elevateNV
Nov 21 2019 . 2 min read
dispelling-nevadas-biggest-marijuana-myth

Dispelling Nevada’s biggest marijuana myth

Dispelling Nevada’s biggest marijuana myth

Did the tax money from cannabis sales go to education?

Did the tax money from cannabis sales go to education?

Although we have written about it on several occasions there still seems to be much confusion regarding distribution of tax money that is collected from recreational cannabis. There are two taxes collected from the sale of recreational marijuana in Nevada. One tax, a 15% Wholesale Marijuana Tax, goes to education. A second tax, a 10% Retail Marijuana Tax, is distributed to the state’s Rainy Day Fund.

For the last two years the state of Nevada has followed the law as required by the Nevada Marijuana Legalization Initiative, also known as Ballot Question 2, which was passed by a vote of the people on November 8, 2016 distributing the revenue to the state’s education account.

In August 2018, the state of Nevada’s Department of Taxation transferred $27,270,582 in marijuana revenue to education or the state’s Distributive School Account (DSA) for fiscal year 2018.

In September 2019, the state of Nevada’s Department of Taxation transferred $43,764,762 in marijuana revenue to education or the state’s Distributive School Account (DSA) for fiscal year 2019.

As for the second tax, resulting from and legislated by Senate Bill 487 that passed during the 2017 Legislative Session, it was distributed to the state’s Rainy Day account in fiscal years 2018 and 2019.

We hope this will finally put the myth to rest. The school children of Nevada indeed got their money. Now the $71.2-million-dollar question is: How was the money spent that went into the DSA account? 

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