Say goodbye to booze and welcome to Marijuana; the new money maker in Washington. Since its legalization, folks are warming up to it faster than you could say ‘pot’. It seems the gamble is finally paying off as the state is raking in millions in taxes if the state data is anything to go by.It is safe to say that pot is now leading the retail sector in the state of Washington.
So how is it performing?
Going by last year’s data it’s astonishing how much money Washington state collected from ‘pot’ taxes. As at the end of 2016, sales volumes were past the $1 billion dollar mark, while taxes collected were above $400 million, increasing profits drastically from the drugs and health sector in general anticipated positive results but to be honest, not this good. Stores are sprawling up fast as more customers seek to get the once elusive drug. Here is just how successful it has been.
What could be the reason behind the sudden increase in uptake of Marijuana?
There must be some factors that act as incentives and I think I have a couple of reasons that might explain the surge in pot sales.
First of all, since there was a consolidation of the markets for the recreational as well as medical Marijuana, it made it more accessible and easier for the consumer to access the drug. The average number of shops in these market could run up to around 160 shops.
Changing the Tax Laws
The second point is the move by the state to implement a flat tax rate that would cover all sectors that deal with the drug. Currently, there’s a flat rate of 37% tax on the product as opposed to before where the growers, processors, and retailers were charged individually at the different stages. With the changes, it, therefore, becomes more attractive to lower the final price of the commodity which in turn attracts more people. Finally, Washington has speeded up the process of handing out licenses to the parties involved. Growers, processors, and retailers are getting their licenses approved thick and fast. Faster means more shops, more pot, more customers and more money.
Washington has shocking figures when it comes to Marijuana revenue; by the end of the third quarter in 2016, revenue from pot had surpassed revenue from hard liquor by $50 million if data from the state department of revenue is anything to go by.
This is a new era where Marijuana or pot is the new drug of choice. As much as there are those opposed to legalization; those who have access to it are enjoying, and going by the amount of revenue collected, we could conclude that they are finding value for the money.