Nevada stores have sold $263.7 million in recreational pot through the first eight months of legal sales – only about $1 million short of the total the state predicted for the first entire year of sales.
In February, the state took in a record $5.95 million in tax revenue from recreational pot sales of $35.35. Approx. $3.5 million of that came from the 10% excise tax on retail pot sales and the rest came from the 15% tax on wholesale marijuana.
The state brought in approx. $41.9 million of marijuana tax revenue though February, which is approx. 83% of the $50.3 million the state projected for the first full year of sales.
So where has the money gone?
$26.4 million of the tax revenue which came from the 10% excise tax on all recreational marijuana purchases has gone to the state’s rainy day fund. A law passed during the 2017 legislative session directs that the money goes to the rainy day fund.
State Sen. Tick Segerblom, D-Las Vegas and Las Vegas City Councilwoman Lois Tarkanian are pushing to have the 10% excise tax monies directed to school districts to help fill their budget deficits. Debate on that issue is not likely to come up until the Nevada Legislature meets next year.
$15.5 million, the rest of the tax revenue, comes from the 15% percent tax on wholesale marijuana (both medical and recreational marijuana). The first portion goes to the Tax Department to fund admistration costs of the marijuana program. The next $5 million will be split among the local governments. The remainder goes directly to the state’s general education fund. The state’s budget expects the wholesale tax to generate approximately $22 million through the first year of sales. The department distributed the $5 million to local governments across Nevada in March, and it will send money to the state education fund at the conclusion of the fiscal year, June 30.