The Nevada government is raking it in with the legal cannabis market and the demand for medical marijuana and recreational marijuana is not likely to slow anytime soon. Tourists are flocking to one of their favorite destinations for debauchery and now have an additional indulgence. The demand for recreational marijuana is so strong that dispensaries cannot keep the cannabis on the shelves and there are concerns that there is not enough cannabis being grown to keep up with the demand.
Nevada is on such a strong pace for marijuana sales that it is besting all of the other recreational weed states. The Nevada government pulled in $3.68 million in tax revenue generated from cannabis sales and on top of that, another $6.5 million in licensing and application fees. Recreational marijuana sales just began on July 1st of this year. Can cannabis businesses in Nevada maintain their stores paying these sorts of fees? Will the Nevada government make turning a profit too challenging for the cannabis industry?
Sin City—and other areas of Nevada—are raising some serious cash with their latest vice.
July was the first month of legal recreational marijuana sales in the state, which has just announced the tax impact. All totaled, medical and recreational cannabis sales generated $3.68 million in tax revenue. And the tracking number for the next two years is even more impressive.
Officials estimate that between the two taxes that accompany cannabis sales in the state, locals and tourists will add nearly $120 million to the cofers.
Nevada charges a 15% wholesale tax to cultivators, which goes to state schools. A separate 10% retail tax is put into the state ‘rainy day’ fund.
Beyond taxes, the department of revenue says it has raised $6.5 million from license and application fees from businesses that are hoping to cash in on the new legality of cannabis in the state.
It’s an impressive beginning, but all eyes are on California, which will begin legal recreational marijuana sales in 2018 (no specific date has been announced). Legal pot there is expected to bring in a smoking $5 billion in sales each year.