Nevada cannabis sales saw a 20 percent increase from fiscal year 2018 to 2019, reaching $692 million, according to an RCG Economics report commissioned by the Nevada Dispensary Association. The state collected $172 million from cannabis-derived excise and sales taxes, and industry licensing fees.
The report estimates that there are 8,200 jobs in Nevada working directly in licensed cannabusinesses and another 2,000 jobs created by the ancillary industry.
Riana Durrett, executive director of the NDA said that while the coronavirus pandemic “may result in lower than projected sales and collections” the figures are “helpful to know what the industry is capable of accomplishing and contributing to the state, given the right conditions.”
John Restrepo, the economist that prepared the report, opined that, in the cannabis space, “supply and demand is less of a factor than regulatory conditions.”
“The cannabis industry can be greatly impacted by the tax and licensing structure and the illegal market, and missteps in overtaxing or overregulation can drive people into the illegal market and reduce tax revenue, unlike many other industries.” – Restrepo in a statement
The report estimates that by 2024, Nevada sales could total $956 million leading to state tax and fee collections of $327 million under current regulatory conditions.
The authors note that the report was prepared – and its projections based on – pre-coronavirus conditions and the projections “would likely fall short, especially given a drop in tourism and loss of sales in March and April,” which are “typically big sales months for Nevada dispensaries.”
Both medical and adult-use dispensaries in Nevada were allowed to remain open during the state’s stay-at-home order albeit with social distancing protocols in place.
Get daily cannabis business news updates. Subscribe
End