NV pot tax revenue – $31M after 4 months – far ahead of fiscal 2019 projection | nnbusinessview.com

NV pot tax revenue – $31M after 4 months – far ahead of fiscal 2019 projection

Geoff Dornan

Nevada Appeal

Legal cannabis sold at dispensaries such as NuLeaf NV in Incline Village is leading to better-than-projected tax revenues.

CARSON CITY, Nev. — Nevada's marijuana taxes have generated nearly half of projected annual revenue — in just a third of the fiscal year.

Through the first four months of fiscal 2019 (July 2018-June 2019), total tax revenue from cannabis taxes was $31.72 million, more than 45 percent of what was projected in building the state budget.

That amount is based on total sales of $197.95 million in combined medical and recreational marijuana statewide — $51.63 million of that in October alone.

Taxation Director Bill Anderson said that 80 percent of that revenue was generated in Clark County, with 14 percent coming from Washoe County. The rest of the state's counties, including Carson City, only account for 6 percent of pot sales.

For the month of October, tax revenues totaled $8.24 million.

The wholesale marijuana tax paid on both medical and recreational pot sales totaled $4.07 million in October and $15.07 million over the four months of the year so far.

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The retail tax brought in $4.17 million in October and $16.65 million for the year.

Anderson said as more retail pot store licenses are issued, the state can expect to see continued growth in revenue from the retail tax.

In early December, for example, the Taxation Department issued 61 conditional licenses for adult use recreational marijuana stores. Those licensees need to get local government approval before they can open their doors.

October was the 16th month of recreational pot stores in Nevada. Anderson said there was strong revenue and sales growth through the first year but the numbers in the first four months of year two show a more level pattern.