Recreational marijuana retailers in Washington have been steadily slashing prices since the plant was legalized for adult consumption due to the need to meet or beat black market prices, and compete with an ever growing list of legal merchants.
According to the Washington Liquor and Cannabis Board, the average statewide price per gram of the good-good started out at around $25-$35. Now the price per gram has been reduced to around $10, which may not be good for retailers but is sure easier on the consumer’s’ wallet.
The plummeting of the price per gram also has to do with changes in Washington’s tax code regarding marijuana sales.
The original code included an equal 25 percent tax for those that produce marijuana, those that process it and for the retailers. Legislation that was passed in 2015 eliminated the three-tier tax structure and replaced it with a single 37 percent tax at the point of sale.
And rather than increase the price per gram to accommodate for the new tax structure, most retailers chose to keep the prices as they were in order to stay in line with the competition.
Hollie Hillman, a manager at the Freedom Market marijuana shop, doesn’t expect prices to drop significantly more due to the fact that some strains of licensed recreational marijuana have hit illegal street market prices, which is as low as $7 per gram.
“I don’t think it can get much lower than that,” Hillman avowed.
Well, so much for legalization eliminating the black market.
Right, Washington’s weed czar Mark Kleiman?
Although the comment section has since conveniently been shut off, Mark Kleiman commented on an article I wrote that was published on Huffington Post titled “Will the Black Market Continue to Thrive Due to Over Taxation of Recreational Marijuana?” with a one word answer, “No.”
Okay. I stand corrected two years later?.?