[Rev. 11/21/2013 11:10:09 AM--2013]

CHAPTER 372A - TAX ON CONTROLLED SUBSTANCES

NRS 372A.010        Definitions.

NRS 372A.020        “Controlled substance” defined.

NRS 372A.030        “Marijuana” defined.

NRS 372A.040        “Sell” defined.

NRS 372A.050        Department to adopt regulations.

NRS 372A.060        Applicability of chapter; no immunity from criminal prosecution. [Effective through March 31, 2014.]

NRS 372A.060        Applicability of chapter; no immunity from criminal prosecution. [Effective April 1, 2014.]

NRS 372A.070        Registration with Department as dealer; payment and calculation of tax; identifying information in tax return; civil penalty; action for enforcement. [Effective through March 31, 2014.]

NRS 372A.070        Registration with Department as dealer; payment and calculation of tax on controlled substances other than marijuana and marijuana products; identifying information in tax return; civil penalty; action for enforcement. [Effective April 1, 2014.]

NRS 372A.075        Tax on sale of marijuana and marijuana products: Imposition; rates; distribution of revenue collected; duty of Department to regularly review rates. [Effective April 1, 2014.]

NRS 372A.080        Information and records concerning dealer confidential; limitations on use and admissibility of information; penalty for disclosure.

NRS 372A.090        Revenue stamps: Design, printing and sale; record of stamps sold.

NRS 372A.100        Destruction of spoiled or unusable revenue stamps.

NRS 372A.110        Deposit and allocation of taxes, fees and penalties collected.

NRS 372A.120        Delivery of controlled substances obtained by Department; law enforcement agency to notify Department concerning person having possession of controlled substance.

NRS 372A.130        Action to enjoin assessment or collection of tax, interest or penalty barred.

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      NRS 372A.010  Definitions.  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 372A.020, 372A.030 and 372A.040 have the meanings ascribed to them in those sections.

      (Added to NRS by 1987, 1737)

      NRS 372A.020  “Controlled substance” defined.  “Controlled substance” includes:

      1.  A drug, substance or immediate precursor listed in schedules I to V, inclusive, of the regulations adopted by the State Board of Pharmacy; and

      2.  A substance which:

      (a) Was manufactured by a person who at the time was not currently registered with the Secretary of Health and Human Services; and

      (b) Is an imitation of or intended for use as a substitute for a substance described in subsection 1.

      (Added to NRS by 1987, 1737)

      NRS 372A.030  “Marijuana” defined.  “Marijuana” has the meaning ascribed to it in NRS 453.096.

      (Added to NRS by 1987, 1737)

      NRS 372A.040  “Sell” defined.  “Sell” includes exchange, barter, solicitation or receipt of an order, transfer to another for sale or resale, possession or transportation in contravention of this chapter and any other transfer for any consideration or a promise, obtained directly or indirectly.

      (Added to NRS by 1987, 1737)

      NRS 372A.050  Department to adopt regulations.  The Department shall adopt all necessary regulations to carry out the provisions of this chapter.

      (Added to NRS by 1987, 1737)

      NRS 372A.060  Applicability of chapter; no immunity from criminal prosecution. [Effective through March 31, 2014.]

      1.  This chapter does not apply to any person who is registered or exempt from registration pursuant to NRS 453.226 or any other person who is lawfully in possession of a controlled substance.

      2.  Compliance with this chapter does not immunize a person from criminal prosecution for the violation of any other provision of law.

      (Added to NRS by 1987, 1737)

      NRS 372A.060  Applicability of chapter; no immunity from criminal prosecution. [Effective April 1, 2014.]

      1.  This chapter does not apply to:

      (a) Any person who is registered or exempt from registration pursuant to NRS 453.226 or any other person who is lawfully in possession of a controlled substance; or

      (b) Except as otherwise provided in NRS 372A.075, any person who acquires, possesses, cultivates, manufactures, delivers, transfers, transports, supplies, sells or dispenses marijuana for the medical use of marijuana as authorized pursuant to chapter 453A of NRS.

      2.  Compliance with this chapter does not immunize a person from criminal prosecution for the violation of any other provision of law.

      (Added to NRS by 1987, 1737; A 2013, 3727, effective April 1, 2014)

      NRS 372A.070  Registration with Department as dealer; payment and calculation of tax; identifying information in tax return; civil penalty; action for enforcement. [Effective through March 31, 2014.]

      1.  A person shall not sell, offer to sell or possess with the intent to sell a controlled substance unless he or she first:

      (a) Registers with the Department as a dealer in controlled substances and pays an annual fee of $250; and

      (b) Pays a tax on:

             (1) Each gram of marijuana, or portion thereof, of $100;

             (2) Each gram of any other controlled substance, or portion thereof, of $1,000; and

             (3) Each 50 dosage units of a controlled substance that is not sold by weight, or portion thereof, of $2,000.

