LAS VEGAS – Nevada cannabis tax revenue from legalizing recreational marijuana have far exceeded expectations and have surpassed the fiscal year-end projections by at least 25 percent, according to ABC News. Once the June sales have been tallied, experts say that recreational marijuana sales in the state will have earned more than $500 million in just one year.
The cannabis tax earnings on $500 million will net the state of Nevada about $70 million in tax revenue. The Department of Taxation data says that the state also broke records in May, earning $43.74 million, which surpassed the March record of $41 million.
The 15 percent wholesale pot tax on marijuana cultivators contributed $2.74 million to the state of Nevada. With the numbers surpassing the previous month's figures on a monthly basis, analysts expect June's numbers to do the same. Nevada made more than $3o million in tax revenue alone during the first six months after the state legalized recreational marijuana with sales exceeding $195 million.
The State of Nevada is the Golden Model for Recreational Legalization in the U.S. and Cannabis Tax Revenue
The State of Nevada Taxation Department Director William Anderson said to reporters that the state is now known as the golden model for other states aimed at legalizing the drug. “We are viewed by many others outside Nevada as essentially being the gold standard," he said.
Colorado only earned $114 million during its first months of legalization, making more than $80 million less than Nevada in six months. Washington state earned a total of $67 million during its first six months of legalization.
At least $25 million of the Nevada cannabis tax revenue will be allocated for the state's schools and $26.5 million of retail pot taxes will go into Nevada's rainy-day fund. The $25 million for schools will be divided into 17 different counties. At least $17 million will go to schools in Las Vegas. The analytical firm New Frontier estimates that the state's marijuana industry to be worth more than $622 million by the year 2020.
Adult-use marijuana was legalized in the state July 1 of last year. Recreational marijuana consumption is legal for people 21 years of age and up in Nevada. Pot consumers are allowed to possess up to one ounce of marijuana provided they have a government ID or driver's license.