Municipal tax records show sales of retail marijuana rose from $22 million to $28 million in the Fairbanks area from 2018 to 2019.
The growth in marijuana sales has been steady since 2017. It slowed in early 2019 but quickly rebounded, according to the borough’s latest Community Research Quarterly.
The city of Fairbanks and the Fairbanks North Star Borough collected a total of $1.4 million in sales taxes on cannabis in 2019, according to municipal officials.
The city’s portion of the 2019 tax revenue is $1.16 million, according to Margarita Bell, chief financial officer.
The borough, which collects from fewer stores, received $245,214 in tax proceeds on cannabis sold in 2019, according to Lanien Livingston, borough public information officer.
The collections are higher than in 2018 when the two governments collected a total of $1.1 million in sales taxes on cannabis. The numbers reflect a 28% increase from 2018 to 2019.
The city of Fairbanks projected it would receive $1 million in tax revenue from cannabis last year and again this year, according to Teal Soden, city communications director.
The borough’s current budget shows officials are projecting $140,000 in sales tax revenue on pot for the current fiscal year.
The money at both the city and the borough goes into each government’s general fund.
Contact staff writer Amanda Bohman at 459-7545. Follow her on Twitter: @FDNMborough.