The state of Nevada had projected that its new recreational cannabis market would yield $50 million in additional tax revenue during its first 12 months. They’re on pace to beat that number handily.
The Las Vegas Review-Journal runs the numbers from the Nevada Department of Taxation to find that far more legal cannabis is being sold — and taxed — than the state had anticipated. For the month of September, Nevada dispensaries beat the state’s sales projections by more than $5 million, netting $27 million in sales for the month.
Recreational cannabis became legal in Nevada on July 1, 2017.
July and August also beat projections, with the month of August seeing $33 million in cannabis sales, and July pulling $27.7 million.
Nevada essentially taxes cannabis three times, with a 15% excise tax on wholesale transactions, the standard 8.1% Nevada sales tax, and an additional 10% cannabis retail sales excise tax.
Patients who buy cannabis in Nevada with a medical ID card are not subject to the 10% excise tax.
The taxes collected cover the local government's cost of regulating the industry, with the remaining funds going to the state’s public education fund.
At the current pace, recreational-use cannabis sales will total more than $350 million in Nevada’s first year in the market.