At the same time, Nevada creates a virtuous circle. The state levies a 10% tax on cannabis sales, and all that money is redistributed to education. This has been the case since 2019, thanks to the "SB545" law, which created a special fund, called Conta Distributiva Escola. In the fiscal year 2020, Nevada schools will receive $159 million from cannabis sales.
"This is what the people of Nevada have been waiting for since the legalization of recreational cannabis. Education is one of my top priorities, and I'm proud to see these cannabis taxes go directly to our students and our classes," said Democratic Gov. Steve Sisolak.
The legalization of the cannabis sales process could generate revenue as well as save money. It is therefore important to consider these benefits when thinking about the economic benefits associated with marijuana.
There are currently several billion dollars spent annually on federal marijuana enforcement. Suppose marijuana were legalized nationwide, with cannabis sales these costs would likely fall considerably if more states legalized marijuana; if it were legalized on a state-by-state basis, the costs would likely drop considerably.
The removal of marijuana from the list of controlled substances would result in far fewer court cases regarding the substance going to trial, which in turn would save money by resulting in fewer incarcerations.
Cannabis-based medical products would also benefit from legalizing marijuana. The price of marijuana is likely to decrease as commoditization occurs as marijuana becomes legal in more parts of the country.
With cannabis sales, marijuana companies looking to maximize profit might not consider this good news right away. Lower prices for marijuana-based products would be beneficial primarily for people who use these products for medical treatment.
On a local and a national scale, legalizing marijuana will bring tremendous economic benefits. Investors throughout the United States, as well as internationally, could also benefit from its security.
Despite marijuana still being illegal at the federal level, potential investors have difficulty capitalizing on its growth. Marijuana-related firms are seldom listed on public stock exchanges, and most of the successful companies in the early legal cannabis space are from Canada or other countries, although investors can also work with over-the-counter markets.
Marijuana companies would be able to list their shares on all U.S. exchanges if marijuana became legal, increasing liquidity and giving investors access to a much wider pool of investors. Investors are likely to show a keen interest in cannabis if growth rates in the industry continue to rise as they have in recent years.
Nevada could earn more than $1 billion in tax revenue over the next seven years from pot production, processing, and sales, according to a report for a marijuana trade group. Here is a video about it:
Unsurprisingly, the city of Las Vegas sells more cannabis in Nevada. Almost 80% of cannabis sales take place in Sin City. In addition to its casinos, luxury hotels, and Elvis Presley weddings, the city can now pride itself on offering cannabis to its 40 million annual tourists.
Nevada is also advancing its legislation, as it has just accepted the creation of lounges, spaces where you can legally consume cannabis. Until then, residents and tourists could buy marijuana but could not use it on the street or in their hotels.
The number of stores is also increasing. Also, according to data from the Cannabis Compliance Council, there were 71 recreational cannabis sellers in July 2020. A year later, they now number 83.
Did you learn something about cannabis sales and their perks? If you want to read some of this and other topics, you can check some posts below:
