Las Vegas Sun

March 28, 2024

A new record: $8.2 million in taxes collected in October for Nevada pot sales

The Grove Marijuana Dispensary

Steve Marcus

A view of the lobby at The Grove marijuana dispensary, 4647 Swenson St., Friday July 13, 2018.

Tax revenue from marijuana sales in Nevada continue to soar, setting a new high of more than $8.2 million in October, the 16th month of legal recreational pot sales, officials said today.

That’s up from the previous high of $8.08 million in August.

The revenue includes a 15 percent wholesale tax on medical and recreational marijuana, and a 10 percent excise tax on recreational sales.

“We saw a strong upward revenue trend through the first year, and by comparison, the numbers for the first four months of the second fiscal year show a more level pattern thus far,” said Bill Anderson, executive director of the Nevada Department of Taxation, which regulates the industry.

The 15 percent wholesale tax — paid by cultivation and production facilities that supply dispensaries — generated $4.07 million in October. The 10 percent excise tax brought in $4.17 million. The excise tax, paid only on recreational pot, has raised $16.65 million through four months of fiscal year 2019.

When legal marijuana sales launched in July 2017, Gov. Brian Sandoval’s office projected the two taxes would raise an average of $5 million a month for the initial two years, for a total of $120 million. Those figures now seem low.

More than 140 percent of the $50.32 million in excise tax projected through June 30, 2018, have been collected, Department of Taxation spokeswoman Stephanie Klapstein said. The first four months of the new fiscal year have already reached 45 percent of the projected average for the 12-month period through June 2019, she said.

Clark County has accounted for about 80 percent of the state’s pot tax revenues, Anderson said, while Washoe County’s share is about 14 percent.

Revenue from the wholesale tax is allocated to fund state and local government regulation of the industry, and what’s left is deposited into the Distributive School Account. Revenue from the excise tax is deposited into the Nevada Rainy Day Fund.