Nevada’s recreational cannabis market is off to a smashing start.
Dispensaries across the state took in more than $27 million during July, Nevada’s first month of recreational cannabis sales – generating more than $3.6 million in taxes.
During their first months of sales, both Oregon and Colorado sold roughly $14 million. Washington, on the other hand, only sold about $3.8 million in its first month.
“We came out of the gate like a shotgun,” said Matt Morgan, CEO of Reef Dispensaries, adding that, “I still don’t think everyone understands that it’s recreational in Nevada yet.”
Within the state, $2.7 million in tax revenue came from the 10 percent special excise tax on recreational cannabis.
“Although July was not accounted for in our projections, the first month’s revenues demonstrate that the state’s structure appears to be collecting as a rate consistent with the consensus forecast,” said Gov. Brian Sandoval’s spokeswoman, Mari St. Martin.
An additional $974,060 came from the 15 percent wholesale tax levied on both medical and recreational cannabis when it’s transferred from grower to seller.
Nevada has also garnered $6.5 million for cannabis license and application fees.
These revenues will go toward covering the administrate costs to regulate the industry for the Tax Department and local governments, with all remaining funds being infused into the state’s public education fund.