LAS VEGAS – PRESS RELEASE – Market trend analysis and economic research experts, RCG Economics, presented a report commissioned by the Nevada Dispensary Association (NDA) during a livestream event broadcast on Wednesday, May 13. The report, presented by John Restrepo of RCG Economics, highlighted the revenues and other important economic effects the cannabis industry has in Nevada in fiscal year 2020, as well as projections going forward.
In fiscal year 2019, Nevada collected $172 million in excise tax, sales tax, and licensing fees. Total taxable sales for 2019 was $692 million, a 20 percent increase from fiscal year 2018. The number of jobs in the cannabis industry was gathered through a survey administered through NDA members and contacts. The report estimates 8,200 jobs working directly in licensed cannabis establishments and an additional 2,000 ancillary jobs created by the industry.
The report prepared projected that by 2024, the collection of excise tax, sales, tax, and licensing fees will be as high as $237 million with total sales at $956 million. However, the report and projections were based on pre-COVID-19 conditions and thus the projections going forward would likely fall short, especially given a drop in tourism and loss of sales in March and April, typically big sales months for Nevada dispensaries.
“Although COVID-19 may result in lower than projected sales and collections, it is helpful to know what the industry is capable of accomplishing and contributing to the state, given the right conditions,” said Riana Durrett, executive director of the NDA.
“Unlike other industries, supply and demand in the cannabis industry is less of a factor than regulatory conditions,” said John Restrepo, the economist that prepared the report. “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.”