The State of Nevada was the fifth jurisdiction to allow cannabis recreational use for adults. In July 2017, the state allowed recreational use following the passage of a ballot initiative during the prior year. It would be the third time for the state to introduce a recreational cannabis initiative before finally gaining favorable votes. Before the 2016 initiative, there were two failed initiatives to get recreational laws passed. While recreational use was only authorized recently, medicinal use in the state was already allowed since 2000.
Nevada Licensing Overview
The Nevada Department of Taxation took over the cannabis business licensing function for both recreational and medicinal marijuana in 2017. The state implemented an “early start program” until the end of the year which limits the retail licenses to those who currently operate a certified medicinal cannabis facility. The regular retail program will be implemented in 2018. The state has 5 types of cannabis licenses, namely; for cultivation, distribution, product manufacturing, testing, and retail.
Keeping Up to Date With Nevada Requirements
Like all of the states that pursued legalization for both recreational and medicinal use, Nevada saw a favorable increase in state revenues. Industry experts also project a lucrative outlook for the future. In July, when recreational cannabis use was allowed, the state generated around $.3.68 million in revenues. Within the next two years, cannabis businesses are expected to bring in around $120 million in sales tax, without factoring in the potential license fees collected by the state. With these figures, it is no wonder how legalization also spurred the rise of Nevada-based cannabis businesses.
Nevada marijuana laws impose a 15 percent excise tax on cultivators for product wholesale earnings. Meanwhile, retails stores pay 10 percent. The rate was initially at 2 percent for cultivators, but it was raised to 15 percent by statute. The two types of cannabis excise taxes are appropriated separately for Nevada schools and for the State Rainy Day Fund.
Assisting Nevada Cannabis Businesses
A business with complex regulatory requirements requires a well-designed tech tool to prevent unnecessary penalties and other issues. While business owners balance the need to earn and provide excellent customer service, they also have the added responsibility of complying with state and federal restrictions. By using a program that can interface with Nevada cannabis regulations, they are addressing a critical component of their business.
These critical restrictions include state limits to customer purchases and even coordinated tax reporting. The system also ensures that the business follows the strict branding and labeling guidelines enforced by Nevada laws. The system also saves time through a customized feature that allows automatic updates to current menu items.
In July, when the state of Nevada allowed recreational use within the state, more than 40 licensed dispensaries opened its doors to customers. Despite the looming federal regulatory constraints, a growing number of local cannabis entrepreneurs decided to tap into the high-growth industry. Together with cultivators and retailers, enterprising tech groups also tapped into the growing market by filling the need for a system that would ensure statewide compliance.