The Nevada Senate Revenue and Economic Development Committee prefiled Senate Bill 41 today, a proposal designed to amend the state’s cannabis tax regulations.
The bill, which will be considered during the January 2025 legislative session, focuses on the establishment of new requirements for cannabis businesses regarding tax permits.
Currently, Nevada law imposes excise taxes on the wholesale and retail sale of cannabis and requires businesses selling tangible personal property, including cannabis establishments, to obtain permits from the Department of Taxation. Senate Bill 41 would expand on these requirements by mandating a new cannabis tax permit system specifically for cannabis businesses.
The proposed legislation requires every licensed cannabis establishment, including retail stores and consumption lounges, to obtain a separate cannabis tax permit for each place of business. The Department of Taxation would issue these permits and provide applicants with a clear explanation of their tax liabilities. Cannabis tax permits would be non-transferable and valid only at the designated business location, ensuring compliance at specific sites.
The bill also strengthens enforcement mechanisms. It grants the Department of Taxation authority to revoke or suspend a cannabis tax permit if a business fails to comply with state tax laws or regulations. Any revocation or suspension decision could be appealed to the Nevada Tax Commission. Additionally, the Department would notify the Cannabis Compliance Board of such actions, prompting suspension of the business’s cannabis license until tax liabilities are resolved.
Another provision requires businesses disputing tax decisions to pay their tax liability or enter a repayment agreement before seeking judicial review.
For the full text of SB 41, click here.
