Colorado Releases Average Market Rates for Retail Marijuana Effective January 1, 2023

The Colorado Department of Revenue (CDOR) released the Average Market Rates (AMR) for retail marijuana effective January 1, 2023 until March 31, 2023.

Three of the seven AMR categories increased this quarter, specifically trim ($253), bud allocated for extraction ($350) and seed ($9). Two of the seven rates decreased, specifically trim allocated for extraction ($61) and wet whole plant ($101). Two rates stayed the same, specifically bud ($658) and immature plant ($13).
The AMR is the median market price of each category of unprocessed retail marijuana that is sold or transferred from retail marijuana cultivation facilities to retail marijuana product manufacturing facilities or retail marijuana stores. CDOR’s Office of Research and Analysis, in coordination with the Taxation Division and the Marijuana Enforcement Division (MED), calculates AMRs quarterly for use in levying the excise tax as required by Colorado statute.

In order to estimate the AMR for each of the categories and to comply with the rate-setting requirements of §39-28.8-101(1.5), C.R.S., the Department calculated the AMRs for January 1, 2023 through March 31, 2023 based on transactions from September 1, 2022 through November 30, 2022. The transactions originated from retail marijuana cultivators and were recorded in the marijuana inventory tracking system (METRC).

The AMR dataset includes transfers that meet the following criteria: 1) transfers that originated at a retail cultivator, 2) transfers to retail stores or retail infused product manufacturers (retail MIPs), 3) transfers of unprocessed marijuana, 4) transfers between unaffiliated businesses, and 5) transfers with a receiver price greater than a penny. For each item transferred, prices per pound (for bud, trim, bud allocated for extraction, trim allocated for extraction, and wet whole plant) and prices each (for immature plants and seeds) were calculated. The AMR for each category is the median market price (per pound or each) of all included transfers in that category.

For more information, visit the Taxation Division’s website, including the methodology of the AMR calculations (including a new video) and current and prior AMRs: https://tax.colorado.gov/average-market-rate.

Recreational Cannabis Sales in New Jersey Boom

Sales receipts on recreational cannabis in New Jersey for July 2022 to September 2022 totaled $116,572,533. With medicinal cannabis sales included, the total goes up to $177,710,764, according to the New Jersey Cannabis Regulatory Commission.

There are now 20 dispensaries in New Jersey selling recreational cannabis; another 10 sell medicinal cannabis to registered patients only.

“New Jersey is only seeing the beginning of what is possible for cannabis” said Jeff Brown, executive director of the New Jersey Cannabis Regulatory Commission. “We have now awarded 36 annual licenses for recreational cannabis businesses to New Jersey entrepreneurs, including 15 for dispensaries. Those businesses alone will be a significant growth of the market.  With more locations and greater competition, we expect the customer base to grow and prices to come down.”

While there was an increase in medicinal cannabis sales, the largest increase was in recreational sales - 46% more than between April and June 2022.

“We are looking forward to seeing local, small business owners participate in this lucrative market,” said NJ-CRC Chairwoman Dianna Houenou.  “Our priority application process as well as new initiatives like the no-cost Cannabis Training Academy being launched by New Jersey Business Action Center in early 2023 are paving that path for them to be included.”

The New Jersey Cannabis Regulatory Commission establishes and enforces the rules and regulations governing the licensing, cultivation, testing, selling, and purchasing of cannabis in the state.