NAC: CHAPTER 372A - TAX ON CONTROLLED SUBSTANCES

[Rev. 8/26/2026 9:31:49 AM]

CHAPTER 372A - TAX ON CONTROLLED SUBSTANCES

[NAC-372A Revised Date: 8-26]

GENERAL PROVISIONS

372A.010 Effect of criminal proceeding on collection of tax.

372A.020 Use of revenue stamps; applicability.

TAXES ON CANNABIS AND CANNABIS PRODUCTS

372A.100 Definitions.

372A.101 “Adult-use cannabis product” defined.

372A.1015 “Affiliate” defined.

372A.102 “Batch” defined.

372A.105 “Cannabis cultivation facility” defined.

372A.106 “Cannabis establishment” defined.

372A.107 “Cannabis product” defined.

372A.108 “Cannabis sales facility” defined.

372A.112 “Extraction” defined.

372A.115 “Fair market value” defined.

372A.116 “Independent cannabis consumption lounge” defined.

372A.118 “Lot” defined.

372A.122 “Pre-roll” defined.

372A.124 “Ready-to-consume cannabis product” defined.

372A.126 “Retail cannabis consumption lounge” defined.

372A.128 “Single-use cannabis product” defined.

372A.141 “Wholesale sale” defined.

372A.145 Records: Contents; form.

372A.147 Sales of cannabis and cannabis products to consumer by cannabis sales facility or cannabis consumption lounge: Subject to sales tax; permit or registration required; returns and payments.

372A.149 Circumstances under which cannabis or adult-use cannabis product obtained by retail cannabis consumption lounge is subject to excise tax.

372A.151 Circumstances under which cannabis or adult-use cannabis product purchased by independent cannabis consumption lounge is subject to excise tax.

372A.155 Fair market value at wholesale for categories of cannabis: Method for calculating; posting on website of Department; effective date.

372A.160 Payment of tax; monthly return; supporting documentation; submission of financial statement upon request of Department.

372A.165 Adult-use cannabis retail store that entered into contract with independent cannabis consumption lounge required to document sales on form submitted with return; maintenance and availability of contract.

GENERAL PROVISIONS

NAC 372A.010 Effect of criminal proceeding on collection of tax. (NRS 372A.050)

1. An action brought to recover any tax, fee or civil penalty imposed pursuant to chapter 372A of NRS is not barred by a prior acquittal of the defendant in a criminal action arising out of the same transaction or occurrence.

2. The Department may postpone an administrative hearing contesting the assessment of a tax, fee or civil penalty imposed pursuant to chapter 372A of NRS if a criminal prosecution of the defendant arising out of the same transaction or occurrence is pending.

3. In a civil proceeding brought pursuant to chapter 372A of NRS, the doctrine of collateral estoppel may bar the relitigation of an issue determined in a previous criminal proceeding in which the party sought to be estopped had a full and fair opportunity to litigate that issue.

(Added to NAC by Dep’t of Taxation, eff. 6-20-90)

NAC 372A.020 Use of revenue stamps; applicability. (NRS 360.090, 372A.050)

1. Each dealer in controlled substances who purchases revenue stamps from the Department pursuant to NRS 372A.090 shall affix the stamps to each package, packet or container of a controlled substance he or she sells.

2. This section does not apply to any sale that is subject to an excise tax imposed by NRS 372A.290.

(Added to NAC by Dep’t of Taxation, eff. 9-19-90; A by Tax Comm’n by R073-13, 6-23-2014; R108-20, 4-11-2022)

TAXES ON CANNABIS AND CANNABIS PRODUCTS

REVISER’S NOTE.

Pursuant to the provisions of NRS 0.024, former NAC 372A.104, 372A.109, 372A.110 and 372A.140 contained definitions that were deemed duplicative of those set forth in NRS 372A.015, 360.001, 372A.220 and 372A.250, respectively, and were removed from chapter 372A of NAC in accordance with ch. 56, Stats. 2009, which contains the following provision not included in NRS:

“Sec. 2. The Legislative Counsel shall, in preparing supplements to the Nevada Administrative Code, appropriately change, move or remove any words and terms in the Nevada Administrative Code in a manner that the Legislative Counsel determines necessary to ensure consistency with the provisions of section 1 of this act [NRS 0.024].”

