Nevada voters passed Question 2 last November allowing a 15% tax on the wholesale sales of recreational marijuana. Recreational sales, which are not expected to start until June or later, will be subject to the state’s sales tax and other individual municipalities.
Governor of Nevada, Brian Sandoval, wants to put a special tax on recreational marijuana sales much like Colorado’s working model. The Governor stated during his State of the State address that he is proposing a 10% special tax on retail sales of marijuana, similar to Colorado, the money would be going to public education.
Sandoval’s proposal will need to be approved by the Legislature that will be back in session next month. There is still time before the beginning of recreational sales to negotiate a tax deal.
Like many political decisions, the new tax proposal faces many differing opinions. People in support of the proposal are excited for the forward thinking statements and agree that the Governor is taking steps in the right direction for recreational marijuana. A ballot measure he was not supportive of before the election.
Opposing critics think that the proposed tax rate is too much for an already highly taxed product. Worries are that higher tax rates will drive consumers to buy on the black market instead of spending their money in dispensaries and stores.
It is too soon to tell what tax rate the state of Nevada will settle at for recreational marijuana but it is sure to be an issue we will keep a close eye on.
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