Nev. Rev. Stat. § 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

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