      2.  For the purpose of calculating the tax imposed by subparagraphs (1) and (2) of paragraph (b) of subsection 1, the controlled substance must be measured by the weight of the substance in the dealer’s possession, including the weight of any material, compound, mixture or preparation that is added to the controlled substance.

      3.  The Department shall not require a registered dealer to give his or her name, address, social security number or other identifying information on any return submitted with the tax.

      4.  Any person who violates subsection 1 is subject to a civil penalty of 100 percent of the tax in addition to the tax imposed by subsection 1. Any civil penalty imposed pursuant to this subsection must be collected as part of the tax.

      5.  The district attorney of any county in which a dealer resides may institute and conduct the prosecution of any action for violation of subsection 1.

      6.  Property forfeited or subject to forfeiture pursuant to NRS 453.301 must not be used to satisfy a fee, tax or penalty imposed by this section.

      (Added to NRS by 1987, 1738; A 1989, 814)

      NRS 372A.070  Registration with Department as dealer; payment and calculation of tax on controlled substances other than marijuana and marijuana products; identifying information in tax return; civil penalty; action for enforcement. [Effective April 1, 2014.]

      1.  A person shall not sell, offer to sell or possess with the intent to sell a controlled substance unless he or she first:

      (a) Registers with the Department as a dealer in controlled substances and pays an annual fee of $250; and

      (b) Pays a tax on:

            (1) Each gram of a controlled substance, or portion thereof, of $1,000; and

             (2) Each 50 dosage units of a controlled substance that is not sold by weight, or portion thereof, of $2,000.

      2.  For the purpose of calculating the tax imposed by subparagraph (1) of paragraph (b) of subsection 1, the controlled substance must be measured by the weight of the substance in the dealer’s possession, including the weight of any material, compound, mixture or preparation that is added to the controlled substance.

      3.  The Department shall not require a registered dealer to give his or her name, address, social security number or other identifying information on any return submitted with the tax.

      4.  Any person who violates subsection 1 is subject to a civil penalty of 100 percent of the tax in addition to the tax imposed by subsection 1. Any civil penalty imposed pursuant to this subsection must be collected as part of the tax.

      5.  The district attorney of any county in which a dealer resides may institute and conduct the prosecution of any action for violation of subsection 1.

      6.  Property forfeited or subject to forfeiture pursuant to NRS 453.301 must not be used to satisfy a fee, tax or penalty imposed by this section.

      7.  As used in this section:

      (a) “Controlled substance” does not include marijuana, edible marijuana products or marijuana-infused products.

      (b) “Edible marijuana products” has the meaning ascribed to it in NRS 453A.101.

      (c) “Marijuana-infused products” has the meaning ascribed to it in NRS 453A.112.”

      (Added to NRS by 1987, 1738; A 1989, 814; 2013, 3727, effective April 1, 2014)

      NRS 372A.075  Tax on sale of marijuana and marijuana products: Imposition; rates; distribution of revenue collected; duty of Department to regularly review rates. [Effective April 1, 2014.]

      1.  An excise tax is hereby imposed on each wholesale sale in this State of marijuana by a cultivation facility to another medical marijuana establishment at the rate of 2 percent of the sales price of the marijuana. The excise tax imposed pursuant to this subsection is the obligation of the cultivation facility.

      2.  An excise tax is hereby imposed on each wholesale sale in this State of edible marijuana products or marijuana-infused products by a facility for the production of edible marijuana products or marijuana-infused products to another medical marijuana establishment at the rate of 2 percent of the sales price of those products. The excise tax imposed pursuant to this subsection is the obligation of the facility for the production of edible marijuana products or marijuana-infused products which sells the edible marijuana products or marijuana-infused products to the other medical marijuana establishment.

      3.  An excise tax is hereby imposed on each retail sale in this State of marijuana, edible marijuana products or marijuana-infused products by a medical marijuana dispensary at the rate of 2 percent of the sales price of the marijuana, edible marijuana products or marijuana-infused products. The excise tax imposed pursuant to this subsection:

      (a) Is the obligation of the medical marijuana dispensary.

      (b) Is separate from and in addition to any general state and local sales and use taxes that apply to retail sales of tangible personal property.

      (c) Must be considered part of the total retail price to which general state and local sales and use taxes apply.

      4.  The revenues collected from the excise taxes imposed pursuant to subsections 1, 2 and 3 must be distributed as follows:

      (a) Seventy-five percent must be paid over as collected to the State Treasurer to be deposited to the credit of the State Distributive School Account in the State General Fund.

