Oklahoma cannabis industry smashes record monthly sales number in April

Roll aside, toilet paper.

Oklahomans rushed to purchase another product in record volume last month, as medical marijuana dispensaries logged enough sales to spike tax collections by more than 25%.

According to the Oklahoma Tax Commission, dispensaries remitted almost $9.8 million in state taxes during April. That includes traditional sales taxes and the 7% medical marijuana levy.

The tally smashes the previous record of $7.8 million set in March, and is the highest month-to-month increase since last summer.

An analysis of tax collections shows Oklahomans spent about $61.4 million on medical marijuana last month, or nearly $217 per licensed patient.

April tax collections began just a week after Gov. Kevin Stitt issued his "Safer at Home" directive that shuttered many nonessential businesses and sent Oklahomans home from work. Stitt included marijuana dispensaries as an essential industry, however, allowing them to remain open.

"With the stay-home order in place, and medical marijuana dispensaries being categorized as essential health services, Oklahoma patients were afforded the ability to take their medicine on a more regular basis and sample a broader range of available medicines," said Bud Scott, executive director of the Oklahoma Cannabis Industry Association.

The Tax Commission data doesn't include sales volume, so the higher tax collections could be influenced by higher retail prices. However, Scott said many dispensaries offered deals in April to boost sales.

Despite the record sales, some businesses continue to struggle as the industry matures amid intense competition. Some business owners felt it unfair they were excluded from financial assistance issued to other businesses during this pandemic, as the industry is still federally illegal and therefore not eligible for federal assistance programs.

With just four months of 2020 in the books, Oklahoma's medical marijuana industry is on track to eclipse 2019 sales. Tax collections are already more than half of the total collected last year.

Keith Wiley, owner of Native Brothers Dispensary, said his own sales are down recently but that larger chains offering near-wholesale prices might have seen the bulk of the uptick.

Wiley noted that cannabis is used as a stress-reliever – something that could explain more robust sales during the coronavirus lockdown.

"I've probably medicated more these past few months. You've got people staying home and getting stimulus checks, and what are they spending it on? Things that help keep them calm and collected," Wiley said.

Another factor that might explain the data, he said, is uncertainty about future supply and whether patients can access dispensaries during a time when many people are limiting their exposure to the outside world.