Alaskans voted in 2014 to replace an illicit marijuana market with a tightly regulated system, creating one of the most structured regulatory systems in the country. The state's marijuana tax revenue is expected to drop from $26 million in fiscal year 2025 to about $24 million by fiscal year 2027. However, industry projections suggest this could be even more severe as licenses disappear and operators exit the market. The problem is that the economic structure supporting the legal market no longer reflects current market conditions. Licensing fees exceed the cost of regulating the industry, and competition from intoxicating products outside Alaska’s regulated cannabis system is compounded by high retail prices. The Alaska Legislature has the power to modernize the state’�s cannabis tax structure and allow licensed businesses to compete with illicit sellers.