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Alaska’s cannabis industry searches for solutions to slowed growth

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As the industry growth and revenue sees a plateau, state and industry leadership explore ways to help the industry.

FAIRBANKS, Alaska - Like many industries, the cannabis industry was impacted by the Covid-19 pandemic. However, as the industry recovered, the boom that it once saw dramatically slowed down.

The plateau in Alaska’s cannabis industry stems from multiple areas. One of the biggest areas of concern is the cannabis tax, specifically the tax model being used for cannabis. In Alaska, the state applies an excise tax on cannabis “It’s put in place when the marijuana goes from the cultivator to either the manufacturer or the retail establishment,” said Karinne Wiebold, an economist with the Alaska Department of Labor and Workforce Development.

Despite these changes, the marijuana task force is recommending the state switch to a sales tax. “Retailers are best Some in the industry agree with the task force’s idea. “I think that’s a change that would make a lot of sense and I think we’ve been asking for that since the very beginning,” said Keenan Hollister, owner of Pakalolo Supply Company. Others, however, think the change would be moot. “If you reduce the tax for the cultivator... their price is going to go down too. So, I don;t think they’re going to benefit as much as they think they will,” said Dan Peters, owner of GoodSinse.

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