NRS 372A.290 Imposition and amount of tax on wholesale sales and retail sales; distribution of revenue collected; manner of payment of costs of Cannabis Compliance Board and local governments from revenue collected; regulations; certain retail sales exempt.
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NRS 372A.290 Imposition and amount of tax on wholesale sales and retail sales; distribution of revenue collected; manner of payment of costs of Cannabis Compliance Board and local governments from revenue collected; regulations; certain retail sales exempt.
1. An excise tax is hereby imposed on the first wholesale sale in this State of cannabis by a medical cannabis cultivation facility to another cannabis establishment at the rate of 15 percent of:
(a)The fair market value at wholesale of the cannabis, if the sale is made to an affiliate of the medical cannabis cultivation facility; or
(b)The sales price of the cannabis, if the sale is made to a cannabis establishment that is not an affiliate of the medical cannabis cultivation facility.
Ê The excise tax imposed pursuant to this subsection is the obligation of the medical cannabis cultivation facility.
2. An excise tax is hereby imposed on the first wholesale sale in this State of cannabis by an adult-use cannabis cultivation facility to another cannabis establishment at the rate of 15 percent of:
(a)The fair market value at wholesale of the cannabis, if the sale is made to an affiliate of the adult-use cannabis cultivation facility; or
(b)The sales price of the cannabis, if the sale is made to a cannabis establishment that is not an affiliate of the adult-use cannabis cultivation facility.
Ê The excise tax imposed pursuant to this subsection is the obligation of the adult-use cannabis cultivation facility.
3. Except as otherwise provided in subsection 8, an excise tax is hereby imposed on each retail sale in this State of cannabis or cannabis products by an adult-use cannabis retail store or cannabis consumption lounge at the rate of 10 percent of the sales price of the cannabis or cannabis products. The excise tax imposed pursuant to this subsection:
(a)Is the obligation of the seller of the cannabis or cannabis product but may be recovered from the purchaser.
(b)Is separate from and in addition to any general state and local sales and use taxes that apply to retail sales of tangible personal property.
4. The revenues collected from the excise tax imposed pursuant to subsection 1 must be distributed:
(a)To the Cannabis Compliance Board and to local governments in an amount determined to be necessary by the Board to pay the costs of the Board and local governments in carrying out the provisions of chapter 678C of NRS; and
(b)If any money remains after the revenues are distributed pursuant to paragraph (a), to the State Treasurer to be deposited to the credit of the State Education Fund.
5. The revenues collected from the excise tax imposed pursuant to subsection 2 must be distributed:
(a)To the Cannabis Compliance Board and to local governments in an amount determined to be necessary by the Board to pay the costs of the Board and local governments in carrying out the provisions of chapter 678D of NRS; and
(b)If any money remains after the revenues are distributed pursuant to paragraph (a), to the State Treasurer to be deposited to the credit of the State Education Fund.
6. For the purpose of subsections 4 and 5, a total amount of $5,000,000 of the revenues collected from the excise tax imposed pursuant to subsection 1 and the excise tax imposed pursuant to subsection 2 in each fiscal year shall be deemed sufficient to pay the costs of all local governments to carry out the provisions of chapters 678C and 678D of NRS. The Board shall, by regulation, determine the manner in which local governments may be reimbursed for the costs of carrying out the provisions of chapters 678C and 678D of NRS.
7. The revenues collected from the excise tax imposed pursuant to subsection 3 must be paid over as collected to the State Treasurer to be deposited to the credit of the State Education Fund.
8. The excise tax imposed pursuant to subsection 3 does not apply to a sale of cannabis for the medical use of cannabis or a medical cannabis product to the holder of a registry identification card or letter of approval by an adult-use cannabis retail store that has been deemed to be a dual licensee pursuant to NRS 678D.490 .
9. As used in this section:
(a)“Adult-use cannabis cultivation facility” has the meaning ascribed to it in NRS 678A.025 .
(b)“Affiliate” means a person who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with, a specified person.
(c)“Cannabis product” has the meaning ascribed to it in NRS 678A.120 .
(d)“Letter of approval” has the meaning ascribed to it in NRS 678C.070 .
(e)“Local government” has the meaning ascribed to it in NRS 360.640 .
(f)“Medical cannabis cultivation facility” has the meaning ascribed to it in NRS 678A.170 .
(g)“Medical cannabis establishment” has the meaning ascribed to it in NRS 678A.180 .
(h)“Medical cannabis product” has the meaning ascribed to it in NRS 678A.200 .
(i)“Medical use of cannabis” has the meaning ascribed to it in NRS 678A.215 .
(j)“Registry identification card” has the meaning ascribed to it in NRS 678C.080 .
(k)“Wholesale sale” means the first sale or transfer of cannabis by a cannabis cultivation facility to another cannabis establishment. The term does not include a transfer of cannabis by a cannabis cultivation facility to another cannabis cultivation facility when both cannabis cultivation facilities share identical ownership.
Overpayments and Refunds