Sales of marijuana for recreational use became legal in Oregon on October 1, and demand was literally unprecedented. The more than 250 medical marijuana dispensaries in the state posted first-day sales of $3.5 million, and sales totaled $11 million during the first week.
First-week sales in Colorado totaled $5 million, and those sales in Washington totaled $2 million, according to an AP report citing the executive director of the Oregon Retailers of Cannabis Association.
The booming sales are attributed largely to the existing infrastructure of medical marijuana dispensaries. When Colorado’s recreational sales began the state had just 24 stores and Washington had only four.
Another advantage for Oregon is that growers are lightly regulated, compared with other states, and many have been producing cannabis for medical marijuana sales for more than a year. The state does not yet require growers to be licensed and is not testing the product for pesticides.
For now, cannabis is relatively inexpensive because the state’s taxes don’t become effective until January. Based on our price check, a gram of pot averages about $10.66 in Oregon, compared to an average of $10.31 in Washington and $11.00 in Colorado. The state liquor control commission, which is charged with overseeing the marijuana business in the state, has estimated that Oregon will collect $10.7 million in taxes over the 2015 to 2017 biennium.
The state’s dispensaries are also likely to face a major problem that all legal cannabis sellers share: finding a bank to handle all their cash. The lack of a federal law that permits the legal sale of marijuana and other cannabis products means that credit card companies and banks have refused to accept business or deposits from marijuana sellers. Even the state of Illinois, where medical marijuana sales are permitted, cannot find a bank to handle its marijuana tax collections.
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