More than eight years after the decriminalization of possession of up to one ounce of marijuana for those in Nevada aged 21 and over, misconceptions regarding the budgetary implications of cannabis taxation persist. Two excise taxes, differences in distribution, and associated statutory changes have resulted in some confusion among both policymakers and the public.

This explainer seeks to clarify the status of cannabis law, tax policy, and related revenue in Nevada by exploring Nevada’s current cannabis use and tax policies and showing the inconsistency between the state’s projected and actual tax revenue in recent fiscal years.