63°F
weather icon Clear

Nevada has massive first month of marijuana sales

Updated September 28, 2017 - 5:33 pm

Nevada dispensaries raked in more than $27 million during the first month of recreational marijuana sales, generating more than $3.6 million in taxes, according to figures released Thursday by the Nevada Department of Taxation.

How does that stack up against the other states with legal marijuana?

It’s nearly double.

Colorado and Oregon each sold about $14 million in marijuana during their respective first months of sales. Washington sold $3.8 million in its first month.

“We came out of the gate like a shotgun,” said Matt Morgan, CEO of Reef Dispensaries.

Morgan said that, even three months into recreational sales, Reef’s dispensary located behind the Fashion Show Mall has a line inside the store at nearly all times and outside about 40 percent of the time.

Nevada’s market will only grow, he said.

“I still don’t think everyone understands that it’s recreational in Nevada yet,” Morgan said.

For Nevada, $2.7 million in tax revenue came from the 10 percent special excise tax on recreational marijuana, all of which is destined for the state’s rainy day fund.

That falls right in line with Nevada’s marijuana sales estimates, even though there were no state projections for July because of uncertainty about when stores would begin sales. State officials have projected that special sales tax will generate $63.5 million over the first two years of sales.

“Although July was not accounted for in our projections, the first month’s revenues demonstrate that the state’s structure appears to be collecting at a rate consistent with the consensus forecast.” said Mari St. Martin, spokeswoman for Gov. Brian Sandoval.

Another $974,060 came from the 15 percent wholesale tax levied on both medical and recreational marijuana when it is transferred between the grower and the seller.

That was significantly more than the $548,000 the state projected for July. If those figures stay consistent, the wholesale tax would generate about $23.4 million for the fiscal biennium.

Tax Department spokeswoman Stephanie Klapstein said the state expects that excise tax to grow over the next two years as more cultivators get licensed and begin to operate.

The state has also pulled in $6.5 million in marijuana license and application fees.

Those revenues will be used to cover the administrative costs to regulate the industry for the Tax Department and local governments, and all remaining funds go to the state’s public education fund.

Recreational sales started on July 1, and the state has issued 250 recreational marijuana licenses thus far, 53 of them to dispensaries.

Contact Colton Lochhead at clochhead@reviewjournal.com or 702-383-4638. Follow @ColtonLochhead on Twitter.

Don't miss the big stories. Like us on Facebook.
Politics Videos
Tomi Lahren Speaks at UNLV - VIDEO
Fox News contributor and UNLV alumna Tomi Lahren returned to campus Wednesday night for a speech, titled “Stay Triggered,” that drew an auditorium of supporters as well as a group of protesters outside. (James Schaeffer/Las Vegas Review-Journal)
Bernie Sanders released from Las Vegas hospital - VIDEO
Sen. Bernie Sanders, I-Vt., issues a statement after he was released from Desert Springs Hospital Medical Center on Friday, Oct. 4, 2019, after suffering a heart attack earlier in the week. (Bernie Sanders via Twitter)
Democratic presidential candidates speak on impeachment - VIDEO
Democratic presidential candidates attending the March for Our Lives/Giffords Gun Safety Forum in Las Vegas comment on possible impeachment proceedings. (Las Vegas Review-Journal)
Joe Biden Las Vegas Rally Highlights - Video
2020 presidential candidate, Joe Biden, came to Las Vegas to talk guns, climate change and the Ukranian-Trump scandal. Biden was interrupted by a protestor who sat amongst supporters at the rally and continued with his speech. (Angus Kelly & James Schaeffer / Las Vegas Review-Journal)
Joe Biden comments on Trump and his campaign efforts in Nevada - Video
After an impeachment inquiry was opened on Donald Trump, Joe Biden talks with Review-Journal politics reporter Rory Appleton about Trump and his campaign in Nevada. (Angus Kelly & James Schaeffer / Las Vegas Review-Journal)
Bernie Sanders Unveils Affordable Housing Plan - Video
Bernie Sanders sits down with the Las Vegas Review-Journal to talk about his new affordable housing plan he unveiled at Plumbers & Pipefitters.
Jim Marchant talks gun control and Dreamers - Video
Republican Candidate for District 4 Jim Marchant talks about gun control and immigration policies. (Las Vegas Review-Journal)
Hurricanes, Gender, and Science in the Press
Imagine if the mainstream media’s current hurricane-sized obsession with scientific accuracy applied to gender.
Cory Booker on college tuition and minimum wage
Cory Booker talks on the RJ Politics podcast about college debt, informing workers about their rights and livable wages.
Nevada Politics Today: Teacher raises - VIDEO
Jason Goudie, the chief financial officer for the Clark County School District, talks about teacher pay and raises. (Las Vegas Review-Journal)
Media's Double Standard On Incitement And Trump - Video
Over the weekend, an Elizabeth Warren-supporting socialist who opposed gun violence used a rifle to commit a mass murder in Dayton, Ohio. The media has downplayed that aspect of the tragedy.
Project Our Care Tour Kicks Off In Las Vegas
U.S. Rep. Dina Titus joined health care advocates and local residents as part of Protect Our Care’s nationwide bus tour kick off in Las Vegas on Monday, August 5, 2019. (Mat Luschek / Review-Journal)
Bernie Sanders talks about guns, response to El Paso shooting
Sen. Bernie Sanders spoke about his response and continued policy ideas about guns and gun control to the Review-Journal after a panel of other topics. (Rachel Aston/Las Vegas Review-Journal)
Pete Buttigieg On Gun Control And Climate Change - Video
Pete Buttigieg talks about his campaign for the 2020 election and how Nevada is a vision of what the future can be.
Beto O'Rourke speaks in Las Vegas
Presidential candidate Beto O'Rourke spoke to supporters at the East Las Vegas Community Center in Las Vegas, Thursday, Aug. 2, 2019. (Las Vegas Review-Journal)
THE LATEST
More tainted marijuana found in Las Vegas

The Nevada Department of Taxation on Monday issued a health notice after batches of marijuana sold from four Las Vegas dispensaries were found to have fungus, bacteria and high levels of mold and yeast.

Nevada marijuana official placed on leave

A top Nevada marijuana official who has faced criticism over his conduct during the state’s cannabis licensing process was placed on administrative leave last week.

Nevada marijuana license ruling could come next week

A Nevada judge said Friday she expects next week to finish hearing a case involving dozens of companies that lost bids to open new retail pot stores asking her to stop the state from licensing more marijuana businesses.