Colorado Department of Revenue releases Average Market Rates for adult-use marijuana effective January 1, 2019

DENVER, Colo. Thursday, December 20, 2018 -- Colorado Department of Revenue (DOR) today released the Average Market Rates (AMR) for retail (adult-use) marijuana effective January 1, 2019.

The average price per pound of bud and trim rose moderately from the previous quarterly update, specifically to $781 per pound for the bud rate (from $759) and $396 per pound for the trim rate (from $325). The wet whole plant rate and the seed rate also increased, to $151 for wet whole plant (from $100) and $5 for seed (from $4). The bud allocated for extraction rate, trim allocated for extraction rate and the immature plant rate each saw a decrease from the previous AMR.

“The quarterly Average Market Rate update is just one of many examples of the Department of Revenue's use of data in helping regulate the burgeoning cannabis industry,” said Mike Hartman, executive director of the Colorado Department of Revenue. “Industry participants use this report as part of excise tax calculations in certain retail transactions, but the Department sees it as one of the important tools that the state uses to closely monitor supply, demand and pricing dynamics.”

The January 1 AMR was calculated based on retail marijuana transactions recorded from August 1, 2018 through October 31, 2018 in DOR’s Marijuana Enforcement Division (MED)’s marijuana inventory tracking system. AMR is defined as the average price of all unprocessed retail marijuana that is sold or transferred from retail marijuana cultivation facilities to retail marijuana product manufacturing facilities or retail marijuana stores.

Visit the Taxation Division’s website for more information, including the methodology of the AMR calculations and current and prior AMRs: Colorado.gov/Tax/marijuana-taxes-file.

 

Shannon Gray, marijuana communications specialist, DOR

303-866-4815 | 720-607-0386 (c) | shannon.gray@state.co.us