Nevada Changes Law to Deal with Marijuana Shortage

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Nevada Changes Law to Deal with Marijuana Shortage


Recreational marijuana use became legal in Nevada in early July. Unfortunately for Nevadans who wanted a legal high, the state’s distribution system caused supply to lag behind demand. Now regulators are relaxing rules in order to ensure a steady flow of weed.


Initially, state law only allowed alcohol wholesalers to distribute marijuana to retail outlets around the state. Nevadans’ demand for marijuana overwhelmed this system, however. There were over 40,000 transactions in the first few days of legalization, leading to shortages.


This prompted Gov. Brian Sandoval to declare a state of emergency. The state tax commission met and set new rules so that entities other than alcohol wholesalers could distribute marijuana. They hope that this will alleviate problems with retail outlets running low.


While Nevada officials had a rough time getting their system up and running, it does show that the state stands to reap significant tax revenue by allowing recreational marijuana use. The state imposes a 15% tax on wholesalers and a 10% tax on retail sales. The state projects that this will lead to $100 million in new tax revenue.


This influx of revenue could tempt lawmakers in other states to consider following the lead of Nevada and other states that legalize and tax recreational marijuana use.


Do you think that marijuana should be legal? Or do you support laws that make it illegal for people to use the drug recreationally?


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