The numbers are in for Nevada’s first fiscal year of adult-use cannabis sales: marijuana tax collections totaled $69.8 million, according to a news release from Nevada’s Department of Taxation. The state earned about 140% more cannabis tax revenue than was predicted.
Adult-use sales totaled $424.9 million for the year; $42.5 million was collected through a 10 percent retail tax and $27.3 million was collected via a 15 percent wholesale tax. According to the release — and in keeping with the trend that these markets build up over time — the final four months of the fiscal year were the most successful.
The wholesale tax dollars, along with the program’s application and licensing fees, will go primarily to Nevada’s Distributive School Account to benefit education throughout the state. The retail tax dollars will be deposited into the Rainy Day Fund.
“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. As we move into fiscal year 2019, we expect to see continued growth in the industry by way of additional businesses opening up, and we expect revenues to continue to be strong.” — Bill Anderson, Executive Director of the Nevada Department of Taxation, in a statement
After Nevada voters approved the tax-and-regulate cannabis marketplace in 2016, lawmakers rushed to establish the marketplace. Adult-use sales launched in Nevada in July 2017.