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.
What are the taxes on cannabis?
Starting July 1, 2017, cannabis will be taxed in the
- 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?
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
What if I need to amend a Retail Cannabis and/or Wholesale Cannabis Tax return?
Copy of the Retail Cannabis and/or Wholesale Cannabis Tax return for the period (month) in which sales were originally paid.
Write "AMENDED" in black, in the upper right-hand corner of the tax return.
Line-through original figures originally reported, in black, leaving oriignal figure legible.
Enter corrected figures, in black, next to the figures lined out.
Indicate amount of credit claimed.
Include a written explanation and documentation substantiating the basis of the credit claim.
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
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
Establishments that do not file each of the required returns
– even if they do not owe tax – will receive delinquency notices from the