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Recreational pot taxes headed to Nevada governor

Posted at 3:58 PM, Jun 05, 2017
and last updated 2017-06-05 19:32:00-04

Nevada lawmakers have given final approval to a regulatory structure to tax the cultivation and sale of recreational marijuana that became legal statewide at the beginning of this year.

RELATED: Recreational marijuana sales in Nevada could be a boon for Las Vegas

The Assembly sent SB487 to Gov. Brian Sandoval Monday on a vote of 32-9 with Republicans casting all of the "no" votes.

The Senate approved the measure late Sunday night and the Republican governor is expected to sign it into law.

It's projected to raise $70 million in state tax revenue over two years. All that money would go toward education, with the exception of a small portion that will be used to cover local government costs of licensing the operations.

The legislation levies a 10 percent tax on retail sales and 15 percent tax on marijuana growers. It would apply to pot grown and sold for medical as well as recreational use. Medical marijuana currently is taxed at 2 percent.

The Nevada Department of Taxation is currently working on special regulations that would allow some recreational sales to begin at existing medical dispensaries as soon as July 1. The permanent statewide structure has to be in place by Jan. 1, 2018.

The Nevada Legislature has also given final approval to a bill designed to help keep marijuana out of the hands of children.
The measure passed by the Assembly Monday would outlaw the packaging or labeling of marijuana in a way that would appeal to children.
Senate Bill 344 prohibits the use of cartoon characters, mascots or action figures to market marijuana. It also prohibits the use of animals or fruits in the labeling, and specifically requires the products not appear to be candy, lollipops or ice cream.
The legislation requires the labels to state "this is a marijuana product" and "keep out of the reach of children." It also requires disclosure of the potency of the product and a warning that the intoxicating effects may be delayed two hours after consumption.
Additionally, Assembly Bill 422 would outlaw marijuana vending machines.