LAS VEGAS, NV – Las Vegas, Nevada, which is also widely known as “Sin City,” has recently added another form of sin in one of its vices. Before, only medical marijuana was allowed to be used in Nevada. However, a new law now permits the use of recreational marijuana as well.
July 1 is the expected date for the start of the recreational marijuana program. The two main political parties, the Democrats and the Republicans, are still perfecting the law. This law will determine the future of marijuana use in Nevada.
Tourists are still not allowed to smoke in public when the public consumption bill was abolished. Patients who are addicted to opium cannot be treated using medical marijuana although the Democrat party has put in their best efforts to make the latter possible.
Marijuana supporters and advocates had lobbied for the legalization of the bill. However, the implementation of the law on labels and tax are still regulated.
One of the changes that have been made was in the taxation of marijuana. The Republicans have put in their best effort to remove the retail tax of 10 percent on recreational weeds. However, the legislature still approved the implementation of this tax.
According to Governor Brian Sandoval, the implementation of tax is important because of the projected high revenue in incoming years. The projected revenue in the state is estimated to reach more than $60 million in just two years.
Currently, the tax for the cultivation of medical marijuana is only at 2 percent. The sale and production of medical cannabis is also 2 percent. However, the changes that were made to the law has allowed the 15 percent taxation on the cultivation of both recreational and medical weeds. Recreational cannabis will be sold with an added 10 percent tax. The implementation will start in July.
According to Senator Julia Ratti, the supporter of the tax bill, the important thing is that you’re creating the clear grounds of the cost between the recreational and medical marijuana. The medical marijuana should have the lower cost.
Ratti also said that the marijuana business is just new and there’s no assurance about the profit that it will bring in. For her, it is just right to tax the marijuana industry because there are no services clinging to the industry.
The revenue from the tax that will be collected from the cultivation of both medical and recreational weeds will be used for schools for education. The money to be used for this can be taken out from the fund anytime based on the way how the bill was written. The revenue from the tax that will be collected from the sales of recreational tax will be used as funds for rainy days.
In addition to the tax implementation from the cultivation and selling of medical and recreational marijuana, the tax bill also requires the charging of a license fee for marijuana establishments. The fee should not go beyond the 3 percent of the establishment’s gross income. This will provide an estimated $5 million revenue for local governments for their resources expenses.