Cheyenne Student News

Marijuana Tax Revenue to be Used to Fund Nevada Schools in 2019!!!

Back to Article
Back to Article

Marijuana Tax Revenue to be Used to Fund Nevada Schools in 2019!!!

By Trent A. and Briana R., Staff Writers

Starting in 2019, fifteen percent of the revenue from excise tax will fund public Nevada schools, including the schools in the Clark County School District.

The Nevada Marijuana Legalization Initiative, also known as Question 2, was passed in 2016.  Recreational marijuana in Nevada became legal on January 1st, 2017. Out of the $7.9 billion total for the state budget, $63.5 million of it comes from marijuana.

In February 2018, the state took in a record $5.95 million in tax revenue from recreational pot sales. ”

Assemblywoman Dina Neal of District 7 is one of the legislators for the state who is currently tutoring at Cheyenne High School. She stated, “It will be about $63.5 million that will be in there [the tax]…and it will be distributed in the 2019 legislative session.” Later on, she added, “So, everyone is assuming the budget is $63.5 million, so they plan for $63.5 million, and if there’s more, they’ll have further discussion around that.”

In February 2018, the state took in a record $5.95 million in tax revenue from recreational pot sales. About $3.5 million of that came from the 10 percent excise tax on retail pot sales, while the rest came from the 15 percent tax on wholesale cannabis. The state has brought in about $41.9 million of marijuana tax revenue through February, which is about 83 percent of the $50.3 million the state projected for the first full year of sales.

Currently, the money from the marijuana tax is going towards the rainy day fund. The rainy day fund is a savings account for the state that is being set aside for any funds the state needs. The reason it is being set aside is because the budget needs to be passed first.

According to Assemblywoman Neal, “The budget bill was held up in the Senate because the bill must pass in a certain order, so it was not directly allocated. It was set aside in the rainy day fund.”

A portion of the money from recreational marijuana will go to the Distributive School Account, and 10% will go to pay an administrative fee. Depending on how much recreational marijuana is being purchased, that tax amount can fluctuate from either going up or down. The budget is built off of projections for the next year.

Compared to other fundings, the marijuana tax is a lot smaller. The budget is $7.9 billion total for the state and the marijuana tax is $63.5 million. For example, the GST (general service tax), which typically shows up on yearly car registration, is about $19 million. As for determining what amount goes to what schools for the recreational money, Assemblywoman Neal emphasized, “It is all based on a very complex formula from the Nevada plan that has been in place since the early 60’s in which rural schools get more money.”

In 2019, the money will be distributed to school districts in Nevada, including CCSD schools.

“I mean people believe it’s there, and it’s not. Don’t believe the recreational use is currently going to fund education, because it’s not–not yet. As of 2019, it will,” Says Assemblywoman Neal.

Currently, $63.5 million dollars is projected in the rainy day fund until the state legislature votes to allocate the monies to Nevada schools.

 

Print Friendly, PDF & Email
Navigate Left
Navigate Right
The Voice of Cheyenne High School
Marijuana Tax Revenue to be Used to Fund Nevada Schools in 2019!!!