For each product category, total monthly spending in dollars is added for the three month-period being used. Total sales (by pound or fluid ounces) are also added for each product category. The results are then divided, providing an average price per pound or fluid ounce, where different prices across the three-month period are weighted by the quantity sold in each month. The resulting average retail price is then divided by a pre-determined markup percentage from wholesale to retail to obtain the final “average wholesale price” for each product category.
The assumed markup from wholesale to retail for January 1, 2026, to March 31, 2026, is 50%. This figure is based on recent wholesale market reports from respected sources and is also consistent with the value that Treasury used to estimate the fiscal effect of the Comprehensive Road Funding Tax Act (CRFTA).
The Cannabis Regulatory Agency (CRA) does not provide retail pricing information for trade samples, but a price for this product category is included in Treasury’s price list, and wholesale tax must be calculated on these transactions. A “trade sample” is a limited quantity of a marihuana product that is provided by a wholesaler to a retail licensee for marketing purposes. The samples are typically intended to be used by the retailer’s employees and are not sold at retail. For all product categories, including trade samples, it is the wholesale entity’s responsibility to maintain adequate books and records demonstrating that all transactions have been recorded in the proper product category.
Treasury’s list of prices is published using quantities of pounds and fluid ounces, depending upon the product. For trade samples, apply the unit of measure (i.e., pounds or fluid ounces) applicable to the product being sold as a trade sample. For transactions involving amounts of product less than a full pound, the published price must be prorated by the wholesaler.
