(Sarah Downey) – State regulators report that a record amount of tax revenue from marijuana sales was collected by Nevada in October.
The $9.8 million in marijuana tax revenue represents a best for the state, according to figures from the Nevada Department of Taxation, which regulates the industry.
The total is the largest amount recorded since recreational sales became legal in July 2017, is more than $1 million higher than in September, and represents an increase of roughly $1.6 million compared to October 2018.
In addition to a 15 percent wholesale cultivation and production tax, the state collects a 10 percent excise tax on retail sales.
“The cannabis industry appreciates its role as a source of tax revenue for the state and will continue to work with regulators to ensure that revenue does not see dips as it has in other states,” said Riana Durrett, executive director of the Nevada Dispensary Association. “Some states have seen significant revenue drops due to over-licensing and competition with the illegal market.”
In a report posted on the website of Business View magazine, Durrett wrote that as part of its government affairs initiatives, NDA recently provided “testimony to the Governor’s Advisory Panel in advance of Assembly Bill 533 becoming law, which calls for the creation of a Cannabis Compliance Board (CCB) and a Cannabis Advisory Commission (CAC). Modeled after Nevada’s world class Gaming Control Board, the CCB will include five experts without pecuniary or financial interests with experience in fields ranging from finance/accounting to law enforcement, medicine, compliance, and cannabis.”
Cannabis sales in Nevada in fiscal 2019 reached $639 million, a 20 percent jump over fiscal 2018’s sales of $530 million.
The October tax revenue collection total was aided by a strong month for sales in Clark County, which registered a total taxable sales revenue figure of $50.7 million, an increase from $46.8 million for September.