Nevada’s first year of recreational marijuana brought in more revenue than expected.
Sales topped $530 million, exceeding expectations by 40 percent and bringing in about $70 million in tax revenues.
But taxes aren’t the only economic indicator of how the industry is doing, which is why the Nevada Dispensary Association commissioned a report to get a more comprehensive look at the industry.
Riana Durrett is the executive director of the association. She told KNPR’s State of Nevada that the industry wanted to look at more than just the state tax revenues. They wanted to know what other taxes and fees were being collected along with job numbers and general economic benefit.
John Restrepo with RCG Economics conducted the study.
He said it showed that the industry is “doing pretty well” overall right now, but it has the potential to be a major industry.
“It’s got a great potential to be a very strong industry for Nevada,” he said, “And it is a very important part of the economic picture both from an economic standpoint and from a fiscal standpoint on the taxes side.”
Restrepo said that currently more than 8,000 jobs are connected to the industry both directly and indirectly but by 2024 the number of jobs could be closer to 10,000.
In addition to jobs, the industry offers good benefits and above average paycheck, which adds to the overall Southern Nevada economy.
But unlike Washington or Colorado, Nevada’s strong tourist economy could push it to the top of the list for marijuana sales.
“This large-scale tourist market we have could make it a leading market in the country,” Restrepo said.
Restrepo said besides our tourism industry Nevada has potential when it comes to medical marijuana research. He said the state’s higher education system should become a leader in research, which will bring in even more economic development.
However, he warned that overtaxing the industry could push people back into the black market.
Durrett said the industry wants to pay taxes but there needs to be a balance.
“I think we’ve found kind of a sweet spot,” she said, “Anything higher and you would probably see a mass exit to the black market.”
Restrepo believes the tax issue will be looked at again by local and state governments next year.
Riana Durrett, executive director, Nevada Dispensary Association; John Restrepo, principal, RCG Economics