Existing law imposes an excise tax on the wholesale and retail sale of cannabis by certain licensed cannabis establishments. (NRS 372A.290) Existing law also requires any person engaged in the business of selling tangible personal property, which includes adult-use cannabis retail stores and cannabis consumption lounges, to register or file an application for a permit for each place of business from the Department of Taxation. (NRS 360.5971) Sections 3-5 of this bill define certain terms relating to the taxation of the sale of cannabis. Section 6 of this bill: (1) requires, in addition to any other permit required by law, every person who holds a license from the Cannabis Compliance Board who desires to engage in the sale of cannabis of any kind to apply for a cannabis tax permit issued by the Department for each place of business; and (2) establishes requirements for the application. Section 7 of this bill requires the Department to grant and issue to an applicant a separate cannabis tax permit for each place of business and provide the applicant with a full written explanation of the liability for the collection and payment of any applicable taxes. Section 7 also provides that a cannabis tax permit is not assignable and is only valid for the transaction of business at the place of business designated in the permit. Section 8 of this bill: (1) authorizes the Department to, after notice and a hearing, revoke or suspend a cannabis tax permit for failure to comply with any applicable provision of state law or regulation of the Department governing taxation; (2) provides for an appeal to the Nevada Tax Commission; and (3) requires the Department to send a copy of a final decision to revoke or suspend a permit to the Cannabis Compliance Board. Section 9 of this bill requires an aggrieved person to pay the amount of the tax liability, or to enter into an agreement to pay the liability, before the person may seek judicial review of a final decision of the Commission. Sections 10-12 of this bill make conforming changes to: (1) indicate the proper placement of sections 2-9 in the Nevada Revised Statutes; and (2) clarify that certain provisions of existing law apply to sections 2-9. Existing law prohibits a person from engaging in business as a cannabis establishment, which includes the sale of cannabis or cannabis products, unless the person holds a license from the Cannabis Compliance Board. (NRS 678B.210, 678B.250, 678B.530) Section 13 of this bill requires the Board, upon receipt of a copy of a final decision provided pursuant to section 8, to suspend the corresponding cannabis license of the cannabis establishment until the tax liability is paid in full.

Statutes affected:
As Introduced: 372A.200, 372A.260, 372A.380
BDR: 372A.200, 372A.260, 372A.380