Nevada lawmakers are considering the state’s first cannabis industry tax reforms since legalizing adult-use cannabis in 2017, the Nevada Current reports.
Lawmakers cited declining revenue from the state’s cannabis excise tax, which supports the State Education Fund. Tax revenue from the industry peaked in 2021 after four years of rapid growth, and declined 40% by 2025.
Currently, the state collects a 15% wholesale cannabis tax and a 10% excise tax on retail sales, plus the standard state and local sales taxes, which range from 6.85% to 8.375%. The wholesale tax uses the product’s estimated “fair market value,” but licensees have raised concerns that as prices continue to drop, the formula to calculate the wholesale taxes has not reflected those changes.
Lawmakers are considering removing the cannabis wholesale tax and raising the retail excise tax. The excise tax increase could range “anywhere from 2 to 5%,” Cannabis Control Board (CCB) Executive Director Michael Miles said in the report.
The idea was first introduced in a 2025 proposal by Assemblywoman Danielle Gallant (R) of Henderson. That bill failed, but lawmakers agreed to create a subcommittee to study the policy.
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