The dip follows a steady increase over the past several months
According to revenue officials in Alaska, the state has seen a decrease in tax revenue generated from marijuana sales. The drop follows a steady increase in revenue enjoyed over the past several months and saw just $1.4 million collected last November. That figure was down from the $1.8 million collected the previous month and $80,000 below what was collected the month prior. In August, $1.54 million was collected.
The Alaska Department of Revenue’s Kelly Mazzei acknowledges that one of the primary reasons was that bud and trim taxable transfers were down due to seasons issues. However, the tax income line has been steadily trending upward since the state began collecting tax revenue from the marijuana industry in 2016. Since that time, the industry has put over $20 million in state coffers.
In Alaska, a tax is paid by marijuana cultivators. The fee is collected when marijuana is sold or transferred from a grow facility to a manufacturing facility or a retail store. In all of last year, monthly tax revenue fell below $1 million in only one month.
Overall, the state cannot be disappointed in the return. Previously, it was reported that the tax revenue for fiscal year 2018 exceeded predictions by just under $2 million. The fiscal year ended June 30 and the state had collected over $11 million. In fiscal year 2017, only $1.7 million was collected. Mazzei said at the time, “We absolutely are exceeding our predictions and additionally we are seeing a very steady increase in tax revenue collection each month.”