NAC 372A.100 Definitions. (NRS 360.090, 372A.050, 372A.290, 678B.640) As used in NAC 372A.100 to 372A.165, inclusive, unless the context otherwise requires, the words and terms defined in NAC 372A.101 to 372A.141, inclusive, have the meanings ascribed to them in those sections.

(Added to NAC by Tax Comm’n by R073-13, eff. 6-23-2014; A by R108-20, 4-11-2022; R052-23, 12-19-2024)

NAC 372A.101 “Adult-use cannabis product” defined. (NRS 360.090, 372A.050, 678B.640) “Adult-use cannabis product” has the meaning ascribed to it in NRS 678A.055.

(Added to NAC by Tax Comm’n by R052-23, eff. 12-19-2024)

NAC 372A.1015 “Affiliate” defined. (NRS 360.090, 372A.050) “Affiliate” has the meaning ascribed to it in NRS 372A.290.

(Added to NAC by Tax Comm’n by R052-23, eff. 12-19-2024)

NAC 372A.102 “Batch” defined. (NRS 360.090, 372A.050, 678B.640) “Batch” means the usable flower and trim contained within one or more specific lots of cannabis grown by a cannabis cultivation facility from one or more seeds or cuttings of the same strain of cannabis and harvested on or before a specified final date of harvest.

(Added to NAC by Tax Comm’n by R108-20, eff. 4-11-2022)

NAC 372A.105 “Cannabis cultivation facility” defined. (NRS 360.090, 372A.050, 678B.640) “Cannabis cultivation facility” has the meaning ascribed to it in NRS 372A.210.

(Added to NAC by Tax Comm’n by R108-20, eff. 4-11-2022)

NAC 372A.106 “Cannabis establishment” defined. (NRS 360.090, 372A.050, 678B.640) “Cannabis establishment” has the meaning ascribed to it in NRS 678A.095.

(Added to NAC by Tax Comm’n by R108-20, eff. 4-11-2022)

NAC 372A.107 “Cannabis product” defined. (NRS 360.090, 372A.050, 678B.640) “Cannabis product” has the meaning ascribed to it in NRS 372A.290.

(Added to NAC by Tax Comm’n by R108-20, eff. 4-11-2022)

NAC 372A.108 “Cannabis sales facility” defined. (NRS 360.090, 372A.050) “Cannabis sales facility” has the meaning ascribed to it in NRS 678A.130.

(Added to NAC by Tax Comm’n by R052-23, eff. 12-19-2024)

NAC 372A.112 “Extraction” defined. (NRS 360.090, 372A.050, 678B.640) “Extraction” has the meaning ascribed to it in NRS 453.0825.

(Added to NAC by Tax Comm’n by R108-20, eff. 4-11-2022)

NAC 372A.115 “Fair market value” defined. (NRS 360.090, 372A.050, 678B.640) “Fair market value” means the value established by the Department based on the price that a buyer would pay to a seller in an arm’s length transaction for cannabis in the wholesale market.

(Added to NAC by Tax Comm’n by R108-20, eff. 4-11-2022)

NAC 372A.116 “Independent cannabis consumption lounge” defined. (NRS 360.090, 372A.050) “Independent cannabis consumption lounge” has the meaning ascribed to it in NRS 678A.157.

(Added to NAC by Tax Comm’n by R052-23, eff. 12-19-2024)

NAC 372A.118 “Lot” defined. (NRS 360.090, 372A.050, 678B.640) “Lot” means:

1. The flowers from one or more cannabis plants of the same batch, in a quantity that weighs 5 pounds or less;

2. The leaves or other plant matter from one or more cannabis plants of the same batch, other than full female flowers, in a quantity that weighs 15 pounds or less; or

3. The wet leaves or other plant matter from one or more cannabis plants of the same batch used only for extraction, in a quantity that weighs 125 pounds or less within 2 hours of harvest.

(Added to NAC by Tax Comm’n by R108-20, eff. 4-11-2022)

NAC 372A.122 “Pre-roll” defined. (NRS 360.090, 372A.050, 678B.640) “Pre-roll” means an individual cannabis cigarette or joint.

