[Rev. 5/24/2016 3:27:54 PM--2015]

CHAPTER 372A - TAX ON CONTROLLED SUBSTANCES

GENERAL PROVISIONS

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.

CONTROLLED SUBSTANCES TAX

NRS 372A.060        Applicability; no immunity from criminal prosecution.

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.

NRS 372A.075        Tax on sale of marijuana and marijuana products: Imposition; rates; distribution of revenue collected; duty of Department to regularly review rates. [Replaced in revision by NRS 372A.290.]

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.

MEDICAL MARIJUANA TAX

General Provisions

NRS 372A.200        Definitions.

NRS 372A.210        “Cultivation facility” defined.

NRS 372A.220        “Excise tax on medical marijuana” defined.

NRS 372A.230        “Facility for the production of edible marijuana products or marijuana-infused products” defined.

NRS 372A.240        “Medical marijuana dispensary” defined.

NRS 372A.250        “Taxpayer” defined.

 

Administration

NRS 372A.260        Applicability of chapter 360 of NRS.

NRS 372A.270        Maintenance and availability of records of taxpayer; penalty.

NRS 372A.280        Examination of records by Department; payment of expenses of Department for examination of records outside State.

 

Imposition

NRS 372A.290        Imposition and amount of tax; distribution of revenue collected.

 

Overpayments and Refunds

NRS 372A.300        Certification of excess amount collected; credit and refund.

NRS 372A.310        Limitations on claims for refund or credit; form and contents of claim; failure to file claim constitutes waiver.

NRS 372A.320        Interest on overpayments; disallowance of interest.

NRS 372A.330        Service of notice of rejection of claim for refund or credit; rights of claimant upon failure of Department to serve notice of action on claim; appeal to Nevada Tax Commission; judicial review.

NRS 372A.340        Standing to file petition for judicial review; failure to file petition constitutes waiver.

NRS 372A.350        Judgment for claimant: Credit against other amounts due required before any refund; allowance of interest for amount erroneously or illegally collected.

NRS 372A.360        Injunction or other process to prevent collection of tax prohibited; filing of claim is condition precedent to maintaining action for refund.

 

Miscellaneous Provisions

NRS 372A.370        Prohibited acts; penalty.

NRS 372A.380        Remedies of State are cumulative.

_________

GENERAL PROVISIONS

      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)

CONTROLLED SUBSTANCES TAX

      NRS 372A.060  Applicability; no immunity from criminal prosecution.

      1.  The provisions of NRS 372A.060 to 372A.130, inclusive, do 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) 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 the provisions of NRS 372A.060 to 372A.130, inclusive, 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; 2015, 2261)

      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.

      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)

      NRS 372A.075  Tax on sale of marijuana and marijuana products: Imposition; rates; distribution of revenue collected; duty of Department to regularly review rates.  [Replaced in revision by NRS 372A.290.]

 

      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 NRS 372A.060 to 372A.130, inclusive, 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 NRS 372A.060 to 372A.130, inclusive, 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; 2015, 2263)

      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 NRS 372A.060 to 372A.130, inclusive.

      (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; A 2015, 2263)

      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 NRS 372A.060 to 372A.130, inclusive, after deducting the actual cost of producing the stamps and administering the provisions of those sections, 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; 2015, 2263)

      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 NRS 372A.060 to 372A.130, inclusive, 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; 2015, 2263)

      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 NRS 372A.060 to 372A.130, inclusive.

      (Added to NRS by 1987, 1739; A 2015, 2264)

MEDICAL MARIJUANA TAX

General Provisions

      NRS 372A.200  Definitions.  As used in NRS 372A.200 to 372A.380, inclusive, unless the context otherwise requires, the words and terms defined in NRS 372A.210 to 372A.250, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 2015, 2259)

      NRS 372A.210  “Cultivation facility” defined.  “Cultivation facility” has the meaning ascribed to it in NRS 453A.056.

      (Added to NRS by 2015, 2259)

      NRS 372A.220  “Excise tax on medical marijuana” defined.  “Excise tax on medical marijuana” means any of the excise taxes imposed by NRS 372A.290.

