LAS VEGAS, NV — According to a recent statement by the Nevada Dispensary Association (NDA), Nevada’s cannabis industry has paid a staggering sum of $109 million in taxes and fees for fiscal year 2019.
In addition, NDA estimates roughly $99.18 million in tax revenue has been generated – a marked increase from $74.7 million that was raised in tax revenue last year. Close to $9.8 million in fees have been collected in 2019 thus far.
The increase in taxable revenue is certainly tied to the fact that Nevada’s cannabis industry continues to grow at a rapid rate. Sales revenues have increased by approx. $100 million since 2018.
Much akin to Colorado’s move to inject the majority of cannabis tax revenues into public education, Nevada’s policy makers have opted for the same system. At the end of the fiscal year tax and fee revenues are added to the state Distributive School Account.
The continuous growth of taxable cannabis market revenue hasn’t come without issue; which have been pointed out in a recent audit of the state’s books. According to the audit report, Nevada had missed close to $500,000 revenue due to clerical errors. One major issue has been a lack of trackable or plainly inaccurate data in the state’s seed-to-sale tracking software, METRC (Marijuana Enforcement Tracking Reporting Compliance).
Quoting the report, “Data in the METRC system didn’t match with the totals reported on tax returns in 72 percent of the returns that were examined — 86 of 120 of the returns tested.” It is obvious that as Nevada’s cannabis industry continue to thrive proper adjustments to the state’
The issues Nevada is experiencing shouldn’t take away from the fact that a new source of tax revenue was created with the legalization of cannabis in 2018. As it turns out – the money has been helpful after all.
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