Existing law imposes an excise tax at the rate of 15 percent of the fair market value at wholesale upon each wholesale sale of cannabis by a medical cannabis cultivation facility or an adult-use cannabis cultivation facility to another cannabis establishment. (NRS 372A.290) Existing law imposes an excise tax at the rate of 10 percent of the sales price of each retail sale of cannabis or cannabis products by an adult-use cannabis retail store or cannabis consumption lounge. (NRS 372A.290) Section 7 of this bill revises the excise tax on the wholesale sale of cannabis to apply the tax only to the first wholesale sale and to provide that the tax is at the rate of 15 percent of: (1) the fair market value at wholesale for sales made to an affiliate of the medical cannabis cultivation facility or adult-use cannabis cultivation facility; or (2) the sales price, if the sale is made to a cannabis establishment that is not an affiliate of the medical cannabis cultivation facility or adult-use cannabis cultivation facility. Existing law requires the Department of Taxation to adopt regulations to establish procedures to determine the fair market value at wholesale of cannabis. (NRS 678B.640) Section 9 of this bill establishes certain additional requirements for the regulations adopted by the Department. Section 9 requires the Cannabis Compliance Board to ensure that any computer software used for the seed-to-sale tracking of cannabis adopted by the Board includes a method to denote transfers of cannabis between affiliates.

Statutes affected:
As Introduced: 370.054, 372A.200, 372A.247, 372A.250, 372A.285, 372A.290, 387.1212, 678B.640
Reprint 1: 370.007, 370.054, 372A.247, 372A.290, 678B.640
Reprint 2: 372A.290, 678B.640
As Enrolled: 372A.290, 678B.640
BDR: 370.054, 372A.200, 372A.247, 372A.250, 372A.285, 372A.290, 387.1212, 678B.640