Cannabis has been legal to buy and smoke by people without any medical condition since July 1, 2017, and sales of legal weed are through the roof. Storey County students will benefit from Nevada’s legal cannabis smokers because money left over after costs and rainy day funds are filled will go to fund Nevada’s education system.
The state’s legal cannabis shops sold $27 million in marijuana during the month of July, according to the Nevada Department of Taxation – “good numbers” consistent with the state’s projections to rake in $120 million in cannabis-related tax revenue over the next two years, Department of Taxation’s spokesperson Stephanie Klapstein told The AP.
Nevada Cannabis Sales Set Records.
Nevada’s sales set the record for first-month sales nearly double what other states sold in the first month. Nevada cannabis sales netted 3.7 million dollars in tax revenue. With sales taxes of Medical Cannabis coming in at $621,785 for June 2017, it is clear to see that recreational sales will drive the tax numbers in years to come.
The legal cannabis law allows for triple taxation; retailers buying from wholesalers pay 15% while consumers bay an excise tax of 10% on top of the standard 8.625% sales tax we all pay for stuff. Projections suggest Nevada is will collect $116 Million in weed taxes over the next two years.
Application and license fees are generating millions of dollars as well. So far 333 cannabis businesses have paid $5,000 apiece in application fees and license fees range from $10,000 to $30,000. Nevada has made $6.5 million from these application and license fees to date.
Nevada’s Kids Win Too!
Republican lawmakers gnashed teeth over the fact that the sale of legal cannabis will benefit Nevada’s educational system. These numbers stoke out Nevada educators whose budgets are getting crushed.
However, Clark County School District Superintendent Pat Skorkowsky is kind of bummed that Clark County’s sales wouldn’t stay in the nations fourth largest school district. Skorkowsky is dealing with budget cuts after discovering they have a shortfall of some $60 million this year.
“I can’t grow silver and gold in Clark County,” Skorkowsky said in August, referring to other counties’ abilities to draw revenue from mining operations. “That revenue collected here could have impacted our students.”
In Clark County, they want to keep the revenue at home. But the tax revenue will trickle down to Storey County’s Schools eventually.
Storey County Commissioners held tightly to the proven failure of prohibition by nixing legal cannabis sales late last year. By losing out on this robust revenue stream, Storey County continues to think hiding their heads in the sand is the best way to look forward.