Article by Jenny Kane, RGJ News
Nevada took a gamble on recreational marijuana, and it’s paying off.
Banking on weed, Nevada made $10.2 million off the fledgling industry during the first month of sales in July, according to the Nevada Department of Taxation. Of that, $6.5 million came from industry fees and $3.68 million came from tax revenue.
Gov. Brian Sandoval projected that, between its two-year old medical marijuana industry and the now upright recreational marijuana industry, the state could pull in approximately $100 million over the next two fiscal years from both taxes and fees.
The latest projection, however, is that the state will generate nearly $120 million from taxes over the next two years, according to Stephanie Klapstein, spokeswoman for the Department of Taxation.
Where does the money go?
The state reeled in $2.71 million from the 10-percent tax tacked on to the sale of all recreational marijuana sales at the register. There is no tax upon sale for medical marijuana.
Another $974,060 rolled in from the 15-percent wholesale tax, which cultivators pay before both medical and recreational marijuana are delivered to dispensaries.
“That money was otherwise going to go to the black market. It’s not that everyone decided to start consuming marijuana because it’s legal, it’s just now that we can realize the tax revenue,” said Riana Durett, executive director of the Nevada Dispensary Association.
Although Nevadans hoped much of the industry’s revenue would go to the schools, only a portion will