February Was The Most Lucrative Month Of Marijuana Tax In Nevada

LAS VEGAS, NV - The state of Nevada has already collected 83 percent of its projected tax revenue from marijuana for the 2017-18 fiscal year. Numbers continue to soar past projections in the first year of legalized adult-use cannabis in the state; never more so than in February - the most recent and lucrative of the first eight reported months.

According to the Nevada Department of Taxation, over $35 million in February recreational sales yielded $3.54 million from a 10 percent tax. Wholesale production across the state brought in an additional $2.4 million from a 15 percent tax. The $5.95 million in tax revenue reported by the state is the highest single-month total since recreational use became legal in Nevada in July, 1 2017.

Since that date, dispensaries have sold over $263 million of adult-use cannabis and Nevada has collected $41.88 million in tax revenue, putting the state on the doorstep of its $50.32 million projection with four months still left in the fiscal year.

Most of the marijuana sold for recreational use for the rest of the 2017-18 fiscal year will be a bonus for the state. Projections called for $26.48 million in tax revenue from a 10 percent tax on recreational sales. As of February, $26.37 million was collected.

"The Retail Marijuana Tax has come in significantly above projections each month, though we see some fluctuation from month to month in the dollar amount," said Bill Anderson, Executive Director of the Nevada Department of Taxation.

All of the $26.37 million generated so far has been put into the state's Rainy Day Fund, the department said.

The fiscal year called for $23.84 million in tax revenue from wholesale cultivation. As of February, $15.51 was collected.

"The trend we are seeing is that the Wholesale Marijuana Tax is tracking slightly above projections and is showing steady growth each month," Anderson said.

The money collected from this tax first reimburses the Department of Taxation for operational costs, with $5 million allocated to reimburse local governments for their costs. The remainder will be put in the Distributive School Account.

In April, the state distributed $5 million in tax money to local governments . Each county government in Nevada received $88,235,29. Additionally, several Clark County municipalities received payments. According to documents, the city of Las Vegas received $826,438.72, Henderson received $392,585.42, North Las Vegas received $317,687.01, and Mesquite received $27,204.69

"The overall revenue picture is strong and, if it continues the path it is currently on, we can expect to see end-of-year revenue totals that substantially exceed expectations."

The money is coming from the 316 registered licensees across the state. The Nevada Department of Taxation has issued 115 for cultivation facilities, 80 for production facilities, 61 for retail stores, 34 for distributors, and nine labs.

Image via Shutterstock. Graphs provided by Nevada Department of Taxation