Arkansas Sees Record Medical Marijuana Sales Amidst Falling Prices

Few things cost less than they did a couple of years ago, but medical marijuana is a relative bargain.

The average price per pound for all of 2023 was just under $4,550, according to data from the Arkansas Department of Finance & Administration, which includes the Arkansas Medical Marijuana Commission.

The average for November was $4,100. That was almost 10% below June’s average price, although it popped up a bit to $4,170 in December — the biggest month for medical marijuana sales since the state’s first dispensary opened in May 2019. For historic context, the average price per pound statewide for all of 2022 was about $5,466, and for all of 2021 it was $6,565.

That’s great for medical marijuana consumers, but cheaper prices mean less tax for the state. Unlike gasoline, which is taxed by volume regardless of price, marijuana is taxed on the value.

For the last calendar year, the state’s 6.5% sales tax generated $16 million in sales taxes at dispensaries, and the 4% privilege tax on dispensaries and cultivators generated an additional $15.1 million. That $31.1 million was almost $1 million less than the combined taxes generated in 2022.