Nevada’s legal cannabis industry generated nearly $1 billion in total output activity for the state’s economy in its first year of legalized recreational sales, a top industry group said Friday.
Cannabis brought at least 8,300 full-time jobs to Nevada, an industry association said.
The state recorded $529.9 million in taxable cannabis sales during the fiscal year ending June 30. (Adult-use cannabis sales began on July 1, 2017.) Of that, $424.9 million were recreational sales of the plant, and the other $105 million in sales came from the state’s nearly 16,000 medical cardholders.
With $989.7 million in total contributions to the economy—including auxiliary businesses that supply, outfit, and shelter cannabis companies—the industry also brought 8,300 full-time equivalent jobs to the state, the Nevada Dispensary Association said. Of that sum, the industry generated $443.3 million in direct, indirect, and induced labor income.
“I’ve been dreaming for this day for a long time, and honestly I didn’t think we’d get here,” said John Restrepo, principal of Las Vegas-based RCG Economics, the firm that conducted the economic analysis for the NDA. “It was a strong year.”
With about 6,000 direct industry jobs, cannabis in the Silver State has grown to account for more jobs than Nevada’s utilities and residential construction industries, and is now on par with the number of jobs in the state’s accounting and payroll industries, Restrepo said.
Serious Tax Revenue Coming In
State officials announced earlier this year that Nevada raised $69.8 million in tax revenue from cannabis during the 2017–2018 fiscal year. The state maintains a 10% excise on recreational cannabis sales and a 15% duty on wholesale shipments of cannabis from cultivators and producers to retail stores.
But Restrepo warned that taxation of the plant will play a “significant” role in marijuana’s growth. Average tax rates exceed 33%