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.