John Locher / AP
People wait in line at the Essence cannabis dispensary in Las Vegas, Saturday, July 1, 2017, as recreational sales of marijuana begin.
Monday, Oct. 23, 2017 | 5:30 p.m.
Nevada tax officials say the second month of legal sales of recreational marijuana brought in just under $5 million in tax revenue, up from $3.7 million in its first month.
Nevada Tax Department spokeswoman Stephanie Klapstein said the numbers are on pace to meet the state’s expectation of $120 million in state taxes over the next two years.
A 15 percent tax on wholesale distribution from cultivators to dispensaries and 10 percent tax on recreational marijuana sales raised $4.86 million in August, up from 3.68 million in July. That money goes to the state’s rainy day fund.
The $120 million biennial projection projects $5 million in monthly tax revenue. Klapstein says officials projected no revenue for July because of uncertainty surrounding licensing, distribution and local ordinances.
State Sen. Tick Segerblom, who championed legislation setting up the framework for Nevada's recreational cannabis industry in this year’s Legislature, called Thursday’s numbers “a great start,” adding that tax revenue exceeding state projections was “a good thing” for public schools.
Marred by one of the greatest budget deficits in its 60-year history, the Clark County School District — the fifth largest in the United States — has announced it will be cutting up to $80 million this school year, primarily through teacher and administrator layoffs.
Segerblom said he expects monthly tax revenue to double by the first six months of 2019, and is considering pushing for a special legislative session before then to allocate extra cannabis tax revenue to the state’s debt-ridden schools.
“The tax numbers are going to keep growing,” he said. “There’s a lot more where this came from.”
