Just one year following the enactment of Nevada’s cannabis industry, demand has surpassed predictions. Recreational cannabis sales in Nevada officially started on January 1, 2017. Over the last 12 months, in excess of $69.8 million was accumulated by the state in cannabis tax revenue.

The Nevada Department of Taxation says that this is 140 percent more than initial estimates.

A whopping $424.9 million worth of cannabis was sold inside statewide dispensaries in 2017, with the biggest sales figures noticeable in the last four months of the fiscal year.  

Nevada’s cannabis retail tax has exceeded expectations

Under Nevada’s cannabis laws, 10 percent retail tax is applied to all cannabis sales. In total, the Silver State pulled in $42.5 million last year.  Add to that the 15 percent wholesale cannabis tax imposed on Nevada’s cannabis and the state revenue swells by an additional $27.3 million.  

“Nevada’s first year with a legal adult-use market has not only exceeded revenue expectations but proven to be a largely successful one from a regulatory standpoint,” said the executive director of the Nevada Department of Taxation, Bill Anderson, in a news release.

“We have not experienced any major hiccups or compliance issues, and our enforcement staff has worked diligently to make sure these businesses understand and comply with the laws and regulations that govern them.”

Cannabis legalization in the U.S. has helped Nevada’s legal weed industry thrive

At the current time, nine U.S. states and the District of Columbia have legalized the green plant for adult use, whereas 30 states and the District have passed medical cannabis laws.

Countrywide cannabis legalization has contributed to the victory of legal weed in Nevada, where the market harvested a healthy cash crop of $529.9 million overall at the close of the fiscal year, concluding on June 30.

An impressive $424.9 million of this amount was accrued from recreational cannabis sales.

Anderson claimed that the state did not encounter any delays or problems with compliance, regardless of the fact that Nevada’s cannabis program launched prematurely in July of last year.

Revenue earned through Nevada’s cannabis industry is expected to grow

Nevada’s cannabis revenue figures are on-par with those outlined in the Marijuana Business Factbook 2018. This annual resource for information and statistics on the legal cannabis industry estimated that recreational sales would pull in $500 million to $600 million in the 2018 calendar year.

If Anderson’s predictions are correct, Nevada’s cannabis industry will continue to rake in the cash for the rest of the year.

At the close of June, a total of 64 medical cannabis dispensaries were in operation within the state. Among those dispensaries, 61 also possessed licensing to legally sell cannabis for adult-use. With a license of this kind, dispensary owners have the advantage of targeting a much wider market and, consequently, earning more money for the weed-friendly state.