Nevada gambled on the approval of recreational marijuana use and it has paid off. Dispensaries in the state sold over $27.1 million of marijuana in July.
That amount is nearly double what both Oregon and Colorado sold in the first month after approving the drug and is seven times more than what was sold in Washington.
Banking on the popular drug, Nevada earned $10.2 million off the industry in just its first month of being sold legally during July, according to the state’s Department of Taxation.
Of the more than $10 million, $6.5 million was received from fees from the industry and tax revenue of $3.68 million.
Governor Brian Sandoval has estimated that between its medical marijuana industry that is just 2-years old and the new recreational marijuana industry, Nevada could receive as much as $100 million during the next two fiscal years from fees and taxes.
However, the new projection is that Nevada will generate closer to $130 million from just taxes during the upcoming two years, said a spokesperson from the taxation department.
The state took in $2.71 million from its 10% tax that is added to each sale of recreational marijuana. Another close to $975,000 was received from the wholesale tax that is 15% paid by those who cultivate the drug for both recreational and medical use.
Although people in Nevada hoped a large portion of the revenue from the industry would be for schools, just a portion of the total will used for that.
Initially, the governor proposed that revenue from sales tax would be used for schools, but he later decided to shift that money to the rainy day fund of that state so that the budget for the education department was not dependent upon the marijuana market.
The state’s rainy day fund is able to be used for anything, but is usually saved for any unexpected disasters that occur.
Revenue from the industry’s 15% wholesale tax that gets tacked on when the drug is cultivated for medical and recreational use is used for paying for the costs incurred by the local and state governments.
Anything that is left over is applied to the School Distributive Account that gives money to state schools per each pupil. Income from fees is to be used the same way.
Of the 333 applications to open a recreational marijuana sales business, 250 licenses have been issued, including 53 at the retail store level, 92 cultivating facilities, 65 facilities for product manufacturing, 9 labs for testing, and 31 licenses for distributors.