What is the State of Marijuana in Nevada?
Marijuana is legal for medical and recreational purposes in Nevada. Medical marijuana became legal in 2000 after the majority of Nevada voters approved Ballot Question 9. However, the first medical dispensary began sales in 2015. The Nevada medical marijuana program allows patients with debilitating medical conditions to purchase up to 1 ounce of dried cannabis flower. Minors under 18 years can also use medical marijuana, provided they have designated caregivers registered under the Nevada Medical Marijuana Cardholder Registry. Only certified medical dispensaries can sell marijuana to approved patients. Medical marijuana cardholders in Nevada can possess up to 2.5 ounces of marijuana, which must remain sealed in a container when in public. Marijuana cultivation is legal only for patients who live outside 25 miles of the nearest medical dispensaries. Patients who cannot travel to local dispensaries due to poor health or transportation can also cultivate up to 12 marijuana plants.
The massive support for Ballot Question 2, Initiative to Regulate and Tax Marijuana in 2016 legalized recreational marijuana in Nevada. The law, which became effective in 2017, permits marijuana use for residents aged 21 or older. Individuals within the legal age can buy up to one ounce of cannabis flower and ⅛ ounce of marijuana concentrates. Adults who cannot locate a state-licensed dispensary within 25 miles can grow marijuana at home for personal use, according to CCB regulations.
How has Marijuana Affected the Nevada Economy?
The Nevada economy has benefited immensely from the legalization of medical and recreational marijuana since 2017. As of January 2024, the Cannabis Compliance Board (CCB) has issued licenses to over 700 businesses to provide cannabis to medical and recreational consumers. There are currently 100 medical dispensaries/cannabis stores in Nevada; 66 licensees sell to both medical and recreational users, 33 licensees sell to only recreational consumers, and one sells to only medical patients.
Between July 2021 and June 2022, the total taxable cannabis sales were over $965 million, according to reports from the Nevada Department of Taxation (DoT). Below is an overview of tax revenue generated from marijuana sales in Nevada since 2018.
| Fiscal Year (July - June) | Total Taxable Sales | Retail Excise Tax | Wholesale Excise Tax |
|---|---|---|---|
| 2017/2018 | $529,851,244 | $42,489,201 | $27,270,581 |
| 2018/2019 | $639,035,590 | $55,184,916 | $44,000,057 |
| 2019/2020 | $684,959,149 | $60,410,272 | $44,770,674 |
| 2020/2021 | $1,003,467,665 | $92,138,285 | $65,613,311 |
| 2021/2022 | $965,091,123 | $89,314,456 | $63,020,342 |
| 2022/2023 (As of October 2022) | $277,692,394 | $25,882,181 | $16,766,533 |
What is the Marijuana Crime Rate in Nevada?
Common marijuana-related crimes in Nevada include possession violations, marijuana DUI arrests, and illegal sale/manufacturing offenses. According to the FBI Crime Data Explorer (CDE, law enforcement in Nevada made over 6,000 arrests for marijuana possession charges and 822 arrests for illegal marijuana sales in 2016. The total number of arrests for driving under the influence charges was over 10,000 in the same year. After marijuana legalization in 2017, arrests for marijuana possession offenses declined to 1,572, while illegal marijuana sales arrests decreased to 556. In 2020, there were fewer than 1,000 arrests for illegal marijuana possession and more than 700 arrests for illegal marijuana sales. In general, crime in Nevada has declined since marijuana legalization in 2017. Law enforcement recorded more than 75,000 cases of property crimes in 2016 and in 2017. However, property crime incidents declined to 74,000 in 2018, 71,000 in 2019, and about 62,000 in 2020.
What is the History of Nevada Marijuana?
Before legalization, marijuana was considered a narcotic drug in Nevada. At the time of the Mexican Revolution of 1910, several states, including Nevada, outlawed the possession and sale of any amount of marijuana. In 1923, Nevada passed a law describing cannabis as a narcotic drug, so possessing such a drug became a misdemeanor offense. As the war on drugs intensified, Nevada legislators, in compliance with the Marihuana Tax Act, passed the Uniform Narcotic Drug Act in 1937. More bills proposing stiffer marijuana penalties were passed between 1955 and 1970.
Nevada legislators introduced several bills, including Assembly Bill 253 in 1977, to decriminalize simple marijuana possession. After the unsuccessful marijuana decriminalization bills, the majority of Nevada voters approved Ballot Question 9 in 1998 and 2000. The approval of Question 9 in two consecutive elections legalized medical marijuana in Nevada. However, approved medical patients could only cultivate up to 12 cannabis plants since there was no legal framework for marijuana sales between 2001 and 2013. In 2013, the governor signed Senate Bill 374, which allows marijuana establishments that wish to grow, process, and sell marijuana to register for the Nevada medical marijuana program. The first licensed medical dispensary in Nevada started operations in 2015. At the time, the Nevada Department of Health and Human Services had issued medical marijuana cards to more than 9,000 approved patients.
A bill decriminalizing marijuana from a felony crime to a misdemeanor, Assembly Bill 453, became law in 2001. The marijuana decriminalization bill ensured that possession of 1 ounce results in fine-only misdemeanor charges. Offenders accused of a third-time offense faced stiffer punishments, such as imprisonment. In 2002, an attempt to legalize recreational marijuana appeared on the statewide ballot questions. The voter’s initiative, known as the Decriminalization of Marijuana Amendment, was unsuccessful as it received only 39% of votes. Another voter’s initiative to legalize adult-use marijuana appeared on the 2006 ballot questions as No. 7, but it also failed to get majority votes. However, a third voter’s initiative in 2016 passed, with 54% of Nevada voters supporting the measure known as the Initiative to Regulate and Tax Marijuana (Question 2). This legalized recreational marijuana for residents 21 years and older.
Although marijuana possession is legal, public consumption remains illegal. The ballot measure restricted consumers from opening the marijuana package in public places. Nevada legislators saw this restriction as a major problem since the state is a famous tourist destination. As a result, the lawmakers passed Assembly Bill 341 in 2021 to allow licensed consumption lounges to operate. Signed by the governor and effective from October 2021, licensed consumption lounges began to sell marijuana to adults and allow them to consume the product there.