(Added to NAC by Tax Comm’n by R052-23, eff. 12-19-2024)

NAC 372A.124 “Ready-to-consume cannabis product” defined. (NRS 360.090, 372.050) “Ready-to-consume cannabis product” has the meaning ascribed to it in NRS 678A.227.

(Added to NAC by Tax Comm’n by R052-23, eff. 12-19-2024)

NAC 372A.126 “Retail cannabis consumption lounge” defined. (NRS 360.090, 372A.050) “Retail cannabis consumption lounge” has the meaning ascribed to it in NRS 678A.237.

(Added to NAC by Tax Comm’n by R052-23, eff. 12-19-2024)

NAC 372A.128 “Single-use cannabis product” defined. (NRS 360.090, 372A.050) “Single-use cannabis product” has the meaning ascribed to it in NRS 678A.238.

(Added to NAC by Tax Comm’n by R052-23, eff. 12-19-2024)

NAC 372A.141 “Wholesale sale” defined. (NRS 360.090, 372A.050, 678B.640) “Wholesale sale” has the meaning ascribed to it in NRS 372A.290.

(Added to NAC by Tax Comm’n by R052-23, eff. 12-19-2024)

NAC 372A.145 Records: Contents; form. (NRS 360.090, 372A.050, 372A.270) The records required by paragraph (a) of subsection 1 of NRS 372A.270:

1. May include receipts, invoices and other pertinent papers; and

2. Must be kept in such form as required by the Department.

(Added to NAC by Tax Comm’n by R052-23, eff. 12-19-2024)

NAC 372A.147 Sales of cannabis and cannabis products to consumer by cannabis sales facility or cannabis consumption lounge: Subject to sales tax; permit or registration required; returns and payments. (NRS 360.090, 372A.050) Sales of cannabis and cannabis products to a consumer by a cannabis sales facility or cannabis consumption lounge are subject to sales tax. Each cannabis sales facility and cannabis consumption lounge shall obtain a permit pursuant to NRS 360.5971 or register pursuant to NRS 360B.200. Returns must be filed and payments must be remitted in accordance with the provisions of chapters 372 and 374 of NRS.

(Added to NAC by Tax Comm’n by R052-23, eff. 12-19-2024)

NAC 372A.149 Circumstances under which cannabis or adult-use cannabis product obtained by retail cannabis consumption lounge is subject to excise tax. (NRS 360.090, 372A.050) Any cannabis or adult-use cannabis product obtained by a retail cannabis consumption lounge from the adult-use cannabis retail store to which the retail cannabis consumption lounge is attached or immediately adjacent is not subject to the excise tax on cannabis and must not be included in the measure of the tax on a return required by NAC 372A.160 until the retail cannabis consumption lounge:

1. For a single-use cannabis product, sells the single-use cannabis product to a customer of the lounge; or

2. Uses the cannabis or adult-use cannabis product to prepare a ready-to-consume cannabis product and sells the ready-to-consume cannabis product to a customer of the lounge.

(Added to NAC by Tax Comm’n by R052-23, eff. 12-19-2024)

NAC 372A.151 Circumstances under which cannabis or adult-use cannabis product purchased by independent cannabis consumption lounge is subject to excise tax. (NRS 360.090, 372A.050) Any cannabis or adult-use cannabis product purchased by an independent cannabis consumption lounge from an adult-use cannabis retail store with which the independent cannabis consumption lounge has entered into a contract pursuant to NRS 678D.475 is not subject to the excise tax on cannabis and must not be included in the measure of the tax on a return required by NAC 372A.160 until the independent cannabis consumption lounge:

1. For a single-use cannabis product, sells the single-use cannabis product to a customer of the lounge; or

2. Uses the cannabis or adult-use cannabis product to prepare a ready-to-consume cannabis product and sells the ready-to-consume cannabis product to a customer of the lounge.

(Added to NAC by Tax Comm’n by R052-23, eff. 12-19-2024)

NAC 372A.155 Fair market value at wholesale for categories of cannabis: Method for calculating; posting on website of Department; effective date. (NRS 360.090, 372A.050, 678B.640)

1. During the month immediately following the end of each calendar quarter, but not later than 30 days after the end of the calendar quarter, the Department will:

(a) Calculate the fair market value at wholesale of each category of cannabis described in subsection 3 using the methodology described in this section; and

(b) Post on the Internet website of the Department the fair market value at wholesale of each category of cannabis described in subsection 3.

