Posts Tagged ‘Nevada marijuana’

Nevada Runs Low in Weed, Gov. Declares State of Emergency

nevada-cannabisThere’s a first for everything, especially when it comes to the cannabis industry, so perhaps it’s not surprising that a weed shortage has led the governor of Nevada to declare a state of emergency.

Less than two weeks after recreational marijuana sales began, dispensaries report that they’re running out of product to sell. The state of emergency will allow state officials to decide on new rules to help alleviate the shortage.

The problem is that when Nevada approved recreational marijuana last November, the ballot measure stipulated that for the first 18 months of recreational marijuana sales, wholesale alcohol distributors would be granted the exclusive right to transport cannabis from grows to dispensaries.

However, the Department of Taxation hasn’t approved a single distribution license–and dispensaries are unable to restock their shelves. The department says that they haven’t issued any licenses because of incomplete applications and zoning issues.

“The business owners in this industry have invested hundreds of millions of dollars to build facilities across the state. They have hired and trained thousands of additional employees to meet the demands of the market. Unless the issue with distributor licensing is resolved quickly, the inability to deliver product to retail stores will result in many of these people losing their jobs and will bring this nascent market to a grinding halt. A halt in this market will lead to a hole in the state’s school budget,” said Department of Taxation spokeswoman Stephanie Klapstein.

The Nevada Dispensary Association estimated that dispensaries made about $3 million in sales and the state made about $1 million in tax revenue between July 1 and July 4. Over the next two years, Nevada tax officials expect cannabis sales to generate $100 million in revenue.

The Nevada Tax Commission will vote on regulation to expand the pool of eligible distributors on Thursday.

 

Recreational Cannabis in Nevada Hits a Roadblock

vegas-cannabisExcited for recreational marijuana in Nevada on July 1? Hold that thought.

On Tuesday, a Carson City judge, James Wilson, issued an injunction that reverses the Tax Department’s decision to allow more than just alcohol wholesalers to transport recreational marijuana from growers to dispensaries. The move could delay a planned July start date for recreational cannabis sales.

When voters approved Question 2 to legalize recreational marijuana in November, the initiative included a requirement that distribution licenses would be issued only to alcohol wholesalers for the first 18 months of sales.

Representatives from the Independent Alcohol Distributors of Nevada (IADON) and the state Department of Taxation gave testimony on Monday in an 8-hour hearing. In his 11-page ruling, Wilson said that a “brief filed on behalf of the liquor distributors corroborated evidence that the businesses would be shut out of the marijuana distribution business entirely if the tax department issues licenses to non-alcohol distributors…Once licenses are issued to others, it will be difficult if not impossible to revoke those licenses.

However, the Department of Taxation said in March that there was limited interest among alcohol wholesalers and that the requirement would result in an in insufficient number of distributors.

According to the spokesperson for the tax department, Stephanie Klapstein, at the end of the application deadline in May, only five of 93 applications for recreational cannabis distribution licenses were issued to alcohol wholesalers. And of those five, none have actually completed the application. The other 85 applications were from existing medical marijuana dispensaries.

The Nevada Department of Taxation is reviewing the court’s decision with the attorney general’s office and “will explore all legal avenues to proceed with the program as provided in the regulations,” Klapstein said in a statement.

The approval of Question 2 tasked the state with creating a regulated marijuana sales structure by the start of 2018. But after visiting and studying other states that legalized marijuana, Nevada officials determined that waiting a full year after the drug became legal would risk growing the black market. Instead, they planned for an “early start” to get the program up and running by July.

Applications for Nevada Recreational Cannabis Sales Now Open

Good news Nevada cannabis enthusiasts: the application period for recreational cannabis sales is underway and stores are expected to open by July 1. Licenses will be distributed to currently operating medical marijuana dispensaries. In addition, liquor wholesalers will be able to apply for temporary distribution licenses.

Here’s everything you need to know about applying for a recreational cannabis license:

The Department of Taxation began accepting applications Monday for businesses wanting to grow, produce and sell recreational marijuana. The licenses will allow medical marijuana dispensaries to sell cannabis products to adults 21 and older, with the goal of retail sales beginning July 1. The application deadline ends May 31.

The voter-approved ballot measure tasked the state with creating a regulated marijuana sales structure by the start of 2018. But after visiting and studying other states that legalized marijuana, Nevada officials determined that waiting a full year after the drug became legal would risk growing the black market.

Businesses will need similar licenses at the state level to begin selling marijuana to non-medical patients. Clark County, Las Vegas and North Las Vegas are all planning to issue licenses by July 1. Henderson implemented a six-month moratorium on retail marijuana in February.

Only currently licensed and operating medical marijuana establishments in good standing with the state are eligible to apply for retail, production, cultivation and testing licenses.

Distribution licenses are available to liquor wholesalers, medical marijuana companies and operating medical marijuana distribution companies.

Permanent regulations are being crafted by the Department of Taxation, and permanent licenses are expected to be issued on Jan. 1.

License to Sell

How much a 6-month recreational marijuana licenses will costs businesses:

$5,000 to apply for a license, plus an additional fee if the company is awarded a license.

Those additional fees range from:

  • $20,000 for retail stores
  • $30,000 for cultivation facilities
  • $10,000 for production facilities
  • $15,000 for testing labs
  • $15,000 for distributors

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