SW Washington pot revenue drops after Oregon sales begin – KATU
VANCOUVER, Wash. – Some pot shops in Southwest Washington have seen half their revenue go away since sales in Oregon started.
“We miss a couple regulars that used to come in,” said Morgan Hutchinson, owner of High End Market Place.
Tax records from the Washington State Liquor and Cannabis Board show High End lost about half its revenue in October from the month before.
New Vansterdam, which did $1.26 million in sales in September, did only $612,000 in October.
Main Street Marijuana, the first in Vancouver, had 36 percent less sales in October than the month before.
“The Washington tourism is really high right now with cannabis definitely,” said Morgan McKee, who runs Shango Premium Cannabis in Portland.
Washington has a 37 percent excess tax on marijuana, in addition to the state’s sales tax.
Oregon’s marijuana in untaxed until Jan. 4, when a temporary 25 percent tax starts.
“The 25 percent tax will be more than people are used to currently over there,” said Hutchinson. “That will level the playing field.”
Part of the drop in revenue for Washington pot shops is being they’ve lowered their prices.
There are two main factors behind the price drop, cutting prices to stay competitive with Oregon and more supply.
Hutchinson attributes a large crop of outdoor grown cannabis from Eastern Washington that’s helping to offer a lower cost option to her customers.
One huge advantage Washington shops have over Oregon’s is the diversity of their menu.
“They’re still coming across the bridge for those items,” Hutchinson said as she held a vape pen.
Oregon medical dispensaries can only sell flower and seeds to recreational users.