Retail Marijuana

Frequently Asked Questions

What is the new law?

On Nov. 8, 2016, Nevada voters passed ballot question 2, which legalized the possession of up to one ounce of marijuana for adults 21 years and older and provides for the retail sale of marijuana. It also assigns responsibility to the Department of Taxation for establishing licensing qualifications and procedures, as well as the regulation of marijuana establishments like cultivation facilities, distributors, and retailers. The new law imposes a 15 percent excise tax on marijuana wholesale sales.

 

When does it take effect?

The new law takes effect January 1, 2017.

 

What is the Department doing to implement the new law?

The Department is developing regulations to implement the provisions of the law. The law gives the Department one year after it takes effect to have regulations in place and to begin accepting applications for licenses. The Department anticipates holding a public workshop in the first quarter of 2017 on proposed temporary regulations. Once those regulations are adopted, the Department can begin accepting applications for licenses to operate a marijuana establishment.

 

When can I apply for a license?

Once temporary regulations are approved, the Department can begin accepting applications. For the first 18 months after the Department begins accepting applications, it can ONLY accept applications for retail stores, product manufacturing facilities, and cultivation facilities from people who already hold a medical marijuana establishment registration certificate. Additionally, the Department can only issue licenses for marijuana distributors to people holding wholesale dealer licenses (unless an insufficient number of marijuana distributors will result from this limitation). Once that 18-month period is up, the Department can accept applications from others.

 

How many retail stores can there be?

The Department is limited to issuing a certain number of licenses based on the population of the county. There can be:

  • Up to 80 stores in counties with a population of more than 700,000  
  • Up to 20 stores in counties with a population between 100,000 and 700,000  
  • Up to 4 stores in counties with a population between 55,000 and 100,000  
  • Up to 2 stores in counties with a population of fewer than 55,000  

 

How will retail marijuana be taxed?

Cultivation facilities will be required to pay a 15 percent excise tax on the wholesale sale of recreational marijuana. Retail purchases of retail marijuana will be subject to state and local sales tax. Retailers will collect sales tax from consumers and remit it to the state.

 

Can I smoke marijuana in public?

No. The initiative makes it illegal to smoke or consume marijuana in a public place or vehicle.

 

Can I grow my own marijuana at home?

As of January 1, 2017, a person 21 years of age or older can grow up to six marijuana plants for personal use on property they own (or with approval from the owner), but only if they are more than 25 miles from a licensed retail marijuana store. The cultivation must take place in an enclosed area that has a lock or other security device that allows access to only the authorized person. No household can have more than 12 plants, regardless of the number of eligible household members.   

 

How do I get more information?

As the Department continues to develop regulations, more in-depth information will be posted to this page. Check back for updates.

To receive email updates on retail marijuana implementation, including regulation workshops, send a message to: sklapstein@tax.state.nv.us