K&H Blog

A Useful Guide to the July 1st Roll Out

Accounting, Advisory

If you are a cannabis business in Nevada then you are going to want the most up to date information on what to expect when July 1st rolls around.

 

The Nevada Medical Marijuana Program is Moving

The medical marijuana program will move from the Division of Public and Behavioral Health to the Department of Taxation.  A lot of the numbers you currently use will remain the same until the move is complete in a few months.  The Department of Taxation will send out updates that are affected by any changes.

 

Inventory Designation & Tax Changes resulting from 2017 Legislation

Inventory: Marijuana establishments will not need to designate whether inventory is for medical or retail (recreational).  We can credit this change to the passage of SB 487, because of it marijuana inventory can be kept as a single inventory until the point of sale.

Medical Marijuana Tax Structure Changes: Medical and retail marijuana will be aligned up to the point of sale because of SB 487.  This allows for a single stream of inventory.

First wholesale sale by cultivators are subject to a 15%excise tax, which will be calculated on the Fair Market at Wholesale determined by the Department of Taxation.  This replaces the previous 2% excise tax at each sale for medical marijuana.  Local sales and use taxes will also apply to consumer transactions at the point of sale.

Retail Marijuana Tax Structure: Retail (recreational) marijuana sales will be subject to a 10% excise tax to the consumer at the retail sale.  Local sales and use taxes will also apply.

These changes mean that starting with July taxes (due in August), the only marijuana establishments responsible for for reporting and Paying marijuana excise taxes are cultivators and retail stores/dispensaries.

Before the August 2017 due date these new tax returns will be posted to the department’s Excise Tax Forms Page:

  • Marijuana Wholesale Excise Tax Return
  • Marijuana Retail Excise Tax Return

Questions regarding any of the above information should be directed to the Department of Taxation’s call center at (866) 962-3707

(source:Nevada Department of Taxation)

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