FAQs on Taxes for Cannabis Establishments

The following information is for general guidance only. Please be advised that any information made available through FAQs cannot change controlling statutes or regulations and any such information is not intended to constitute "written advice" for purposes of NRS 360.294. To obtain written advice, please request an advisory opinion.

Taxes

What are the taxes on cannabis?

Starting July 1, 2017, cannabis will be taxed in the following way:

  • 15% excise tax on the first wholesale sale (calculated on the Fair Market Value); and 
  • Sales tax; and 
  • 10% retail excise tax on the sale price when sold by an adult-use cannabis retail store. Cannabis or products sold to a patient cardholder are not subject to this 10% excise tax. 

 

Who pays taxes on cannabis?

  • Wholesale cannabis excise taxes are the responsibility of cultivation facility.
  • Retail cannabis excise taxes are the responsibility of the adult-use retail store, retail cannabis consumption lounge and an independent cannabis consumption lounge.

When are my Retail Cannabis Tax or Wholesale Cannabis Tax due?

  • Both Retail Cannabis and Wholesale Cannabis Taxes are due monthly, the last day of the month, after the period ends. EX: 5/31/20201 is due 6/30/2021. If the due date falls on a weekend or holiday, the tax is due the next business day.

Is the retail excise tax imposed on the original price or discounted price?

The tax is imposed on the sales price.  The sales price does not include cash discounts allowed and taken on sales.

 

Is the retail sales tax imposed upon the original price or the price plus the retail excise tax?

The retail sales tax is applied on the sales price, not including the retail excise tax.

 

Is the retail excise tax imposed on the original price or the price plus the sales tax?

The retail excise tax is applied on the sales price, not including the  sales tax.

The facilities must also file a monthly sales tax return that includes both the sales for adult-use and the sales to patient cardholders.   

Facilities who do not file each of the required returns – even if they do not owe tax – will receive delinquency notices from the Department. 

For products that were already sold from the cultivator prior to July 1, 2017, will there be an additional wholesale tax imposed based on the new tax structure?

No, any items that were sold from the cultivator prior to July 1, 2017, whether in the inventory of the producer/manufacturer or the retail store or dispensary will only be subject to the retail excise tax and/or sales tax when it is sold as adult-use or to a patient cardholder.

 

Are there any exemptions for either Retail or Wholesale Cannabis Taxes?

  • Transfers of cannabis by a cannabis cultivation facility to another cannabis cultivation facility who share identical ownership. This exemption is effective July 1, 2021.
  • Sales made to person holding a valid registry identification card, letter of approval, or is authorized to engage in the medical use of cannabis under his or her state or jurisdiction of residence.

What if I file my taxes late, are there any additional penalties?

  • When a return is filed late, with partial, or no payment, penalties & interest are assessed. A graduated penalty, up to 10% of the tax balance is assessed based on how late payment was received. The full 10% is assessed 30 days after the due date. Interest is assessed at .75% monthly, on the tax portion of the unpaid balance, and is assessed on the 1st of each month after the due date. Penalty and interest will not accrue on unpaid penalty or interest. Once the tax balance has been paid in full the accrual of penalty and interest stop. A waiver of Penalties and/or Interest can be requested, in certain circumstances.

What if I need to amend a Retail Cannabis and/or Wholesale Cannabis Tax return?

  1. Copy of the Retail Cannabis and/or Wholesale Cannabis Tax return for the period (month) in which sales were originally paid.

  2. Write "AMENDED" in black, in the upper right-hand corner of the tax return. 

  3. Line-through original figures originally reported, in black, leaving oriignal figure legible.

  4. Enter corrected figures, in black, next to the figures lined out.

  5. Indicate amount of credit claimed. 

  6. Include a written explanation and documentation substantiating the basis of the credit claim. 

  7. Indicate whether a refund is requested or whether a credit will be used to meet current/future tax liability.

Are there any other fines or penalties associated with the cannabis industry?

There may be additional penalties or fines imposed by the Cannabis Compliance Board (CCB) for more information regarding CCB please visit their website at: https://ccb.nv.gov/

Where can I find information regarding cannabis licensing and Cannabis Agent Cards

This information can be found by clicking the following link: https://ccb.nv.gov/industry/

Is there anything else I need to know about the tax changes?

Under the new tax structure, only cultivators and retail stores will file and pay cannabis taxes. The Department will automatically convert cultivators’ tax accounts from Medical Marijuana Tax (MMT) to Wholesale Marijuana Tax (WMT). A cultivator will need to file a WMT return monthly, even if filing a “zero” return (i.e. even if there is no tax liability). 

The Department will establish Retail Marijuana Tax (RMT) accounts for retail stores, who will also need to file and pay a RMT return monthly. 

All other licensees will have their MMT accounts removed, and will not be required to file and pay marijuana taxes.

The establishments must also file a monthly sales tax return that includes both the sales for adult-use and the sales to patient cardholders.   

Establishments that do not file each of the required returns – even if they do not owe tax – will receive delinquency notices from the Department.