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Running a retail cannabis business can be taxing if you don’t know what you’re doing. Any small business requires a level of professionalism, but a cannabis business is unique in that the laws of each state, county, and even city differ across the U.S.
Without a consensus, even a seasoned pro in one state will still have to study up on other states, and even once you get the hang of a state’s laws, they can quickly change at any given election. Here’s everything you need to know about operating a compliant cannabis business in Nevada, and the state’s cannabis laws.
We’ll take particular care to point out differences that may exist in Las Vegas and other areas.
Yes.
The Nevada Department of Taxation (DoT) is responsible for both recreational and medical licenses as of July 1, 2017. The previous medical marijuana program was run by the Nevada Division of Public and Behavioral Health (DPBH).
There are five retail licenses available in Nevada – Cultivation Facility, Distributor, Product Manufacturing Facility, Testing Facility, and Retail Store. For now, only licensed medical marijuana facilities can apply for recreational licenses, but the DoT may change this in November 2018. Sign up here to be notified when it happens.
Recreational retail license applications are accepted from September 8 at 8am through September 20, 2018 at 5pm.
A retail application costs $5,000 application fee for Nevada recreational marijuana. Only cash, cashier’s checks, and money orders are accepted and must be made out to the “Nevada Department of Taxation”. An appointment is necessary for in-person cash payments.
If awarded a license, the fees are: $20,000 for Retail Stores, $30,000 for Cultivation Facility, $15,000 for Distributors, $10,000 for Product Manufacturing, and $15,000 for Testing Facility.
The city of Las Vegas also has a separate licensing process. You must have your state license before applying for a city license. Medical licenses in Las Vegas cost $20,000 for the first 5,000 sq ft for Cultivation, $25,000 for Production, $75,000 and $100 initial gross fee for Dispensary, and $10,000 for Independent Testing Laboratory.
All fees listed above are annual fees.
A retail license is required to service recreational customers. A dispensary or caregiver license is needed to serve medical patients. Retail licenses are only being issued to medical license holders. There is no difference between medical and recreational products, so medical cards only affect pricing, as stores can sell both.
The state has so far issued 61 adult-use retail store licenses to medical dispensaries. The statewide cap is 132, and distribution is population-based by county. It’s unclear yet when licenses will be opened to the general public.
Yes. In fact, that’s the only way at this time.
A few cities, like Elko and Fallon, ban cannabis businesses. It’s always best to discuss your potential business venture with local government and authorities.
You may need temporary food permits from the DPBH for edibles. The state leaves this matter up to local governments, and you’ll find a High Times Cannabis Cup regularly hosted in Las Vegas.
The location of your cannabis events determines which license you’ll need to pursue. If you’re attending an event like a High Times Cannabis Cup, you’re actually a vendor at that event.
Holding your own offsite events puts you in High Times position where you need to file the proper city and county licenses. Work with the venue to ensure this is completed in a timely manner.
Yes, you can hold more than one license of any type. You can hold events on your premises, host offsite events, or attend offsite events proudly representing your business.
Reading, understanding, and consistently applying Nevada state cannabis regulations is essential. During the application process, your entire organization will be tested on compliance competency.
Also track everything. Record every interaction. Have every dollar, plant, and product tracked from seed to sale. A solid POS that can automatically interface with the state’s tracking system is only the start of what you’ll need to stay compliant.
Required cannabis business security measures will cost at least $100,000. Video surveillance, security lighting, transportation and waste disposal processes, platforms, and procedures need to be in place from day one.
Cloud video data storage will be a significant cost for startup businesses. Plan ahead for this.
It’s a funny question, because you’ll be labeling all product that enters and exits your retail store. There are no specific regulations about packaging on premises, but cannabis must be already sealed before transport.
Yes and no. Generally you can’t sell alcohol or tobacco at cannabis dispensaries or cannabis at smoke shops, liquor shops, etc. Terpenes (basically cannabis essential oils) and hemp products have different rules. It’s possible to create cannabis-flavored products that don’t include THC.
Also, tinctures contain alcohol, so even though THC vodka or beer (or even vodka or beer without cannabis) would be passe in Nevada dispensaries, alcohol-based tinctures are allowed.
You can. So long as you meet the requirements, you can house everything in one building. Each license can be obtained and stacked on each other.
Public consumption is not allowed, so you can’t sample in store. However, you can give product away.
Your store can be open anytime, and many retail shops in Las Vegas are open 24/7.
State approval is required for any cannabis-related advertisements.
18 for medical and 21 for recreational.
Nevada’s system of record for the cannabis industry is Franwell’s Metrc POS platform. Your POS should ultimately report directly to Metrc directly to seamlessly remain compliant.
You’ll need to pay Franwell $40 per month per Metrc license and $0.25 to $0.45 for package and plant tags.
