Nevada Recreational Weed Tax Effects Chronic Pain Patients

Nevada Recreational Weed Tax
Nevada’s recreational marijuana tax is continuing to provide increasing tax proceeds for the state. It hit a new high for the month of October, which is the fourth month of taxes for Nevada’s recreational weed program. October sales hit more than $5.8 million, including a 15 percent tax on wholesale transactions in both the medical and recreational marijuana fields. It also included a 10 percent excise tax applied to marijuana sales that were recreational. In September, sales were around $4.7 million and August saw sales of around $4.8 million, while the inaugural month of July saw sales of $3.6 million. This means the total proceeds is around $19 million.

A spokesperson for the Nevada tax department said that they were pleased at the close adherence to projections and admitted that they were also a little ahead of most projections. October figures for both taxes were all-time highs. The wholesale tax is applied to cultivation and production in Nevada, which then transfer their product to local stores. This tax was $3.8 million in October while the excise tax equaled right around $2 million.

Nevada’s governor, Brian Sandoval, said his office projected that the eventual average tax revenue for marijuana between July 2017 and 2019 would be about $5 million per month. The current projections for the first six months are much less than average, but higher revenues for future months could raise it. The office is hoping that the last six months of the period in 2019 will bring in the most revenue.

Tick Segerbloom, a Nevada State Senator in Henderson NV, said that the early numbers give reason to be optimistic. Segerbloom advocated for the Nevada marijuana legislation. He also believes that tax revenue per month will be over $10 million in 2019. He stated that tax numbers will only continue to grow and that there will be a lot more sales as the program goes forward.

The revenue from the wholesale marijuana tax will be put towards government regulation of the marijuana industry and anything left will go towards schools. Excise tax revenue will go into the Nevada Rainy Day Fund.

Along with taxes on buying weed, Nevada’s department of revenue also made about $6.5 million on licensing fees for businesses wanting to sell marijuana