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It was only a day before that Nevada was about to hit the deadline, when the lawmakers of the state finally reached an agreement on the whole cannabis tax situations. Regardless of the fact that they delayed it to the last date, we’re happy they at least reached a deal prior to the deadline.
The deal that Nevada lawmakers made will allow the state to spend much of the revenue from the cannabis taxes on public education. The deal also finalized the cannabis tax rate that the people of Nevada will be paying. This measure was passed by the Senate an hour before midnight. The imposed taxes include a 15% tax on those who grow cannabis while the sales and distribution personnel will have to pay a 10% tax to Nevada. There are high chances that Governor Brian Sandoval will approve it.
The reason why the chances are such high is that the taxes proposed are more or less the same as to what the Republican governor himself wanted. There is simply no doubt in the fact that the cannabis industry will be worth billions of dollars in the coming years—something the US federal government should look into to realize how beneficial the newborn industry is.
In the case of Nevada, it is estimated that in the coming two to three years, the revenue from its cannabis industry will boost to a point where it would be able to fund around US $20 million in order to assist Nevada’s Opportunity Scholarships. This is in addition to the US $25 million in revenues that will go to the University of Nevada and the UNLV depending on the funds they receive from private donors.
It is funny that at the beginning, Republicans actually refused to support any budget if it wouldn’t fund Educational Savings Account. This is apparently why they had also been withholding votes when it came to taxation related to cannabis.
Senator Julia Ratti spoke on the matter and said that a great way to go about it would be to put the cannabis taxation revenue into rainy day funds. This is, of course, depending on how far the session has gone. Katti further went on to state that in case they want to fund education in the state this year, the state would have to reuse the K-12 budget. This budget, however, is already passed and is on the governor’s desk right now. According to Julia Ratti,
“I think it’s a really good move to make sure the state regains some of its fiscal stability.”
For Ratti, Nevada’s cannabis framework for cannabis taxation is quite rational. In other words, it goes on to offer different prices for the medical and recreational use of marijuana. She further continued, saying that it is important to ensure a healthy medical cannabis industry.
Aaron D. Ford is one of the people who have actually praised the agreement. This was after the Senate votes took place. Ford stated that having proper consumer protection is very important while dealing with recreational marijuana. He said that provided Nevada’s consumer protection is strong, the recreational cannabis industry of this state could actually become a leading revenue generating industry.