Anchorage’s First Full Month of Marijuana Sales Tax Revenue Collected

Anchorage is home to four recreational marijuana shops. Combined, the four shops generated $22,000 in marijuana sales tax revenue in January. Although recreational marijuana was allowed to be sold in December 2016, the first full month of the program was January 2017. In December, $19,880 was collected in sales tax.

The first sales taxes collected for December weren’t from all four shops as not all four were open, according to ADN.com.  Supply shortages are partly to blame for the lack of sales tax dollars collected as shops didn’t have enough to sell. Sales tax in Anchorage is set at 5-percent of the total sale.

The state charges an excise tax of $50 per ounce of dry flower. It also charges $15 per ounce for other portions of the marijuana plant. These taxes are paid by the grower.

The total sales of marijuana in January were barely over $100K due to the supply shortages. The way the state is setup for tax payments is that January’s taxes are paid at the end of February. Sales for one month are paid at the end of the next month.

Tax revenue should increase now that Anchorage has six recreational marijuana shops in operation and a steady supply being made available.