The expectations with marijuana tax revenue are always high - no pun intended. Okay, totally pun intended. Tax revenue generated from the marijuana industry sets states far apart, especially when they introduce recreational marijuana. Nevada has seen nothing but good things since they introduced recreational weed and we love what’s going on in Clark Country.
Tax revenue from Nevada’s marijuana industry beat expectations and generated more than $31 million between July and October, with a majority coming from Clark County, according to the Nevada Department of Taxation.
The Nevada Department of Taxation said Monday, “Marijuana taxes generated more than 45 percent of the total projection for the fiscal year in just the first four months after hitting $31.72 million.” With about 80 percent of that revenue coming from Clark County alone. I mean, way to go Vegas.
“We saw a strong upward revenue trend through the first year, and by comparison, the numbers for the first four months of the second fiscal year show a more level pattern thus far,” Bill Anderson, executive director of the Nevada Department of Taxation, said in a statement. “In all likelihood, we will see fairly steady revenue figures across the remaining eight months of the fiscal year, likely with some modest fluctuations up and down.”
Seeing that Nevada has only had 16 months into the recreational marijuana industry - that’s pretty impressive. The total sales of recreational marijuana since October totaled $41.71 million. The state decided on a “wholesale marijuana tax” of 15 percent. This rate is paid by medical and recreational marijuana cultivators and brought in $4.07 million in October, making this its biggest month yet. Revenue from this tax reached a total of $15.07 million in the fiscal year of 2018. Making this one dank year for Nevada and its residents. Why?
“The revenue, with the money collected from the wholesale marijuana tax, funds the department’s costs to administer the marijuana program. Then $5 million of the collected revenue each fiscal year goes toward local governments. The remaining money is sent to the state’s Distributive School Account.”
In 2019, the Department of Taxation projects a total of $69.4 million in revenue for the fiscal year and we can’t be more happy for “The Silver State” and the little rush of revenue they generated by going recreational.