On Monday, the Nevada Tax Commission voted to allow licensed medical cannabis dispensaries in good standing to sell cannabis for recreational purposes as early as July 1. This gives consumers an extra six months to purchase cannabis for recreational purposes before the designated deadline.
The commission voted 6-1 in favor of allowing temporary licenses that allow recreational sales to commence before the January 1 deadline to draft recreational rules. The temporary licenses will expire on January 1, which grants the state Department of Taxation a cushion of time to test out the regulations before recreational sales go into full effect.
The Department of Taxation will begin accepting applications, from compliant medical cannabis dispensaries on May 15. The application fee imposed by the state is a one-time fee of $5,000. On top of the application fee, medical cannabis companies will have to pay a license fee t as low as $10,000 for a production or manufacturing facility, up to $30,000 for cultivation facility. In order to operate, cannabis retailers must be licenses on a local and state level, however most counties in Nevada haven’t established recreational regulations.
“We do have a gap in the timeline between ‘legal to use’ and ‘legal to buy’. So, the shorter that gap is, the better,” Will Adler, Executive Director of Sierra Cannabis Coalition told KTVN. “I think it is good for the state because the voters asked for this and we’re trying to give it to them.” According to the Department of Taxation, the reason to start six months early was the lure of tax revenue and the expansion of cannabis companies, which helps boost the local economy. Gov. Brian Sandoval’s proposed 10 percent excise tax on recreational cannabis sales could rake in an additional $30 million for the state’s economy.
Nevada residents voted to legalize cannabis in 2015, and consuming recreational cannabis became legal on January 1. When dispensaries are ready, adults will be able to purchase up to an ounce of cannabis or 1/8 ounce of purified concentrate at a time. Residents are also permitted to grow up to six plants for personal consumption.
The deadline to apply for an application is May 31.
Source: Culture Magazine