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 at retail tangible personal property, including, without limitation, 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, which is referred to as a sales tax permit. (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 that, in addition to any other permit required by law, including, without limitation, a sales tax permit, every person who desires to engage in the sale of cannabis or cannabis products must, before obtaining a license from the Cannabis Compliance Board, apply for and obtain a cannabis tax permit issued by the Department for each place of business; and (2) establishes requirements for the application. Section 15 of this bill make this requirement applicable beginning on January 1, 2027, and section 14 of this bill establishes the manner in which persons engaging in the business of selling cannabis or cannabis products before that date are required to comply with the requirement to obtain a cannabis tax permit before that date. Section 7 of this bill requires the Department, not later than 15 days after receiving an application, 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 establishes procedures for the Department to revoke or suspend a cannabis tax permit for failure to comply with certain requirements relating to excise taxes imposed on the sale of cannabis and cannabis products. Specifically, section 8: (1) requires the Department to provide to the holder of a cannabis tax permit certain information concerning any alleged noncompliance, and an opportunity to cure such noncompliance, before issuing a notice of a hearing for the revocation or suspension of the cannabis tax permit; (2) authorizes the Department to, after notice and a hearing, revoke or suspend a cannabis tax permit for such noncompliance; (3) provides for an appeal to the Nevada Tax Commission; and (4) requires the Department to send a copy of a final decision to revoke or suspend a permit to the 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. Section 9.5 of this bill establishes provisions for a holder of a license issued by the Board who has requested to transfer the license to request and receive from the Department a certificate of the amount of any delinquent excise taxes, and the penalties and interest relating thereto. Sections 10-12 of this bill make conforming changes to: (1) indicate the proper placement of sections 2-9.5 in the Nevada Revised Statutes; and (2) clarify that certain provisions of existing law apply to sections 2-9.5. 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 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 to revoke or suspend a cannabis tax permit or a sales and use tax permit, to suspend the corresponding cannabis license of the cannabis establishment until the excise tax liability is paid in full.

Statutes affected:
As Introduced: 372A.200, 372A.260, 372A.380
Reprint 1: 372A.200, 372A.260, 372A.380
As Enrolled: 372A.200, 372A.260, 372A.380
BDR: 372A.200, 372A.260, 372A.380