A year after Nevada legalized recreational marijuana the state has found that demand far exceeded expectations.
The state collected more than $69.8 million in marijuana tax revenue over the past 12 months, about 140% more than it expected to bring in over the period, according to the Nevada Department of Taxation.
Dispensaries in the state sold $424.9 million worth of marijuana for the year with the last four months of the fiscal year being the most lucrative for sales.
The state's 10% retail marijuana tax brought in $42.5 million with the 15% wholesale marijuana tax adding another $27.3 million in revenue.
"Nevada's first year with a legal adult-use market has not only exceeded revenue expectations, but proven to be a largely successful one from a regulatory standpoint," the state's tax office said in a statement. "We have not experienced any major hiccups or compliance issues, and our enforcement staff has worked diligently to make sure these businesses understand and comply with the laws and regulations that govern them."
Pot stocks have outperformed the wider market in recent weeks. On Wednesday, Tilray Inc. (TLRY) - Get Tilray Brands Inc. Report shares rose 11% following its earnings release, while Canopy Growth Corp. (CGC) - Get Canopy Growth Corporation Report rose 1.2% and Cronos Group (CRON) - Get Cronos Group Inc. Report was up 7%.
The success of Nevada's legalized marijuana market is a good sign for cannabis legalization efforts around the country. Currently, nine states and the District of Columbia have legalized recreational marijuana and 30 states and the District have legalized medical marijuana use.
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