      (Added to NRS by 2015, 2259)

      NRS 372A.230  “Facility for the production of edible marijuana products or marijuana-infused products” defined.  “Facility for the production of edible marijuana products or marijuana-infused products” has the meaning ascribed to it in NRS 453A.105.

      (Added to NRS by 2015, 2259)

      NRS 372A.240  “Medical marijuana dispensary” defined.  “Medical marijuana dispensary” has the meaning ascribed to it in NRS 453A.115.

      (Added to NRS by 2015, 2259)

      NRS 372A.250  “Taxpayer” defined.  “Taxpayer” means a:

      1.  Cultivation facility;

      2.  Facility for the production of edible marijuana products or marijuana-infused products; or

      3.  Medical marijuana dispensary.

      (Added to NRS by 2015, 2259)

Administration

      NRS 372A.260  Applicability of chapter 360 of NRS.  The provisions of chapter 360 of NRS relating to the payment, collection, administration and enforcement of taxes, including, without limitation, any provisions relating to the imposition of penalties and interest, shall be deemed to apply to the payment, collection, administration and enforcement of the excise tax on medical marijuana to the extent that those provisions do not conflict with the provisions of NRS 372A.200 to 372A.380, inclusive.

      (Added to NRS by 2015, 2259)

      NRS 372A.270  Maintenance and availability of records of taxpayer; penalty.

      1.  Each person responsible for maintaining the records of a taxpayer shall:

      (a) Keep such records as may be necessary to determine the amount of the liability of the taxpayer pursuant to the provisions of NRS 372A.200 to 372A.380, inclusive;

      (b) Preserve those records for 4 years or until any litigation or prosecution pursuant to NRS 372A.200 to 372A.380, inclusive, is finally determined, whichever is longer; and

      (c) Make the records available for inspection by the Department upon demand at reasonable times during regular business hours.

      2.  Any person who violates the provisions of subsection 1 is guilty of a misdemeanor.

      (Added to NRS by 2015, 2259)

      NRS 372A.280  Examination of records by Department; payment of expenses of Department for examination of records outside State.

      1.  To verify the accuracy of any return filed by a taxpayer or, if no return is filed, to determine the amount required to be paid, the Department, or any person authorized in writing by the Department, may examine the books, papers and records of any person who may be liable for the excise tax on medical marijuana.

      2.  Any person who may be liable for the excise tax on medical marijuana and who keeps outside of this State any books, papers and records relating thereto shall pay to the Department an amount equal to the allowance provided for state officers and employees generally while traveling outside of the State for each day or fraction thereof during which an employee of the Department is engaged in examining those documents, plus any other actual expenses incurred by the employee while he or she is absent from his or her regular place of employment to examine those documents.

      (Added to NRS by 2015, 2259)

Imposition

      NRS 372A.290  Imposition and amount of tax; distribution of revenue collected.

      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.  As used in this section:

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

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

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

      (Added to NRS by 2013, 3726; A 2015, 2262) — (Substituted in revision for NRS 372A.075)

Overpayments and Refunds

      NRS 372A.300  Certification of excess amount collected; credit and refund.  If the Department determines that the excise tax on medical marijuana or any penalty or interest has been paid more than once or has been erroneously or illegally collected or computed, the Department shall set forth that fact in the records of the Department and certify to the State Board of Examiners the amount collected in excess of the amount legally due and the person from whom it was collected or by whom it was paid. If approved by the State Board of Examiners, the excess amount collected or paid must, after being credited against any amount then due from the person in accordance with NRS 360.236, be refunded to the person or his or her successors in interest.

      (Added to NRS by 2015, 2260)

      NRS 372A.310  Limitations on claims for refund or credit; form and contents of claim; failure to file claim constitutes waiver.

      1.  Except as otherwise provided in NRS 360.235 and 360.395:

      (a) No refund of the excise tax on medical marijuana may be allowed unless a claim for refund is filed with the Department within 3 years after the last day of the month following the month for which the overpayment was made.

      (b) No credit may be allowed after the expiration of the period specified for filing claims for refund unless a claim for credit is filed with the Department within that period.

      2.  Each claim must be in writing and must state the specific grounds upon which the claim is founded.

      3.  The failure to file a claim within the time prescribed in subsection 1 constitutes a waiver of any demand against the State on account of any overpayment.

