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Colorado Sees Fluctuating Retail Cannabis Market Rates in Q2

Only two of the seven market categories increased ahead of Q3.

Only two of Colorado's seven cannabis market categories increased ahead of Q3.
Only two of Colorado's seven cannabis market categories increased ahead of Q3.

The Colorado Department of Revenue (CDOR) released the Average Market Rates (AMR) for retail marijuana effective July 1, 2022 until September 30, 2022.

Two of the seven AMR categories increased this quarter, specifically bud allocated for extraction ($275) and immature plant ($12). Four of the seven rates decreased, including bud ($709), trim ($228), trim allocated for extraction ($120) and wet whole plant ($123). One rate stayed the same, specifically seed ($4).

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 rate-setting requirements, the Department calculated the AMRs for July 1, 2022 through September 30, 2022 based on transactions from March 1, 2022 through May 31, 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. 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.

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