BURLINGTON, Vt. (WCAX) – October marks two years since retail cannabis sales officially became legal in Vermont. Our Ike Bendavid talked with a retailer and the state about how things are going.
Inside a building on St. Paul Street in Burlington, a new mural is being painted ahead of the opening of the cannabis dispensary Hey Bud.
“We are hoping this lets us survive as a small, locally owned business in a very expensive, crowded, crazy market,” said Josh Decatur of Hey Bud.
Right now, the dispensary has a small shop inside the Karma Bird House building on Maple Street, but it’s moving to help expand the business and stay viable.
“There is a lot that goes into it. Like there’s, there’s a lot that’s not seen, and I think that there’s been a lot of people who jumped into the market just trying to make money quickly and get out of it, and that’s not what we are like at all,” Decatur said.
Decatur says two years in, Vermont’s retail cannabis landscape isn’t ideal.
“A lot of the legislation was not set up with an eye toward consumers or farmers,” he said.
Vermont’s Cannabis Control Board says it’s not the first time they have heard complaints and they continue to adapt.
“Every year, I have asked the Legislature for minor tweaks to that initial enabling legislation, you know, because they didn’t really think of everything. And we’re recognizing issues in real time that were not anticipated back in 2020,” said James Pepper, the chair of Vermont’s Cannabis Control Board.
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While the setup hasn’t been ideal for some businesses, overall sales have been a different story.
“I’m thrilled that we are where we are,” Pepper said.
Pepper says the state is exceeding revenue projections.
According to the Vermont Department of Taxes, in fiscal year 2023, there was over $58 million in taxable sales, which translates into about just about $11 million in new tax revenue.
In fiscal year 2024, that number jumped to $128.5 million in taxable sales, just shy of $25 million in new revenue.
That money goes into the general fund, with some of it being used to fund substance misuse prevention programming and some given to expand access to after-school programming.
Peppers believes sales will continue to grow.
“People in Vermont use cannabis at higher rates than almost anywhere in the country. The real question was, are they willing to pay a 20% premium for regulated cannabis? And I think what we’re seeing is yes,” he said.
Peppers says the Legislature has requested reports that could hint at possible changes or improvements in things like improving access to the medical program, outdoor cultivation and figuring out what to do with products once a business gives up its license.
As for Hey Bud, they plan to open at their new location next month.
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October marks two years since retail cannabis sales officially became legal in Vermont. Our Ike Bendavid talked with a retailer and the state about how things are going. Read More