Nevada OKs tax schedule for rec cannabis, increases MMJ rates

Nevada lawmakers have given final approval to a regulatory structure to tax the cultivation and sale of recreational marijuana when the industry is up and running.

Senate Bill 487 – which the governor is expected to sign into law – levies a 10% tax on retail sales and 15% tax on marijuana growers. The tax also would apply to cannabis grown and sold for medical use. Medical marijuana currently is taxed at 2%.

The legislation approved late Sunday is projected to raise $70 million in state tax revenue over two years when recreational sales begin, but a court order has delayed an early start date of July 1 for existing MMJ dispensaries. The full-scale adult-use program likely won’t launch in full until 2018 because the Nevada Department of Taxation has until January to finalize industry regulations.

The Nevada Assembly also gave final approval Monday to a bill designed to help keep marijuana out of the hands of children.

Specifically, SB344 would:

• Prohibit the use of cartoon characters, mascots or action figures to market marijuana.
• Forbid the use of animals or fruits in labeling.
• Require that products not appear to be candy, lollipops or ice cream.
• Demand that labels include the warnings “This is a marijuana product” and “Keep out of the reach of children.”
• Mandate disclosure of the potency of the product and a warning that the intoxicating effects may be delayed two hours after consumption.

– Associated Press