July 1st is the target date for recreational marijuana to go on sale in Nevada, after votes approved a ballot measure in November to make it legal. This has been the fastest turnaround from the ballot box to retail sales of any of the states that have passed similar legislation. The Nevada Tax Commission approved emergency regulations with stricter labeling and packaging requirements aimed at protecting children by prohibiting edibles being modeled after any brand of product primarily marketed to children or bear likenesses of animals, fruits or cartoon characters. Great news for child advocates, but what about adults? Will there be any warnings about the effects cannabis products have on a driver or the consequences of driving impaired after smoking a joint or two? Driving stoned is still against the law – not even passengers can smoke or consume marijuana in a vehicle under Nevada law. A marijuana DUI could land you a fine of up to $1,000, a suspended license and even jail time.
Edibles like brownies and gummies tend to produce a longer and stronger high than smoked marijuana, and new packaging laws in Nevada will reflect that potency. Every edible will be required to have a label warning consumers that it could take up to two hours to feel the high.
The roll-out of marijuana sales will be greeted with a bumper – a crowded field of players jockeying for their piece of a very lucrative pie. First in line, the Nevada Department of Taxation, imposing a 10% percent tax on the sale of recreational marijuana. In Clark County, about 32% percent of what consumers will pay will be taxes that include the 15% percent excise tax on cultivation, rolled into the retail price. Applications were accepted in May for businesses wanting to grow, produce and sell recreational marijuana for licenses that will allow medical marijuana dispensaries to sell cannabis products to adults 21 and older. Distribution licenses are available to liquor wholesalers, medical marijuana companies and operating medical marijuana distribution companies. It will cost businesses $5,000 to apply for a license, plus an additional fee if the company is awarded a license. Additional fees include:
- $20,000 for retail stores
- $30,000 for cultivation facilities
- $10,000 for production facilities
- $15,000 for testing labs
- $15,000 for distributors
Then there is the cost of the product to the consumer. According to the Coalition to Regulate Marijuana Like Alcohol, when pot sales start on July 1st, the price of an ounce of smokable marijuana will be somewhere in the range of $350 to $450. One ounce of dried marijuana flower produces about 40 to 60 cigarettes.
Only currently licensed and operating medical marijuana establishments in good standing with the state were eligible to apply for retail, production, cultivation and testing licenses. Distribution licenses are available to liquor wholesalers, medical marijuana companies and operating medical marijuana distribution companies. After 18 months, distribution of the product could be open to other distributors.
Here are a few more things to know about launch of recreational marijuana sales in Nevada, courtesy of the Las Vegas Review Journal:
- Dispensaries must be closed daily from 3 to 6 a.m.
- Most cities in Nevada will begin sales July 1st. Henderson currently has imposed a 6-month moratorium on recreational marijuana licenses
- The only difference between medical and recreational marijuana in Nevada will be the price at the sales counter.
- Medical marijuana prices currently charged in Las Vegas for ⅛ ounce range from about $30 to $60. Several stores estimate recreational costs will be up to $80 for ⅛ ounce, and over $400 for an ounce of higher grade plant.
- Both tourists and local residents can carry up to an ounce of marijuana and ⅛ ounce of concentrate – the same amount a person is legally able to buy beginning July 1st. However, smoking or consuming marijuana in public, on sidewalks or streets is not permitted, carrying a $600 fine. Marijuana use is banned on all gaming properties in the state. Tourists can’t smoke marijuana in hotel rooms or anywhere on resorts’ grounds.
- The marijuana industry is entirely cash-based, and credit cards are not accepted.
- Smoking marijuana will be allowed only in private residences.
- Complaints about public consumption should be reported to 311 because it is considered a nonviolent crime. Officers will continue to give calls in which there is imminent danger a higher priority.
- Stores can sell the inventory they have in-stock, but without a licensed distributor, no dispensary will be able to replenish its supply. Dispensary owners fear that they could run out of recreational products in weeks or even days since there is a distribution battle currently in play.