Marijuana sales in Nevada declining because supplies are running low

Nevada recreational marijuana sales are declining because they’re still running out, according to that state’s taxing authority.

An August 10 written determination by Nevada Dept. of Taxation Executive Director Deonne Contine, the agency found recreational cannabis sales are down 20-30% “because they simply cannot meet demand.”

“The variety of products being offered has declined as much as 65% due to the inability to have products picked up and delivered by distributors,” the filing also said.

Contine wrote there is a concern people may return to purchasing recreational marijuana on the black market if retail stores are unable to meet demand. Colorado has recorded 5% sales increases every month since it began recreational sales in 2014, and the agency believes Nevada could do more because it has a larger tourism industry.

Since recreational cannabis sales were allowed in Nevada, stores have recorded brisk business. But because of issues getting product distributed to stores, shelves have started running out. Retailers are demanding delivery seven days a week, eight to 10 times a day. Right now, deliveries take seven to 14 days, the report said.

The Nevada Dept. of Taxation has passed emergency regulations for marijuana distribution. The state is also in the midst of a legal battle with liquor distributors over who can supply marijuana, with court hearings ongoing.

Right now, the closest licensed recreational marijuana dispensary to Utah is in Mesquite, a 45-minute drive from St. George. West Wendover’s City Council recently approved an ordinance in support of establishing a licensed dispensary. The city will soon begin taking bids for a facility with a potential opening by the end of this year.

West Wendover is about 90 minutes from Salt Lake City.

Read the Nevada Dept. of Taxation’s written determination here: