Nevada may end up becoming one of the largest cannabis markets in the United States.
The state may only be the 33rd most populous in the country, but because of Nevada’s large tourist population, Nevada’s industry has huge potential.
Voters approved adult-use legalization in November 2016 during the General Election by a significant margin.
On July 1, 2017 legal adult-use cannabis sales began and total sales and tax revenues have been climbing ever since, culminating in record totals in March.
March 2018 was a very good month for Nevada’s adult-use cannabis industry
Nevada adult-use cannabis sales topped $41 million in March, which is the largest monthly total for the first 9 months of legal sales.
The record sales total also resulted in the largest monthly tax haul to date for the state of Nevada. Tax revenues topped $7 million for March.
“March numbers continue to point to a strong likelihood that Nevada will close out the fiscal year this June with much more robust marijuana revenue collections than anticipated,” Nevada Department of Taxation executive director Bill Anderson said according to Las Vegas Review-Journal.
The previous month was previously the largest month for cannabis sales and the lowest month for sales was the first month that sales began (July 2017).
Breaking down March cannabis sales numbers in Nevada
Below are some of the highlights from March’s sales numbers:
- The Wholesale Marijuana Tax generated $2.99 million in March
- The Retail Marijuana Tax generated $4.10 million in March
- Half of cannabis sales were of cannabis flower
- 25% of cannabis sales were of concentrates
- 13% of cannabis sales were of edibles
- 10% of cannabis sales were for pre-rolls
If Nevada is like other states, the sales for non-flower products will trend upwards as time goes by.
Taxes are surpassing initial estimates
The state of Nevada originally estimated that its cannabis industry would generate $50.32 million dollars for the first fiscal year of adult-use sales.
With three months to go Nevada has already generated tax revenues of $48.97 million.
Nevada’s sales numbers pale in comparison to those of Washington and Colorado, but the state could surpass both of them due to a large number of tourists that visit the Silver State each year.
Nevada is the third most visited state by tourists, behind only California and Florida.
Nevada will likely never be able to compete with California, but Nevada tax revenues are already on the verge of surpassing Oregon.