The highest-grossing retail marijuana shop in Washington State is located just a few miles from the border with Oregon, which is in the process of setting up its own recreational cannabis industry.
The New Vansterdam retail store – in Vancouver, Washington – recorded $3.2 million sales from the start of legalized rec in July through the end of 2014. The shop is just minutes from Portland, Oregon, which has a population of more than 600,000 residents.
Its sales outpaced Cannabis City in Seattle, which generated $3.19 million, the Seattle Post-Intelligencer reported, citing data from the Washington State Liquor Control Board.
The sales data indicate that consumers from Oregon are heading north to purchase cannabis.
The reverse could materialize down the road, however. Many professionals in Washington fear that high prices for recreational marijuana – fueled mostly by taxes – will drive some customers to Oregon when its MJ market launches in 2016. The tax burden on cannabis businesses is expected to be much lower in Oregon, meaning marijuana could be cheaper.
Oregon has moved quickly after voters backed a measure to legalize recreational marijuana in the state during the November elections. Lawmakers approved a half-million dollars in funding to begin implementing its rec law.
WA has got to be pushin $320/oz for fire to actually be in “competition.” I’m not motivated to sell rec for the same price as meds + tax…just isn’t happening
Good to see the tax issues being discussed. We identified this issue in an October blog post leading up to the vote in Oregon on Measure 91 (http://cndg.tl/1skdMyQ). Debating medical vs. rec is futile. The markets will be joined so govts can collect tax regulate. The better discussions are about how to enact a fair tax structure and enable interstate commerce. These will keep prices fairer for more of the population as a result of increased competition. The estimated taxes lost to Washington is $2-$3Million per year while Oregon’s average price per gram is projected to be 40-45% less. http://cndg.tl/1BUmi7i
How in the world did you dopes up North ever allow this BS regarding excessive taxation to take place?
That’s why they call it Dope I guess ……….