Marijuana Tax Revenue Reaches $69.8 Million For Nevada’s First Year

in Local News

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.  These state-licensed dispensaries and retail stores saw total taxable sales,  including 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% Retail Marijuana Tax. The 15% Wholesale Marijuana Tax brought in close to $27.3 million for the fiscal year. Revenues from the wholesale tax, along with 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 the 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 the fiscal year 2019.

The Retail Marijuana Tax rate is 10 percent; the revenues from this tax goes to the State Rainy Day Fund 

• The Wholesale Marijuana Tax rate is 15 percent; the revenues from this tax, along with fees/penalties/assessments and 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 Department distributed a total of $42.5 million to the state Rainy Day Fund in the fiscal year 2018

(Department of Taxation contributed to this report.)

 

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