Nevada Collects $69.8 Million in Marijuana Tax Revenue in First Year

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The State of Nevada collected $69.8 million in marijuana tax revenue during the first year of legal adult-use sales, about 140% of what the state anticipated.

The State of Nevada collected $69.8 million in marijuana tax revenue during the first year of legal adult-use sales, about 140% of what the state anticipated.

The Department of Taxation says during the last four months of the fiscal year the state collected more than $6.5 million each month.

At the end of June, there were 64 medical marijuana dispensaries open in Nevada, with 61 of those licensed to also sell adult-use marijuana. For the fiscal year, these state-licensed dispensaries and retail stores saw total taxable sales—which includes adult-use marijuana, medical marijuana, and marijuana-related tangible goods— of $529.9 million. Adult-use marijuana sales totaled $424.9 million for the year, generating $42.5 million in tax collections through the 10 percent Retail Marijuana Tax. The 15 percent Wholesale Marijuana Tax brought in close to $27.3 million for the fiscal year. Revenues from the wholesale tax, along with application and licensing fees, go primarily to education in Nevada, via the state Distributive School Account. With the closing of the fiscal year, the Department of Taxation transferred a total of $27.5 million to that education account. All revenues from the Retail Marijuana Tax have been distributed to the state’s Rainy Day Fund.

The Department of Taxation says it expects to see continued growth into fiscal year 2019.

The state’s consensus forecast for fiscal year 2019 combined marijuana tax revenue is $69.4 million.

Highlights:

• Marijuana tax revenues totaled $7.12 million in June

− The Wholesale Marijuana Tax generated $3.06 million in June

− The Retail Marijuana Tax generated $4.06 million in June

• The last four months of the fiscal year were the largest revenue months; April revenues totaled $6.6 million and March, May, and June each totaled around $7.1 million

• Marijuana tax revenues total $69.8 for fiscal year 2018 (July 2017-June 2018)

− The Wholesale Marijuana Tax generated $27.3 million in fiscal year 2018

− The Retail Marijuana Tax generated $42.5 million in fiscal year 2018

• The total amount of marijuana tax revenue projected for fiscal year 2018 was $50.3 million

− Fiscal year 2018 projections for Wholesale Marijuana Tax were $23.8 million

− Fiscal year 2018 projections for Retail Marijuana Tax were $26.5 million

• Total taxable sales of adult-use marijuana totaled $424.9 million in fiscal year 2018

• Total combined taxable sales for medical marijuana, adult-use marijuana, and marijuana-related tangible goods totaled $529.9 million in fiscal year 2018

• Marijuana-related fees, penalties, and assessments generated $10.7 million in fiscal year 2018

• The Wholesale Marijuana Tax rate is 15 percent; the revenues from this tax, along with fees/penalties/assessments, first go to fund the Department’s costs of administering the marijuana program, $5 million per fiscal year goes to local governments, and the remainder goes to the state Distributive School Account

− In August, the Department completed the fiscal year 2018 distribution to the DSA in the amount of $27.5 million

• The Retail Marijuana Tax rate is 10 percent; the revenues from this tax go the state Rainy Day Fund Image result for Nevada Collects $69.8 Million in Marijuana Tax Revenue in First Year

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