Last Friday, the Colorado Department of Revenue (CDOR) released the Average Market Rates (AMR) for retail marijuana effective January 1, 2024, until March 31, 2024.
One of the AMR categories saw an increase this quarter, with trim increasing to $304 per pound, up from $150 per pound the previous quarter. Decreases were seen in two categories, with bud allocated for extraction at $250 per pound, down from $350, and wet, whole plant at $10 per pound, down from $71 per pound.
Four of the AMR categories remained static, specifically the bud rate ($750), the trim allocated for extraction rate ($30), the immature plant rate ($15) and the seed rate ($9).
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 the rate-setting requirements, the department calculated the most recent AMRs using METRC data from September 1, 2023 through November 30, 2023. 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:
- Transfers that originated at a retail cultivator
- Transfers to retail stores or retail infused product manufacturers (retail MIPs)
- Transfers of unprocessed marijuana
- Transfers between unaffiliated businesses
- Transfers with a receiver price greater than a penny
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.
