Marijuana economic impact report shows industry success
LAS VEGAS (KSNV) — A new economic impact report released by the Nevada Dispensary Association along with Department of Taxation shows the Marijuana industry had more success than expected its first year of sales.
“The industry is robust, vibrant, and successful,” NDA President Andrew Jolley said.
The report shows there were more than $500 million in recreational and medicinal marijuana sales combined in its first fiscal year, and that more than 6,000 employees work at marijuana establishments.
“The industry is growing very, very rapidly,” Jolley said. “I think we’ll be at 15,000 plus [jobs], within the next year or two.”
David Goldwater is a partner at Inyo Fine Cannabis Dispensary. He says the trajectory of the industry is pointed in a good direction.
“It has been better than expected. It shows that there is a robust demand for this product,” Goldwater said. “One of the biggest surprises for me was, I thought we’d open up and we’d have a bunch of young people in their 20’s and 30’s in here buying Marijuana. That hasn’t been true. Our average age in here is north of 40.”
Both experts hope that as the legal, green market continues to grow, the illegal black market will wither.
“The black market is still very much alive in our state,” Jolley said. “We would like to see that demand for Cannabis products channeled into the regulated, legal framework, where we have high quality tested products that pay taxes and generate revenue for the state.”
As the market continues to grow, Goldwater thinks the price for pot at dispensaries will go down a bit, which would benefit the industry and consumers.
“It’s starting to trend downward here as more supply enters the market, demand kind of, flattens out. So, yeah, we’re going to see prices go down for everybody, wholesale and retail,” Goldwater said. “The regulated market is operating very efficiently, in order to compete with that black market.”
In the first year, legal sales generated nearly $70 million in tax revenue, with $27.5 million going to schools, and $42.5 million to the state’s rainy day fund, according to the Department of Taxation.
Goldwater says the industry will continue to face challenges as it continues to progress, but with year on the books, he says year two looks promising.
“It’s been good for consumers, good for the business people, and it’s been good for the state,” he said.
