Legalization in Nevada: Here’s What Happens Next

Nevada, you deserve a round of applause. You’ve just legalized!

Here’s the reality check: Retail cannabis shops will not open anytime soon. If you’ve been paying attention to how legalization played out in Washington, Colorado, Alaska, and Oregon, you know that it doesn’t happen overnight.

Question 2 will become effective on January 1, 2017. On and after that date, any adult 21 and older can possess up to one ounce of cannabis and up to an eighth-ounce of cannabis concentrate without fear of arrest or prosecution. That’s not a license to consume cannabis in public. In fact, it’s worth noting that public consumption of cannabis could land you a $600 fine, so don’t abuse the privilege.

Also effective New Year’s Day: Nevada residents may also grow up to six (6) plants for personal use in an enclosed, secure place. Keep in mind, however, that the plant limit per household is twelve (12) plants total. Even if there are multiple adults in your household, remember – twelve plants. Total.

It won’t happen overnight, but by January 1, 2018, the Department of Taxation is required to not only have drafted all necessary rules and regulations, but also to begin accepting applications for legal cannabis stores.

What about taxes? There will be a 15 percent excise tax, but it only applies to wholesale cannabis transactions. For customers visiting a retail cannabis shop, only the standard state sales taxes apply, which means the government’s bite happens before you even see the product. And it’s relatively small. (Washington state cannabis customers pay 37 percent!)

So when will you be able to purchase cannabis? That really depends on how quickly the Department can get its ducks in a row.

Nevada

• 1 ounce or less of cannabis flower.
• 1/8 of an ounce or less of cannabis concentrates (3.5 grams)
• Home grow: Up to 6 plants for personal use in an enclosed, secure space; up to 12 plants per residence.
• Proposed marijuana establishments must abide by zoning or land use laws adopted by the locality in which it will be located.
• Public consumption is not permitted. Violators are guilty of a misdemeanor and a fine of no more than $600.
• Delivery services are not permitted.
• 15% excise tax on wholesales of cannabis by cultivation facilities.

Timeline

• Jan. 1, 2017: Question 2 becomes effective. Possession, private consumption, and home grow become legal.
• Jan. 1, 2018: Deadline for the Nevada Department of Taxation to adopt regulations and begin accepting applications for marijuana establishments.
• 90 days after receiving first license application: Deadline for Department of Taxation to issue a license or send notice of rejection