Native American tribes in Nevada are advocating for a legislation that would set the rules for marijuana cultivation and sale on Native American Land. The bill provisions also regulations for dispensaries that will ensure they operate in accordance with federal laws.
The Native American community is hoping that the development of the cannabis industry on native land will help end poverty, create jobs and will provide bright economic future.
Senate Bill 375 and Senate Bill 396, signed in June by Governor Brian Sandoval, allowed the tribes to negotiate with the federal government the legalization of marijuana for medical and recreational uses.
However, it’s still unclear whether will be amended a key point in the legislation that refers to the taxation of cannabis sales.
Legislators insist that the tribes should follow state rules and comply with the same health, security and taxation standards like state-licensed businesses. Meanwhile, Native American companies have a great advantage over other businesses in the cannabis industry, as they do not pay taxes on money earned on reservations.
Even though the state of Nevada enacts hefty taxes on marijuana sales, the tribal sovereignty exempts tribes from federal income taxes on their earnings. This means that a tribe-owned marijuana firm could earn a profit margin of up to 85 percent.
Tribes also hope that if they manage to secure a tax-free cannabis, this will bring many benefits for the community and provide jobs to its members. Currently about 98 percent of the approximately 1,100 tribal members are unemployed.