Medical Marijuana Will Be Sold With A 2 Percent Wholesale Tax.

Analysts say it could create over a quarter of a million …more The legalized marijuana industry is growing more than pot. Analysts say it could create over a quarter of a million jobs while other industries decline. Carson City — While Nevadans have been able to legally smoke marijuana since January, starting in July they will be able to legally buy it.  On Monday, the Nevada Tax Commission approved temporary regulations for the Nevada Department of Taxation’s “early start” recreational marijuana program. The program allows licensed medical marijuana establishments that are currently in good standing with the state to apply by May 31 for temporary licenses to cultivate, produce, distribute or sell recreational marijuana.  “These regulations need to be adopted today. If we don’t have a temporary program, we will not have dollars in the governor’s budget,” said Deonne Contine, executive director of the Department of Taxation.  In a withering dissent, a judge called it “outrageous” and “ridiculous” that Louisiana’s highest court affirmed an 18-year sentence for a man who possessed 18 grams of marijuana. “Good standing” means that the establishments have established a clean compliance history for the past six months, meaning businesses that opened this year are currently ineligible. Businesses will have additional opportunities to apply for the temporary licenses past May, although all licenses will expire at the end of March 2018.  A hefty chunk of program revenue will come from the annual fees collected from the industry. Outside of the uniform $5,000 application fee for all program licenses, the licenses once acquired will cost:  $30,000 for a cultivation facility (growing) $10,000 for a production/manufacturing facility (packaging) $15,000 for a marijuana distributor (transport) Gov. Brian Sandoval budgeted about $70 million in recreational marijuana revenue in his two-year budget, an incentive for the state to kickstart the program sooner rather than later.  Several legislative bills could change that tax structure, but, for the time being, recreational marijuana, which will be separated from medical marijuana during the grow period, will be sold with a 15 percent wholesale tax. Medical marijuana will be sold with a 2 percent wholesale tax. Medical marijuana also carries a 2 percent tax applied at production and another 2 percent tax applied at sale.  More: Could Nevada’s tribal lands be the next marijuana frontier?

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