Despite issues with distribution when legal recreational cannabis sales opened in the state of Nevada in July, Nevada marijuana sales hit $27M in first month of Recreational Sales.
Nevada had a rough start for recreational sales, which started on July 1st. The law making cannabis recreationally legal also set out regulations that guaranteed alcohol wholesale distributors sole rights to transport cannabis and derivative products for the first 18 months of sales. However, none had attained licensing by July, and the Governor issued a state of emergency to make emergency legislation, due to the real threat of dispensaries running out of products to sell, which could lead to closures and loss of jobs. Though the state and legal representatives of the alcohol wholesalers are still arguing in court, stop-gap measures seem to be keeping supplies steady.
Because of the chaos, the state expected to see low tax revenue for Nevada marijuana sales the first month especially but was surprised that it wasn’t as bad as it could have been. The state has projected tax earnings, reaped from 15 percent wholesale and 10 percent retail taxes, to top up around $120 million bi-annually. This would require $5 million in tax revenue per month, and though it’s not quite there, $3.7 million isn’t too far off. Nevada Tax Department spokeswoman Stephanie Klapstein said that they were “good numbers” that are consistent with those projections; they hadn’t projected any tax income for the month of July, so such a high number is better than could have been expected.
Plans for the collected taxes will partially go towards a “rainy day” fund, with the majority of the funds going to schools in the state.