Nevada Marijuana Business

What is the Demand for Marijuana in Nevada?

Marijuana has been in high demand in Nevada since its legalization in 2017. According to data from the state’s Department of Taxation (DOT), marijuana sales were over $529 million in the 2018 fiscal year. Sales figures rose by 20.6% the following year to over $639 million. The demand for recreational marijuana grew further in 2020, and Nevada sold over $684 million worth of cannabis, surpassing the previous year by about 7%. Between July 2020 and July 2021, cannabis sales recorded in the state exceeded $1 billion. In the following fiscal year ending in July 2022, total cannabis sales in Nevada dropped to $965 million. Reported cannabis sales for the 2023 fiscal year are on track to surpass the 2022 total. Overall, Clark County is responsible for most of the cannabis sales in Nevada, followed by Washoe County.

How is Marijuana Taxed in Nevada?

Nevada imposes a 15% excise tax on cannabis plantations per the Regulation and Taxation of Marijuana Act. The cultivation tax collected by the government must correspond with the fair market value for each whole sale made by the plantation. In addition, retail cannabis stores are required to pay 10% sales tax. Marijuana facilities are expected to maintain their financial records, which determine their tax liability and make them available for inspection by the DOT during business hours.

The excise tax generated from marijuana is distributed to local governments and the Cannabis Compliance Board (CCB) as stipulated in Nevada statutes. The CCB determines the amount that would cover their running cost and that of the local governments when fulfilling their duties as stated in the Nevada Regulation and Statutes. According to the statute, a sum of $5 million generated from marijuana cultivation and sales excise tax every fiscal year is considered sufficient for this purpose. The CCB chooses the manner it will distribute the money to the local governments. The rest of the revenue (if any) is disbursed to the State Treasurer to credit the State Education Fund. Any cannabis facility that defaults in its tax payments or records entry can be indicted of a gross misdemeanor.

What is the Agency Taxing Marijuana Business in Nevada?

The Nevada Department of Taxation (DOT) is responsible for administering government revenues generated from taxes and carrying out other functions specified in the Nevada Statutes. They serve the taxpayers, local, and state government agencies. As part of their functions, the DOT sets the guidelines for treasurers and assessors in the state, does annual population estimates, reviews government budgets, and appraises state property. Furthermore, the agency collects and distributes taxes of different sources, including marijuana. It also educates the public on topics relating to their businesses and the taxes imposed on them.

The DOT regulates medical and recreational marijuana licenses in Nevada. They issue new cannabis licenses, renew existing ones, and can deny permits to anyone who is delinquent in their tax payments. The department provides the public with annual reports on cannabis-generated tax revenues and disbursements to local governments.

Nevada taxpayers with tax-related inquiries or questions about the requirements for setting up new businesses can contact the DOT by calling 1 (866) 962-3707. They may also visit the department at any of the following office locations during regular business hours:

Nevada Department of Taxation

1550 College Parkway, Suite 115

Carson City, NV 89706

Nevada Department of Taxation

Grant Sawyer Office Building

555 E. Washington Avenue, Suite 1300

Las Vegas, NV 89101

Nevada Department of Taxation

4600 Kietzke Lane

Building L, Suite 235

Reno, NV 89502

Nevada Department of Taxation

2550 Paseo Verde, Suite 180

Handerson, NV 89074