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 took effect January 1, 2017.

 

What is the Department doing to implement the new law?

The Department has completed the temporary regulation process for the "quick start" program and began accepting marijuana establishment license applications on May 15, 2017. Those licenses will be effective July 1, 2017. The Department is also developing permanent regulations that will take effect in 2018 and govern the "permanent" retail marijuana program. Public workshops will be held during the permanent regulation process.  

 

When can I apply for a license?

The Department will be accepting applications for marijuana establishment licenses from May 15 through May 31, 2017, for the "quick start" program. Applications will be accepted again later in the year as the Department gears up for the "permanent" program that starts in 2018.  

 

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 retail marijuana. By statute, the Department must determine the fair market value at wholesale for the purposes of the excise tax. 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: marijuana@tax.state.nv.us

 

What is the Governor's Task Force?

The Governor's Task Force for the Regulation and Taxation of Marijuana Act was established by Executive Order and is tasked with making recommendations on the implementation of Question 2. The Task Force and its eight working groups will meet between March and May 2017 to develop their recommendations. You can find meeting dates, agendas, and materials on the Task Force page.