When Nevada voters legalized cannabis for adult use in 2016, they did so not just with an eye toward the social and civic gains of legal weed, but also toward generating revenue through state taxes. Prior to the legalization vote, advocates made the case that a regulated cannabis industry would generate millions of dollars in tax revenue for Nevada schools. Now, just over a year into legal retail sales, Nevada is expected to close out the year with $70 million in tax revenue from weed.
Nevada’s Tax Revenue From Legal Cannabis Is Surpassing Everyone’s Expectations
Before retail sales began in Nevada on July 1, 2017, lawmakers modified the tax structure for the state’s cannabis industry. The changes are a major reason Nevada’s cannabis tax revenue is surpassing expectations.
In Nevada, marijuana taxes change depending on whether a sale goes to a medical or a retail consumer. First, cultivators pay a 15 percent excise tax on wholesale cannabis sales. On top of that, retail stores pay a 10 percent excise tax on each sale to a retail customer. However, if the sale goes to a medical customer, the 10 percent excise tax does not apply to the retailer. Finally, both medical