Economy

Nevada's first month of pot sales nets US$3.7 million taxes

Nevada's first month of pot sales nets US$3.7 million taxes”

Washington dispensaries sold only $3.8 million worth of marijuana in its first month of legalization, July 2014, and Alaska's pot shops made less than $1 million during its first month of legal sales, October 2016.

Colorado's pot shops sold about $14 million in recreational weed within a month of opening January 1, 2014, and Oregon's saw a similar haul during its first month of retail sales, October 2015. Dispensaries had over $27 million in sales in July alone, which is double what OR and Colorado brought in their first months respectively and seven times what Washington procured. The state of Washington tallied $3.8 million in its first month.

"We came out of the gate like a shotgun", said Matt Morgan, CEO of Reef Dispensaries.

Nevada's market will only grow, he said.

The combination of a 15 percent wholesale and 10 percent retail tax raised $3.68 million in July, the first month of Nevada's fiscal year.

"I think it's fair to say that a number of the establishments struggled to get all of their inventory in stock, so I think it's safe to say that it affected them, but I can't quantify it", Klapstein said.

The state reeled in $2.71 million from the 10% tax tacked on to the sale of all recreational marijuana sales at the register.

That falls right in line with Nevada's marijuana sales estimates even though there were no state projections for July because of uncertainty about when stores would begin sales.

That was significantly more than the $548,000 the state projected for July.

The latest projection, however, is that the state will generate almost $120 million from taxes over the next two years, according to Stephanie Klapstein, spokeswoman for the Department of Taxation.

Nevada became the fifth state in the nation to legalize recreational marijuana sales this summer, following in the footsteps of Colorado, Washington state, OR and Alaska.

The state has also pulled in $6.5 million for marijuana license and application fees.

Those revenues will be used to cover the administrative costs to regulate the industry for the Tax Department and local governments, and all remaining funds go to the state's public education fund.

Nevadans voted last November to legalize retail weed sales, and state regulators had authorized a total of 44 dispensaries to sell recreational marijuana by the time the law took effect July 1.



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