Recreational Pot Surges in Rhode Island’s First Year of Legal Sales

Recreational Pot Surges in Rhode Island’s First Year of Legal Sales

Local news outlet WPRI reported last week that the state’s Office of Cannabis Regulation says that recreational marijuana sales “have steadily increased almost monthly over the past year, and the estimated sales for Fiscal Year 2024 is $76 million.”

“That sales estimate, if met, would translate into more than $15 million in state and local revenue: $7.6 million from the state’s 10% cannabis tax, $5.3 million from the 7% sales tax and $2.3 million from the 3% local tax,” the station reported, noting that the Office of Cannabis Regulation “estimates that, in October alone, more than $7 million worth of recreational cannabis products were sold statewide.”

Rhode Island lawmakers last year passed a bill that legalized recreational cannabis for adults aged 21 and older, making it the 19th state in the U.S. to do so.

The bill, which legalized possession of up to one ounce of cannabis for adults and also permitted possession by adults of up to 10 ounces is permitted in a private home, was approved by members of the state General Assembly in May of 2022. The measure also established the framework for legal, regulated recreational cannabis sales in Rhode Island.

“This is a truly momentous day for Rhode Island. I’m deeply grateful to Senator Miller for his years of hard work and leadership on this issue, and I’m incredibly proud to have been part of reaching this point,”  Rhode Island state Senate Majority Leader Michael McCaffrey, a Democrat, said after the legislation passed. “Ending cannabis prohibition helps us right past wrongs while creating new opportunities for all Rhode Islanders. This is the right move, at the right time, for our state.”

The bill was signed into law by Rhode Island Gov. Dan McKee, a Democrat, who later announced that legal cannabis sales would launch on December 1, 2022.

“This milestone is the result of a carefully executed process to ensure that our state’s entry into this emerging market was done in a safe, controlled and equitable manner,” McKee said last year after the sales date was announced. “It is also a win for our statewide economy and our strong, locally based cannabis supply chain, which consists of nearly 70 licensed cultivators, processors and manufacturers in addition to our licensed compassion centers. Finally, I thank the leadership of the General Assembly for passing this practical implementation framework in the Rhode Island Cannabis Act and I look forward to continuing our work together on this issue.”

The Rhodes Island Cannabis Act included “a call for applications for ‘hybrid retail licenses,’” according to the governor’s office. Those hybrid licenses “allow licensed compassion centers to sell both medical marijuana as well as safe, well-regulated and competitively priced marijuana products to Rhode Island adults over the age of 21, was issued in early October,” McKee’s office said last year.

Five cannabis dispensaries (described as “compassion centers” by the state) received approval from the state to open for business on December 1, 2022. There are currently seven licensed dispensaries in Rhode Island, although the state has allowed for 33 retail licenses to ultimately be awarded.

Matt Santacroce, interim deputy director of the Rhode Island Department of Business Regulation, said at the time that the state was “pleased with the quality and comprehensiveness of the applications we received from the state’s compassion centers, and we are proud to launch adult use sales in Rhode Island just six months after the Cannabis Act was signed into law, marking the Northeast’s fastest implementation period.” 

According to the Providence Journal, “$62.9 million worth of recreational retail marijuana has sold in Rhode Island since retail sales began last December,” although that figure “does not include sales for November, nor does it include medical marijuana sales, which are counted separately.”

Including medical marijuana sales, “total retail marijuana sales in Rhode Island top $95 million,” according to the Journal.

But as in other states that have taken the step to legalize adult-use cannabis, the change in law has also resulted in a dip in medical marijuana sales.

Erica Ferrelli, chief of strategic planning, monitoring and evaluation for the state cannabis office, told the Providence Journal that there has been a “drastic” decline in medical marijuana patients over the last year.

“Last December, 15,062 active patients bought marijuana from Rhode Island dispensaries. By October that number had fallen to 10,377,” the Journal reported.

Ferrelli told the newspaper that many patients “just find it easier to transition to the adult-use market” and pay a higher tax in order to avoid “the burden of finding a doctor, getting them to sign you into the program, which is still pretty difficult, pay for an appointment and get yourself there, which for some patients might be quite the hassle.”

The post Recreational Pot Surges in Rhode Island’s First Year of Legal Sales appeared first on High Times.


Comments

Traffic Roots Pixel