Nevada reports impressive numbers for its second month of recreational marijuana sales. Numbers don’t lie, especially from Nevada’s Department of Taxation.
During the month of August, dispensaries reported selling more than $33 million of medical and recreational marijuana. Recreational marijuana was legalized for the state in September, when it brought in a record-breaking $27 million surpassing the states of Colorado, Washington and Oregon during their first month. In month two of recreational sales, there was a 22% increase or $6 million generated in sales. This allowed the Department of Taxation to deposit somewhere around $5 million in tax revenue into the states emergency fund.
“I think it is a good indication that there was a large, pent-up demand that was being served by the black market,” said Andrew Jolley, president of the Nevada Dispensary Association.
Governor Brian Sandoval had previously believed that Nevada would generate about $100 million in taxes and fees during a two year period. But now, the state’s officials are anticipating a significantly larger number closer to $120 million given the current sales.
August’s numbers confirm that Nevada outperformed Colorado by more than double during its second month of operation and nearly seven times more than Washington. It is unknown how Nevada will measure up to California, whose market could be worth $5 billion, when it commences recreational legalization early next year.
Senator Tick Segerblom is one of the main legislative powers in Nevada that is fighting for marijuana reform laws. Senator Segerblom stated that at first, he was apprehensive that recreational marijuana sales would start to weaken after seeing such great numbers for its first month. But, after seeing August’s numbers he now feels the demand has shifted from the black market to the legal market and does not anticipate the numbers dropping anytime soon.
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