Nevada Collects $69.8 Million in Cannabis Tax Revenue
[dropcap class=”kp-dropcap”]N[/dropcap]evada collected $69.8 million in tax revenue from cannabis sales during the first full year of legal recreational sales, exceeding expectations by about 140 percent. The tax revenue includes a 15 percent wholesale tax on both medical and recreational cannabis, which totaled $27.3 million and a 10 percent excise tax on recreational sales, which totaled $42.5 million. Total recreational sales for the fiscal period from July 1, 2017 to June 30, 2018, were just under $425 million. Including medical cannabis sales and cannabis-related accessories, Nevada stores sold just under $530 million.
“Nevada’s first year with a legal adult-use market has not only exceeded revenue expectations, but proven to be a largely successful one from a regulatory standpoint. We have not experienced any major hiccups or compliance issues, and our enforcement staff has worked diligently to make sure these businesses understand and comply with the laws and regulations that govern them,” said Bill Anderson, the executive director of Nevada’s Department of Taxation. The department also said it expects to see continued growth in the 2019 fiscal year, and the consensus forecast for combined cannabis tax revenue is $69.4 million.
During the first six months of recreational sales, Nevada collected over $30 million in tax revenue. The Nevada Department of Taxation said the state collected more than $6.5 million in taxes each month for the last four months of the fiscal year. The $7.12 million collected in June, the final month of the fiscal year, was the highest monthly total, topping the previous high of $7.11 million set in May.
Revenue from the wholesale tax, in addition to the various licensing and application fees, goes primarily to the public schools in Nevada through the state Distributive School Account. With the closing of the fiscal year, the Department of Taxation transferred $27.5 million to the account. The revenue from the state’s retail tax will go into the state Rainy Day fund.
