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Colorado: New Cannabis Sales Record Set In March

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By Derrick Stanley
Hemp News

Colorado set a new record in cannabis sales in March, with a total in combined medical and recreational sales of $132 million, according to state Department of Revenue figures outlined by the Cannabist. March was the tenth consecutive month that had sales totaling more than $100 million.

Adult use sales made up $93.3 million of March’s record-breaking sales, while medical cannabis sales totaled $38.4 million.

Andrew Livingston, director of economics and research for the cannabis law firm Vicente Sederberg, estimates that by the end of the year Colorado’s sales could reach $1.6 billion.

At ten months into the state’s fiscal year, licenses and application fees for medical cannabis businesses have fallen 8.5 percent, and 25.4 percent for retail businesses, according to the Department of Revenue. Miles Light, an economist with the Marijuana Policy Group, said the decline “shows that fewer new firms are entering and… sales should be tapering off or declining.” However, he was surprised that sales “continue to grow so quickly.”

“We are not surprised that almost all of the sales growth is in the retail marijuana space,” he said.

Alaska: Marijuana Legalization Would Generate Millions In Taxes

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By Steve Elliott
Hemp News

Millions of dollars in state tax revenue would be generated if Alaska's voters decide in next week's election to legalize marijuana sales to adults, according to a comprehensive report released on Monday by the Marijuana Policy Group, made up of Colorado researchers and economic experts.

The first year of recreational cannabis sales in Alaska would generate about $7 million in state taxes, according to the group, reports Matt Ferner at The Huffington Post. Legal recreational sales of marijuana would account for about 22 percent of total demand in that first year, about four metric tons, according to the report.

"Previous studies incorrectly assume that all demand will quickly shift to regulated markets," the researchers noted. "In our experience, such assumptions are naive." That conclusion would certainly jibe with the legalization experience in Washington state, where scant supplies have driven prices past $30 a gram and have driven many consumers back to the black market.

"If retail prices increase significantly, then most heavy users will avoid this supply mode and buy marijuana from black or grey market sources as possible," the researchers wrote.

Adult Alaskans use nearly 18 metric tons of marijuana, according to the researchers, a demand which is now satisfied through the state's black market, as well as a network of medical marijuana caregivers and home cultivators.

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