Nevada Cannabis Industry Rings Up Nearly $1 Billion in Yearly Sales

Nevada’s cannabis industry will generate more than $965 million in taxable sales in fiscal 2022, down slightly from the previous year’s record $1 billion. The regulated sale of marijuana has generated approximately $150 million in cannabis tax revenue, which provides significant funding for the state’s public school system.

Nevada Cannabis Compliance Commission Released amount of sales Last week, the state’s regulated marijuana industry saw just over $965 million in taxable wholesale and retail sales for fiscal year 2022 from July 1, 2021 to June 30, 2022. is shown. The year before taxable cannabis sales exceeded $1 billion.

Tiana Boehner, spokesperson for the Nevada Cannabis Compliance Commission, said domestic and global economic factors were partly responsible for the decline in cannabis sales compared to last year. In 2020, cannabis sales surged in legal markets across the country as the coronavirus shutdown took hold. Many states have designated cannabis retailers and producers as essential businesses, and the ability to stay open while many others have been forced to close has helped boost sales. I’m buying

“During the first half of the year, the Nevada cannabis industry experienced a decline in retail sales, a trend consistent with other mature cannabis markets across the country. As consumers adjust their spending habits and priorities, cannabis businesses are immune to inflation and shortages of disposable income.” boner wrote by email to Nevada Independent.

The decline in sales was due to the easing of restrictions put in place due to the COVID-19 pandemic at a time when consumers were eager to return to family gatherings, restaurant dining and other public activities. continued. During the shutdown, cannabis sales in legal markets soared, with most states reporting record-breaking sales. But in March, cannabis market data analytics firm BDSA reported that sales appeared to be back to pre-pandemic levels.

“Although most legal cannabis markets experienced a decline in sales in the second half of 2021, the global cannabis market is poised for rapid growth in 2022, driven by strong sales in emerging markets in the United States, and steady growth in Canadian and international markets. in Mexico and Germany said in a statement quoted by Newsweek.

Nevada Cannabis Tax Fund Education

Revenue generated from taxable cannabis sales in Nevada totaled approximately $152 million in fiscal 2022. This includes his $89 million from a 10% excise tax on adult retail sales and another $63 million from a 15% tax on wholesale recreational and medical marijuana sales. . Tax revenues, net of state-borne regulatory costs, go toward his K-12 education budget in Nevada, bringing her $147 million in public school totals for the 2022 school year.

But cannabis businesses say state tax and regulatory costs are overwhelming, especially when combined with other economic factors, including declining sales and inflation. and cost licensees $111 per hour for regulatory tasks performed by Commission staff, including mandated inspections, audits, and communications. Some fees have recently been lowered, but Will Adler of the Sierra Cannabis Coalition said the system could backfire, even if the proceeds of time and effort go to education. .

“The idea of ​​extra fines and surcharges adds extra benefits to the education pile. I think it’s misplaced.” He said“At this point, additional fines and fees could be trying to kill the golden goose that is the cannabis industry.”

Judah Zakalik, chairman of cannabis company Congerium LLC, said in a telephone interview. Nevada Independent In July, high taxes will favor the illegal marijuana market over the regulated cannabis industry.

“If taxes are too high, I think it will drive up prices and make the black market even more prosperous,” Zakharik said. “It’s a big deal because it’s a legitimate businessman competitor that is very difficult to compete with.”

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