The Alaska Department of Revenue’s latest revenue forecast sees a spike in marijuana tax revenue in the current fiscal year over last year but expects the total to drop off in fiscal 2020.
The department issues revenue forecasts each spring and fall. The forecasts cover all of the state’s revenue streams, though most of it is related to revenue from the oil and gas industry.
The state collected $10.8 million in marijuana tax revenue in fiscal 2018. Of that, $5.44 million went into the general fund and $5.35 million went into the recidivism reduction fund.
Marijuana tax revenue by law is distributed roughly equally between the two accounts.
The Revenue Department projected $6.2 million will go into the general fund in the current fiscal year, according to its spring forecast, which was issued March 15.
General fund marijuana revenue is expected to fall to $5.3 million, however, in fiscal 2020. The report provides no explanation for the projected drop.
The state tax is $50 an ounce on marijuana bud and flower, with the remainder of the plant taxed at $15 an ounce. A new rate of $25 an ounce of immature or abnormal bud took effect Jan. 1 of this year.