RENO, Nev. (KOLO) – It’s hard to believe pictures of people smoking and selling marijuana was an illegal activity nationwide years ago.
But no longer. Nevada is one of 24 states and the district of Columbia who have legalized pot.
Tax money generated from the sale of pot goes to school districts throughout Nevada.
We even have a cannabis compliance board who prides itself on regulating marijuana from seed to sale.
“We are here to celebrate 420,” says Jason Bandles, Nevada Cannabis Inspection Supervisor. “It’s been about 10 years since we had adult use cannabis in the state. And we just want to remind people to buy legally. Because when you buy legally with a licensed dispensary. You know it is compliant but also safe.”
The legitimate pot industry in Nevada finds itself competing with the black market, however.
Activity like delivering pot to hotels is illegal in Nevada. Yet those who operate illegally have no problem doing it. That takes away from legitimate businesses as well as taxes dollars for our schools.
Nevada State Treasurer Zach Conine has there’s also another threat to the legitimate marijuana industry in Nevada.
“We have intoxicating hemp,” says Conine. “Which is very poorly regulated. There was just a regulation changed in Clark County to start going after it. But basically, what this is is hemp that has been chemically altered to be intoxicating. It is not being tested. It’s not safe.”
Those two components are placing pressure on Nevada’s cannabis industry.
But there have been constants for business owners since the day they opened their doors. The federal government considers marijuana a Class 1 narcotic like heroin. It means those in the marijuana business can’t make standard business deductions on their taxes. They can’t work with certain banks for FDIC protection.
They can’t file for bankruptcy.
Still with all the challenges, the industry brought in $95 Million tax dollars to Nevada, in 2025.
Marijuana still is considered a Class One narcotic by the federal government.
That could change after President Trump signed an executive order late last year.
It designates Marijuana as a Class 3 drug, much like Ketamine and Anabolic Steroids.
Schedule 3 drugs indicate the medication has a low probability of physical or psychological dependence.
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