If the initiative passes wouldn’t the state tax marijuana and generate millions of dollars?

The pushers of legalizing marijuana in Nevada would like voters to think passing the initiative would allow the state to collect millions of dollars of tax revenue.

Even if the initiative passes in November it is very unlikely that the state will generate much, if any, tax revenue from the sales of marijuana.

Federal law is very clear; NO state may act as a licensing authority for the production and sale of marijuana. (See FAQ: Would the initiative help medical marijuana patients obtain the drug legally?)

Any business selling or producing marijuana would carry a very high risk of federal criminal prosecution. Few, if any businesses would take such a risk. Even if the initiative passes in November, without licensed businesses selling marijuana it is very unlikely that the state will generate much, if any, tax revenue from the sales of marijuana.