Cannabis Tax Permit FAQs
Table of Contents
For Existing Entities Already Engaged in Selling Cannabis or Cannabis Products.
What is SB41 and why does it matter to cannabis businesses?
SB41 is a 2025 law requiring every person who sells cannabis or cannabis products in Nevada to apply for a Cannabis Tax Permit from the Department of Taxation no later than September 1, 2026 (in addition to any other required permits).
Who must obtain a Cannabis Tax Permit?
Any “seller,” which the bill defines as any person who engages in the business of selling cannabis or cannabis products, regardless of entity type (sole proprietor, partnership, corporation, etc.). This applies to all cannabis wholesalers, retailers, lounges and that sell cannabis.
If our company already holds a cannabis license from the Cannabis Compliance Board (CCB), do we still need this permit?
Yes. The Cannabis Tax Permit is separate from the CCB license and separate from the Sales Tax Permit required under NRS 360.597. You must hold all required permits.
When does the application window open?
Existing businesses must submit a paper application no later than September 1, 2026. This form will be provided by the Department.
What steps should businesses take now to prepare?
Begin immediately by:
- Ensuring you are registered in My Nevada Tax and have a valid username and password.
- Ensuring full compliance with all tax types administered by the Department (Sales & Use Tax, Modified Business Tax, Use Tax, Commerce Tax, and all cannabis excise taxes).
- If your entity is a corporation, gather documentation showing the signer’s authority so it can be uploaded with the application.
Will I be able to see my cannabis tax accounts in My Nevada Tax today?
Not before December 7, 2026. Wholesale and retail cannabis tax accounts will go live in My Nevada Tax on that date.
What information is required on the Cannabis Tax Permit application?
Under Section 6 of SB41, applications must include:
- The name under which the business operates.
- The physical location(s) of the business.
Any additional information requested by the Department.
** Application must be submitted by:
– Owner (if a natural person)
– A member/partner (if a partnership/association)
– An executive officer or authorized representative (if a corporation), with written evidence of authority attached.
Do I need a separate Cannabis Tax Permit for each business location?
Yes. Section 6 requires a permit for each place of business.
How long will it take for the Department to issue the permit?
The Department has 15 days from January 1, 2027 to issue the permit.
Can a permit be transferred or assigned to another person or location?
No. Section 7 states the permit is not assignable and is valid only for the person and location to which it was issued.
What happens if my business is not tax‑compliant when I apply?
The Department must not issue the permit until all noncompliance is cured (Section 14).
If noncompliance is not cured by January 1, 2027, the Department must notify the CCB, which will automatically suspend your cannabis license until compliance is achieved.
What if the Department believes I am not complying with excise tax laws after I have a permit?
Under Section 8, the Department must first send:
- A notice explaining the alleged noncompliance,
- The amount of delinquent tax, penalties, and interest, and
- Contact information to resolve the issue.
You then have 30 days to pay or enter into a payment agreement. Payment plans are subject to Department and/or Nevada Tax Commission review and approval.
When can the Department schedule a hearing for revocation or suspension?
Only if the issue is not resolved within the 30‑day cure period. You must receive at least 10 days written notice before the hearing.
Can we continue operating while a hearing is pending?
Yes. Section 8(9) allows the business to continue operating until a final decision is issued and sent to the CCB.
What happens if the Department revokes or suspends the permit?
Once a final decision is issued and sent to the CCB, the CCB must suspend the cannabis license tied to that business. The suspension remains in effect until the liability is paid in full or cured.
Can we appeal a revocation or suspension decision?
Yes. You have 30 days from service of the decision to appeal to the Nevada Tax Commission.
After the Commission issues its decision, you may seek judicial review only after paying the liability or entering a payment agreement (Section 9).
What are the key deadlines for existing sellers?
September 1, 2026 – Deadline for paper application submission for existing Cannabis establishments.
December 7, 2026 – Wholesale and retail cannabis tax accounts will go live in My Nevada Tax.
January 1, 2027 – Permit Denial Notices will be generated and CCB will be notified to suspend the corresponding Cannabis License(s).
January 15, 2027 – Department deadline for all approved permits to be mailed. No seller may legally operate without a Cannabis Tax Permit.
What happens if we fail to apply by the required deadlines?
If you are operating on or before January 1, 2027 and do not submit an application for a Cannabis Tax Permit for each location by September 1, 2026, the Department must notify the CCB and your corresponding cannabis license will be suspended until a permit is issued.
Note: FAQs are for general guidance only. For written advice as it relates to your business, request an advisory opinion from the Department.