      (Added to NRS by 2015, 2260)

      NRS 372A.320  Interest on overpayments; disallowance of interest.

      1.  Except as otherwise provided in subsection 2, NRS 360.320 or any other specific statute, interest must be paid upon any overpayment of the excise tax on medical marijuana at the rate set forth in, and in accordance with the provisions of, NRS 360.2937.

      2.  If the Department determines that any overpayment has been made intentionally or by reason of carelessness, the Department shall not allow any interest on the overpayment.

      (Added to NRS by 2015, 2260)

      NRS 372A.330  Service of notice of rejection of claim for refund or credit; rights of claimant upon failure of Department to serve notice of action on claim; appeal to Nevada Tax Commission; judicial review.

      1.  Within 30 days after rejecting a claim for refund or credit in whole or in part, the Department shall serve written notice of its action on the claimant in the manner prescribed for service of a notice of deficiency determination. Within 30 days after the date of service of the notice, a claimant who is aggrieved by the action of the Department may file an appeal with the Nevada Tax Commission.

      2.  If the Department fails to serve notice of its action on a claim for refund or credit within 6 months after the claim is filed, the claimant may consider the claim to be disallowed and file an appeal with the Nevada Tax Commission within 30 days after the last day of the 6-month period.

      3.  The final decision of the Nevada Tax Commission on an appeal is a final decision for the purposes of judicial review pursuant to chapter 233B of NRS.

      (Added to NRS by 2015, 2260)

      NRS 372A.340  Standing to file petition for judicial review; failure to file petition constitutes waiver.

      1.  A proceeding for judicial review of a decision of the Nevada Tax Commission may not be commenced or maintained by an assignee of the claimant or by any other person other than the person who paid the amount at issue in the claim.

      2.  The failure of a claimant to file a timely petition for judicial review constitutes a waiver of any demand against the State on account of any overpayment.

      (Added to NRS by 2015, 2260)

      NRS 372A.350  Judgment for claimant: Credit against other amounts due required before any refund; allowance of interest for amount erroneously or illegally collected.

      1.  If judgment is rendered for the claimant in a proceeding for judicial review, any amount found by the court to have been erroneously or illegally collected must first be credited to any tax due from the claimant. The balance of the amount must be refunded to the claimant.

      2.  In any such judgment, interest must be allowed at the rate of 3 percent per annum upon any amount found to have been erroneously or illegally collected from the date of payment of the amount to the date of allowance of credit on account of the judgment, or to a date preceding the date of the refund warrant by not more than 30 days. The date must be determined by the Department.

      (Added to NRS by 2015, 2261)

      NRS 372A.360  Injunction or other process to prevent collection of tax prohibited; filing of claim is condition precedent to maintaining action for refund.

      1.  No injunction, writ of mandate or other legal or equitable process may issue in any suit, action or proceeding in any court against this State or against any officer of the State to prevent or enjoin the collection of the excise tax on medical marijuana or any amount of tax, penalty or interest required to be collected.

      2.  No suit or proceeding, including, without limitation, a proceeding for judicial review, may be maintained in any court for the recovery of any amount alleged to have been erroneously or illegally determined or collected unless a claim for refund or credit has been filed within the time prescribed in NRS 372A.310.

      (Added to NRS by 2015, 2261)

Miscellaneous Provisions

      NRS 372A.370  Prohibited acts; penalty.

      1.  A person shall not, with intent to defraud the State or evade payment of the excise tax on medical marijuana or any part of the tax:

      (a) Make, cause to be made or permit to be made any false or fraudulent return or declaration or false statement in any return or declaration.

      (b) Make, cause to be made or permit to be made any false entry in books, records or accounts.

      (c) Keep, cause to be kept or permit to be kept more than one set of books, records or accounts.

      2.  Any person who violates the provisions of subsection 1 is guilty of a gross misdemeanor.

      (Added to NRS by 2015, 2261)

      NRS 372A.380  Remedies of State are cumulative.  The remedies of the State provided for in NRS 372A.200 to 372A.380, inclusive, are cumulative, and no action taken by the Department or the Attorney General constitutes an election by the State to pursue any remedy to the exclusion of any other remedy for which provision is made in those sections.

      (Added to NRS by 2015, 2261)