Las Vegas Sun

March 28, 2024

Lawmakers question projected revenue from recreational marijuana

CARSON CITY — Gov. Brian’s Sandoval’s $8.1 billion budget was outlined to state legislators today, and some lawmakers are already questioning the projected $100 million in revenue from legal recreational marijuana.

The Assembly Ways and Means Committee and the Senate Finance Committee received a high-level overview from executives of the Sandoval administration.

Sen. Ben Kieckhefer, R-Reno, questioned whether the administration has contacted the federal government about its position that possession of marijuana is still a crime. Budget Director Jim Wells said there have not been any contacts.

Voters approved an initiative to legalize recreational marijuana and included a 15 percent tax on wholesale sales. Sandoval proposes a 10 percent excise tax, also.

Wells said $70 million of the projected $100 million would come from the wholesale and retail tax. Assemblywoman Robin Titus, R-Wellington, questioned whether this was optimistic, nothing potential delays in setting up the program.

Wells said the budget includes only 55 percent of the expected tax revenue in the first year and 85 percent the second year.

Wells said his office has been in contact with officials in Colorado, which has a recreational marijuana program. He said the agency has looked at expected consumption, the number of users and the number of visitors who might buy marijuana.

Wells and Mike Willden, the governor’s chief of staff, painted an improved economic picture for the state.

Willden said the budget envisions a rainy day fund of $200 million at the end of the biennium. He said the fund was drained for emergencies during the recession.

Sen. David Parks, D-Las Vegas, questioned whether Nevada was getting as much money as it could from the federal government,

Willden said that in 2005, the state received 79 cents for every $1 it sent to Washington. It now receives $1.14 for every $1 sent to the federal government, he said.

Today’s briefing was in advance of the regular session, which begins Feb. 6. The committees will delve more deeply into the budget items later.

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