The marijuana industry is just in its infancy, with many states still not allowing any legal sales of cannabis products and others limiting their use to only medical purposes. Yet many of the jurisdictions that have opened up their market to legal cannabis have seen huge amounts of interest, and the imminent opening of the Canadian market has investors excited that companies like Aurora Cannabis (NASDAQOTH: ACBFF) and Canopy Growth (NYSE: CGC) will be able to boost their sales dramatically.
Even as many U.S. investors look northward for the next major catalyst for further cannabis growth, the experience of jurisdictions that have already legalized the use of marijuana is an important indicator of whether trends toward greater acceptance are likely to continue. In particular, news from Nevada, which legalized pot for recreational use last year, shows just how lucrative the industry can be in generating tax revenue for state governments. Moreover, with the Silver State having just begun to tap into the cannabis market’s full potential, many see explosive growth in the state’s marijuana market in the near future.
first full year after marijuana was legalized for adult use in the state. The results were unexpectedly strong, with the agency pulling in $69.8 million from marijuana tax collections. That figure was roughly 40% higher than the expectations that the state had when it first moved to legalize adult-use marijuana.
Growth in the marijuana industry in Nevada gained momentum throughout the period, with the most recent months featuring the largest tax revenue. In June alone, taxes brought in $7.12 million, with the tax on marijuana retailers producing more than $4 million in tax revenue and the tax on wholesale growers adding the remaining $3 million. For the full year, retail taxes were responsible for about 60% of Nevada’s