Nevada is one of the 33 states in the U.S. where cannabis cultivation, possession, and use are legal. Ever since its legality, the state has seen a significant boost in marijuana market sales. Here are some facts about the state’s cannabis market.
Cannabis Market Facts
Cannabis Business Plan reports Nevada earned about $530 million from medical and recreational marijuana sales. This number comes from Nevada retailer sales in the span of a year since cannabis retail sales became legal in 2017.
In terms of income from marijuana taxes, Nevada earned $685 million according to official state tax reports in 2020. Of this figure, the adult-use or recreational cannabis market generated over $600 in revenue.
The earnings in this fiscal year are about a 7% increase from the previous period in total. On a monthly basis, 2020’s figures saw a 9% increase from 2019’s average monthly sales of $46 million to $50 million.
Nevada’s cannabis laws granting an early start to the state’s cannabis program accounts for these significant market figures. In addition, the state sees over 55 million visitors in Las Vegas annually. This tourism factor drives cannabis sales just as much as cannabis products’ retail sales and tax revenue.
Here is a summary of Nevada’s cannabis tax rates:
|Marijuana Sale||Tax Rate|
|Medical Marijuana||4.6% (per statewide retail sales tax)|
|Recreational Marijuana||4.6% (per statewide retail sales tax)10% cannabis excise tax|
|Wholesale Marijuana||15% marijuana excise tax|
Marijuana tax rates in Nevada are specific to the substance’s intended use. In general, the state imposes a 4.6% statewide retail sales tax on every purchasable product. This tax is included in marijuana purchases for medical and recreational use.
Medical marijuana purchases are only subject to the statewide retail sales tax. Every dispensary you purchase cannabis products from may adjust prices accordingly. For recreational use or adult-use retail purchases, marijuana products are subject to an additional 10% cannabis excise tax. This brings an out-the-door total of about 15% taxes.
Meanwhile, wholesale sales and transfers of marijuana products come with an imposed 15% marijuana excise tax. The 4.6% statewide retail sales tax no longer applies to wholesale purchases.
You can visit the Nevada Department of Taxation website for more information about the state’s taxation laws.
Cannabis Market Legality
Here is a timeline of cannabis legality in Nevada:
|2000||Nevada voted to legalize medical cannabis|
|2013||Nevada Legislature allowed medical marijuana dispensaries|
|2016||November 8: Nevada voters approved ballot Question 2, allowing up to one-ounce recreational cannabis consumption|
|2017||January 1: Regulation and Taxation of Marijuana Act took effectJuly 1: Legalized recreational cannabis sales|
Medical marijuana has been legal in Nevada since 2000 when Nevada voters legalized medical cannabis on the ballot. The state legislature passed a law in 2013 that allowed medical cannabis dispensaries in Nevada.
In 2016, Nevada voters approved ballot Question 2. This approval gave adults legal protection to consume up to an ounce of cannabis products in the state. This ability was included in the Regulation and Taxation of Marijuana Act’s provisions.
Nevada’s marijuana act took effect on January 1, 2017. In the same year, the state legalized recreational cannabis sales on July 1. Cannabis retailers were allowed to seek cannabis licenses to legally distribute cannabis products within the state.
Nevada has five types of cannabis licenses:
- Adult-Use Distributor License
- Medical Dispensary / Retail Marijuana Store License
- Independent Laboratory Testing Facility / Marijuana Testing Facility License
- Product Manufacturing Facility License
- Cultivation Facility License
Nevada issued 659 final medical and adult-use cannabis licenses and 245 provisional or conditional cannabis licenses. As of 2019, there are at least 125 recreational cannabis shops legally operating in Nevada. Currently, the state is not accepting new applications for cannabis licenses.
Latest Marijuana News: Nevada Cannabis Lounges
The latest cannabis industry news in Nevada is the legalization of cannabis lounges. This milestone comes after just four years since the state legalized marijuana sales. Cannabis lounges are places where locals and tourists can consume cannabis products in designated salons.
The cannabis market in Nevada looks promising. With the state’s early start in the marijuana business, recently legalized cannabis lounges, plus the millions of visitors Las Vegas sees annually, retail sales can only rise. When the state decides to open the application period for cannabis licenses, existing figures may be evidence of an even greater rise in marijuana sales in the state.
Visit TNM News for more comprehensive marijuana news in every state in the U.S. where cannabis is legal. Our coverage ranges from tax laws in each state to the best places to enjoy recreational cannabis, whether in the United States or abroad.