Cannabis Tax

Cannabis Tax

Nevada imposes a Cannabis Wholesale Tax at the cultivation level and a Cannabis Retail Tax on the sale of recreational cannabis products to consumers.

Cannabis Excise Tax regulates and supports the legal cannabis market in Nevada, ensuring that both consumers and businesses contribute to the state’s revenue through structured tax systems.

Wholesale Cannabis Tax: The wholesale cannabis tax is primarily applied to cultivators or producers of cannabis products.

  • Rate: 15% excise tax on the first wholesale sale (calculated on the Fair Market Value for Affiliate sales and calculated on the sales price for Non-affiliate sales).
  • Who Pays?: This tax is the responsibility of the cultivation facility.
  • Applies To: This tax is levied only on the first transfer of cannabis from the cultivation facility. It’s important to note that subsequent transfers are not subject to this tax.

Retail Cannabis Tax: Retail cannabis businesses, which sell cannabis products directly to consumers, are responsible for collecting and remitting this tax.

  • Rate: 10% retail excise tax on the sale price when sold for adult-use and not to a patient cardholder.  Cannabis or products sold to a patient cardholder are not subject to this 10% excise tax.
  • Who Pays?: This tax is collected from consumers by retail cannabis stores at the point of sale.
  • Applies To: All retail sales of cannabis or cannabis products.

Late Payments

  • Fiscal Year 2021: Any Medical Marijuana Tax revenue received during this period as late payments for tax obligations from prior fiscal years was combined with the Wholesale Cannabis Tax revenues.

NRS 678B requires the Department to determine the Fair Market Value at Wholesale of retail cannabis. Pursuant to permanent regulation LCB File No. R092-17, Fair Market Value is defined as the value established by the Nevada Department of Taxation (Department) based on the price that a buyer would pay to a seller in an arm’s length transaction for cannabis in the wholesale market.

  • Who should use this? This summary is used by cannabis wholesalers and distributors to determine the fair market value (FMV) of wholesale cannabis. This is used to calculate the excise tax due on cannabis products.

2025:

Determination: January 1, 2025 - March 31, 2025

2024:

Determination: October 1, 2024 - December 31, 2024

Determination: July 1, 2024 - September 30, 2024

Determination: April 1, 2024 - June 30, 2024

Determination: January 1,2024 - March 31, 2024

2023:

Determination: October 1, 2023 - December 31, 2023

Determination: July 1, 2023 - September 30, 2023

Determination: April 1, 2023 - June 30, 2023

Determination: January 1, 2023 - March 31, 2023

2022:

Determination: July 1, 2022 - December 31, 2022

Determination: January 1, 2022 - June 30, 2022

2021:

Determination: July 1, 2021 - December 31, 2021

Determination: January 1, 2021 - June 30, 2021

2019:

FMV Reporting Guidance Letter

Cultivation FMV Reporting Spreadsheet

Determination: July 1, 2019 - December 31, 2019

Determination: January 1, 2019 - June 30, 2019

2018:

Determination: July 1, 2018 - December 31, 2018

Determination: January 1, 2018 - June 30, 2018

2017:

 Determination: July 1, 2017 - December 31, 2017

Wholesale Cannabis Supplemental Transfer to Identical Ownership Reporting

Medical Cannabis Tax Return:  ONLY FOR MEDICAL CANNABIS SALES PRIOR TO JULY 1, 2017. An excise tax on the wholesale and retail sale of Medical Use Cannabis and Cannabis Products. The rate is 2% of the sales price every time it is sold regardless if sold for wholesale or retail. The tax return is due monthly and is imposed on the person making the sale.

 

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