Pubdate: Tue, 07 Jan 2014
Source: Commercial Appeal (Memphis, TN)
Copyright: 2014 Bloomberg News
Contact: http://web.commercialappeal.com/newgo/forms/letters.htm
Website: http://www.commercialappeal.com/
Details: http://www.mapinc.org/media/95
Author: Alison Vekshin, Bloomberg News

POT COSTS DOUBLE AS COLORADO RETAILERS CASH IN

SAN FRANCISCO - At Medicine Man Denver, a shop in Colorado's capital 
that began selling marijuana for recreational use last week, people 
waited in line to get their first taste of legal weed. Some shouted 
"Freedom!" to the cheering crowd as they walked out with bags of 
dope. They also paid about double the cost of medical marijuana.

Customers were charged $45 for an eighth of an ounce of recreational 
pot, compared with $25 for an identical amount that he sells for 
medical purposes, said Andy Williams, the president and chief 
executive officer.

"They're not used to coming into a facility and paying $25 an eighth, 
so when they come in, it's just whatever the price is," Williams, 45, 
said by telephone. "Having the ability to buy safe, reliable, quality 
marijuana in an environment that's fun and exciting sure beats going 
in a back alley and saying, 'Hey buddy, you got a bag?' "

The retail price of marijuana in Colorado has doubled since Jan. 1, 
when the state became the first to legalize sales to anyone 21 and older.

Pot for recreational use sells for an average of $400 an ounce, 
compared with $200 an ounce for medical marijuana, said Aaron Smith, 
executive director of the National Cannabis Industry Association, a 
Washington-based trade group.

"That's just supply and demand," Smith said. "As more businesses open 
and the businesses get a sense of what the demand is and are able to 
meet it, the prices will go back down."

About 21 percent in state and local taxes is charged on the sale of 
recreational dope, said Amber Miller, a spokeswoman for the City and 
County of Denver.

Colorado voters approved a ballot measure in November 2012 to 
decriminalize the drug in defiance of federal law, which still 
classifies marijuana as an illegal substance. A similar measure was 
approved in Washington state, where shops are set to open later this year.

The changes come as marijuana use is being redefined in the United 
States. Twenty states and the District of Columbia have legalized 
medical marijuana use, and New York Gov. Andrew Cuomo is planning to 
revive a 1980 law to allow some hospitals to make use of the drug for 
patients with cancer, glaucoma and other illnesses.
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MAP posted-by: Jay Bergstrom