COAST RIVER BUSINESS JOURNAL
NOVEMBER 2019 • 9
MARIJUANA BUSINESS
Taxes take toll on Pacific
County pot growers
By LUKE WHITTAKER
Coast River Business Journal
PACIFIC COUNTY — Eight mari-
juana growers have shuttered their doors
over the past two years in Pacific County,
nearly half the licensed businesses.
Some fear that more could close as a
result due to high taxes and over regula-
tion that unfairly burdens small growers.
“Almost all of the (Pacific County
growers) have gone out of business
and it’s a continuing trend,” said Ilwa-
co-based Vancouver Weed Company
owner Gary Green, a tier-1 marijuana
grower, the smallest of Washington’s
three categories.
“We’re still struggling with over tax-
ation and regulation. We feel like we’re
sharecroppers for the state. The state
makes more tax revenue per gram (of
marijuana) than we make selling it. That
shouldn’t be legal.”
Washington enforces a 37% mari-
juana excise tax compared to 17% in
Oregon and 15% in California.
“The state point of sales tax is 47.5
percent and that’s not including the cap-
ital gains, sales and workers tax,” Green
said. “It actually comes out to about 67.5
percent tax. That makes it very rough.”
Small growers seeing slimmer
profit
On store shelves, Green sells his mar-
ijuana under the Vancouver Weed Label
for around $10 per gram, but only about
$3 ends up in his pocket.
“Most stores are marking product up
by 300 to 400 percent. We’ll sell it to
them for $3 a gram and they will sell it
for $12. And then the state takes half of
that. The state gets $6 a gram while me,
the grower, gets $3. It’s insane.”
Green considers himself relatively
fortunate since his counterparts are often
getting much less.
“I’m lucky that I get $3 per gram.
Most growers are getting $1.50 to $2 per
gram. They then sell it for $30 or $40
per eighth (3.5 grams). They’re getting
LUKE WHITTAKER
earthy.
“If I say something tastes like
oranges, it should taste like oranges,”
Green said leaning to smell his latest
creation, a cross between ‘Grape Ape’
and ‘Agent Orange’ that smells of ripe
mandarin oranges.
Green continues to grow his ever pop-
ular ‘Red Skunk’ and ‘Spider Glue,’ but
has been experimenting by cross breed-
ing established strains to create new
ones, including ‘Blackberry Dream,’ a
cross of ‘Blackberry’ and ‘Blue Dream.’
It typically takes at least 120 days to
grow marijuana start to finish, depend-
ing on the method and strain involved.
“Every bud on the shelf takes four
months minimum,” Green said. “We’re
craft so we can only produce so many
pounds per month. Our goal is to pro-
duce 20-25 pounds per month. We’re
getting close.”
The majority of Green’s marijuana is
sold at Miller’s Marijuana in Elma, Bud
Hut, and Mr. Doobes in Ilwaco.
“We do about $200,000 in sales per
year,” Green said. Overall the business
has generated more than $550,000 in
sales since June 2015.
Vancouver Weed Company owner Gary Green believes Washington is unfairly burdening
small businesses with high taxes and over regulation. “The state makes more tax revenue per
gram (of marijuana) than we make selling it. That shouldn’t be legal,” he said.
Chinese holiday puts pot on
hold
$3,200 to $4,800 per pound while we’re
getting $1,300-$1,400. And we have to
do all the growing, trimming, packag-
ing, labeling and delivery. They don’t
take any of that into account.”
Green is hopeful regulation changes
could be on horizon, perhaps as early as
the new year.
“A lot of things are being discussed
right now about treating smaller grows
like us as they do with wineries and
breweries. Soon we may have the
opportunity to sell direct to the public,
like they do in Oregon. They’re find-
ing that it’s working and making small
businesses successful. In Washington,
the small businesses have been getting
destroyed.”
Annual holiday celebrations in China
have a way of disrupting Green’s pot
business in Pacific County.
Over the past few weeks, Green has
been experiencing considerable delays
in product shipments, particularly glass
jars used to package cannabis. Green
typically orders his supply two or three
months at a time, which compounds his
concerns after a delay.
“Most products come from China,
all the packaging and glass jars. For
a whole month they shut everything
down,” he said.
In the past, the delays typically
occurred early in the year, around the
New Year in China (celebrated Jan. 25)
but have been plaguing his business ear-
lier than usual this year.
Oregon marijuana retailers can cur-
rently grow and sell their own mari-
juana in the same building with proper
licensing, which would be illegal in
Washington.
“Stores have access to sell directly to
the customer while we don’t. The stores
are making more than the growers are.
It’s apparent with how many growers
have gone out of business versus the
stores,” Green said.
Eco-friendly farming
Green embraces an eco-friendly “sea
of green” grow method that’s pesticide
free in producing strains that have the
look, taste and smell consumers seek,
from sweet and fruity to the dank and