DENVER, Colo. - March 16, 2023 - The Colorado Department of Revenue (CDOR) released the Average Market Rates (AMR) for retail marijuana effective April 1, 2023 until June 30, 2023. One of the seven AMR categories increased this quarter, specifically bud allocated for extraction ($405). Four of the seven rates decreased, specifically bud ($649), trim allocated for extraction ($51), wet, whole plant ($81) and seed ($8). Two rates stayed the same, specifically trim ($253) and immature plant ($13).
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 of §39-28.8-101(1.5), C.R.S., the Department calculated the AMRs for April 1, 2023 through June 30, 2023 based on transactions from December 1, 2022 through February 28, 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: 1) transfers that originated at a retail cultivator, 2) transfers to retail stores or retail infused product manufacturers (retail MIPs), 3) transfers of unprocessed marijuana, 4) transfers between unaffiliated businesses, and 5) 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.
Additionally, the Colorado Department of Revenue, Division of Taxation, will host a workgroup meeting for March 28, 2023, at 10:00 a.m. to discuss the promulgation of revised retail marijuana sales and excise tax rules. The agenda for the workgroup lists discussion topics identified by the public and the Department. To obtain a video conference link, or submit written comments, email DOR_TaxRules@state.co.us