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LAS VEGAS (AP) — Nevada legislative auditors report that poor bookkeeping processes a lack of oversight of the legal marijuana industry suggest the state is losing potential tax revenue.
The Las Vegas Review-Journal reports that auditors found that data from many cultivators’ and dispensaries’ tax returns didn’t match with inventory tracking data.
The audit report said that means the Department of Taxation isn’t able to verify the businesses’ tax returns and that those “did not always appear to be correct.”
According to the audit report, the state collected about $70 million of marijuana excise taxes during the 2018 fiscal year and that a sampling of returns suggested “a potential unpaid tax liability of over $500,000” during a six-month period.
Tax Department Director Melanie Young said the department plans to make changes recommended by auditors.