The State of Pot: Washington State Earns $70 Million in Tax Revenues

Nearly a year after legal pot shops opened their doors in Washington state, sales are at an all-time high of $1.4 million per day and tax revenue on cannabis has spiked to $70 million, exceeding expectations.

In addition to $70 million tax revenues, prices for recreational marijuana are also coming down.

Still, the transition hasn’t been all smooth sailing for pot farmers, processors, and retailers. They’ve had to endure competition with an unregulated medical marijuana market, as well as a three-level excise tax from farm to store.

"Looking back now, it's amazing we could be so successful and unsuccessful at the same time," says Jeremy Moberg, a long-time black-market grower who went legal and now runs CannaSol Farms in north-central Washington. "We're the No. 9 grower in the state, and my bank account just seems to stagnate."

Help may be on the way as some new laws go into effect this year. One would require medical marijuana to be taxed and regulated. Another will replace the three-level excise tax with a 37 percent tax levied on the customer. So, retailers won’t have to mark it as income on federal filings.

Despite the tax, consumer prices are dipping as more marijuana is produced. When stores first opened, the average price for a gram was $30 – three times the rate for medical marijuana. 

Today, that number averages around $11.50.

So, what’s the next step in Washington’s experiment?

Rick Garza, director of Washington's Liquor Control Board, which will be renamed the Liquor and Cannabis Board, says he wants to further Washington's efforts at meeting the tasks laid out by the Justice Department.

This means keeping criminal organizations out of the industry, keeping the marijuana in-state, and keeping pot out of kids’ hands.