Nevada is a new-comer to the developing marijuana industry. Still, the state has managed to produce one the most profitable markets in the country. Retailers have sold more than $195 million in cannabis since opening it’s adult-use market. As a result, the state has produced $30 million in tax revenue.
Surprisingly, in just six months the Nevada market has outpaced other cannabis-friendly states such as Colorado. Charging a 15 percent tax on wholesale product and a 10 percent tax on retail sales, the state nearly generated $3.7 million in tax revenue for July 2017 (the first month).
Tax revenue had increased to $5.84 million by October 2017. New Frontier, a cannabis analytics firm says the Nevada market could be worth an upwards of $622 million by 2020.
Researchers attribute the immense growth of the market to Las Vegas. Interestingly, McCarran International Airport has recently installed 20 “amnesty boxes” on its premises. The boxes allow travelers to dispose of their cannabis before boarding planes. Nevada law prohibits cannabis on airport premises, so we suggest you finish your “paper planes” or equivalents before you reach the airport.
States such as Connecticut are strongly considering legalizing marijuana in efforts to balance state budget. While Governor Dannel Malloy is against full legalization, he supports legalization for recreational use if it helps balance the budget.
There has been a long-standing debate as to how marijuana tax revenue should be spent. Nevada has opted to use the funds for education. Colorado is already using their wholesale marijuana tax revenue for public school funds as well as industry oversight, substance abuse treatment and youth drug prevention.
Clearly, marijuana can have positive effects for the states who legalize it. However, marijuana still remains illegal at the federal level. Only time will tell what can happen in terms of full legalization.
Most states are intrigued by the idea of tax revenue, but the real question is: should people continue to be put in jail ? or is legalization cause concern for public safety?