      (b) Twenty-five percent must be expended to pay the costs of the Division of Public and Behavioral Health of the Department of Health and Human Services in carrying out the provisions of NRS 453A.320 to 453A.370, inclusive.

      5.  The Department shall review regularly the rates of the excise taxes imposed pursuant to subsections 1, 2 and 3 and make recommendations to the Legislature, as appropriate, regarding adjustments that the Department determines would benefit the residents of this State.

      6.  As used in this section:

      (a) “Cultivation facility” has the meaning ascribed to it in NRS 453A.056.

      (b) “Edible marijuana products” has the meaning ascribed to it in NRS 453A.101.

      (c) “Facility for the production of edible marijuana products or marijuana-infused products” has the meaning ascribed to it in NRS 453A.105.

      (d) “Marijuana-infused products” has the meaning ascribed to it in NRS 453A.112.

      (e) “Medical marijuana dispensary” has the meaning ascribed to it in NRS 453A.115.

      (f) “Medical marijuana establishment” has the meaning ascribed to it in NRS 453A.116.

      (Added to NRS by 2013, 3726, effective April 1, 2014)

      NRS 372A.080  Information and records concerning dealer confidential; limitations on use and admissibility of information; penalty for disclosure.

      1.  Except as otherwise provided in NRS 239.0115, all information which is submitted to the Department by or on behalf of a dealer in controlled substances pursuant to this chapter and all records of the Department which contain the name, address or any other identifying information concerning a dealer are confidential.

      2.  No criminal prosecution may be initiated on the basis of:

      (a) Information which was submitted to the Department; or

      (b) Evidence derived from information submitted to the Department, pursuant to this chapter or any regulation adopted pursuant thereto.

      3.  No information described in paragraph (a) or (b) of subsection 2 is admissible in a criminal prosecution, unless the prosecution shows that the information:

      (a) Was independently discovered; or

      (b) Inevitably would have been discovered based on independent information.

      4.  This section does not prohibit the Department from publishing statistics that do not disclose the identity of a dealer or the contents of a particular return or report submitted to the Department by a dealer.

      5.  Any person who releases or reveals confidential information in violation of this section is guilty of a gross misdemeanor.

      (Added to NRS by 1987, 1738; A 2007, 2094)

      NRS 372A.090  Revenue stamps: Design, printing and sale; record of stamps sold.

      1.  The Department shall:

      (a) Design suitable stamps for the purpose of this chapter.

      (b) Have as many stamps printed as may be required.

      (c) Sell the stamps to dealers in controlled substances who are registered.

      2.  The stamps must be serially numbered and the Department shall maintain a record of the number of each stamp with the name of the dealer to whom it was sold.

      (Added to NRS by 1987, 1738)

      NRS 372A.100  Destruction of spoiled or unusable revenue stamps.  Upon the written authorization of the State Board of Examiners, any spoiled or unusable stamps in the possession of the Department may be destroyed. The written authorization of the State Board of Examiners must set forth the number, denomination and face value of the stamps.

      (Added to NRS by 1987, 1739)

      NRS 372A.110  Deposit and allocation of taxes, fees and penalties collected.

      1.  All taxes and fees collected by the Department pursuant to this chapter, after deducting the actual cost of producing the stamps and administering this chapter, must be deposited with the State Treasurer for credit to the State General Fund and accounted for separately.

      2.  The Governor or his or her designee shall administer the money credited to the State General Fund pursuant to subsection 1. The money may be expended only for grants to county and city law enforcement agencies for the enforcement of chapter 453 of NRS.

      3.  Any civil penalty collected by a district attorney pursuant to NRS 372A.070 must be deposited in the county treasury for the purposes of law enforcement and conducting criminal prosecutions.

      (Added to NRS by 1987, 1739; A 1989, 814)

      NRS 372A.120  Delivery of controlled substances obtained by Department; law enforcement agency to notify Department concerning person having possession of controlled substance.

      1.  The Department shall immediately deliver any controlled substances which come into its possession in the course of administering this chapter, with a full accounting to the Investigation Division of the Department of Public Safety.

      2.  The Investigation Division of the Department of Public Safety and every other law enforcement agency shall notify the Department of each person it discovers having possession of a controlled substance and the serial number of any stamps affixed.

      (Added to NRS by 1987, 1739; A 2001, 2601)

      NRS 372A.130  Action to enjoin assessment or collection of tax, interest or penalty barred.  No person may bring suit to enjoin the assessment or collection of any taxes, interest or civil penalties imposed by this chapter.

      (Added to NRS by 1987, 1739)