2. The fair market value at wholesale of each category of cannabis becomes effective on the first day of the month immediately following the month in which the fair market value at wholesale is posted on the Internet website of the Department pursuant to paragraph (b) of subsection 1.

3. The fair market value at wholesale of:

(a) Cannabis bud must be calculated on the basis of the total weight of all cannabis bud that is sold, excluding the inadvertent inclusion of an inconsequential amount of cannabis bud in a sale of cannabis trim.

(b) Cannabis trim must be calculated on the basis of the total weight of all cannabis trim that is sold, including the total weight of an inconsequential amount of cannabis bud which is inadvertently included.

(d) Whole wet cannabis plants must be calculated on the basis of the total weight of the entire whole wet cannabis plant. A cannabis cultivation facility shall maintain records of the time each batch containing whole wet cannabis plants is harvested and weighed which contain the weight of each plant, are in writing and are created contemporaneously with the harvesting and weighing. To determine the total weight of the whole wet cannabis plant:

(1) The plant must not undergo any further processing, including, without limitation, drying the plant and subsequently selling separately the cannabis bud and cannabis trim from the plant, before being weighed; and

(2) The plant must be weighed within 2 hours after the harvesting of the batch containing the plant and without any further processing of the plant, including, without limitation, increasing the ambient temperature of the room in which the plant is held or drying, curing or trimming the plant. If the whole wet cannabis plant is not weighed within 2 hours after the harvest of the batch containing the plant or is subjected to further processing, the fair market value at wholesale of the plant must not be calculated pursuant to this paragraph and must be calculated pursuant to paragraph (a) or (b).

(e) Pre-rolls must be calculated on the basis of the total weight of all cannabis that is contained in a pre-roll that is assembled and sold by a cannabis cultivation facility.

(f) Any other category of cannabis must be determined by the Department on a case-by-case basis.

4. To calculate the fair market value at wholesale of a category of cannabis described in subsection 3, the Department will:

(a) Identify each wholesale sale of cannabis in the category between a cannabis cultivation facility and another cannabis establishment that is not an affiliate of the cannabis cultivation facility that occurred in the immediately preceding calendar quarter, as recorded by computer software used by the Cannabis Compliance Board for the seed-to-sale tracking of cannabis. If the Department determines that an insufficient number of such sales occurred in the immediately preceding calendar quarter to determine a median sales price that is statistically valid, the Department may additionally identify wholesale sales of cannabis in the category between a cannabis cultivation facility and another cannabis establishment that is not an affiliate of the cannabis cultivation facility that occurred in each immediately preceding calendar quarter until a sufficient number of such sales are identified to draw a statistically valid conclusion.

(b) Standardize the sales prices for all wholesale sales identified pursuant to paragraph (a) by adjusting the actual sales price for each wholesale sale to an amount that reflects the sales price per pound or per unit, as applicable. If subsection 3 requires the fair market value at wholesale of the category of cannabis to be calculated on the basis of:

(1) Total weight, the sales prices must be adjusted to amounts that reflect sales prices per pound.

(2) Total number sold, the sales prices must be adjusted to amounts that reflect the sales prices per unit.

(1) That was recorded as an internal transfer, sample, display, promotion, tester or trial; or

(2) For which the sales price, after being standardized pursuant to paragraph (b), was less than 15 percent or more than 500 percent of the fair market value at wholesale of the category of cannabis at the time in which the sale was made.

(d) Determine the median of all the standardized sales prices determined pursuant to paragraph (b), but not including any wholesale sale identified pursuant to paragraph (c).

5. The fair market value at wholesale of a category of cannabis calculated by the Department pursuant to subsection 1 must be equal to the median standardized price determined pursuant to paragraph (d) of subsection 4.

6. As used in this section, “calendar quarter” means a period of 3 consecutive months commencing on the first day of March, June, September or December in any year.

(Added to NAC by Tax Comm’n by R108-20, eff. 4-11-2022; A by R052-23, 12-19-2024)

NAC 372A.160 Payment of tax; monthly return; supporting documentation; submission of financial statement upon request of Department. (NRS 360.090, 372A.050, 372A.290)

1. Each taxpayer shall, on or before the last day of the month immediately following each month for which the taxpayer is subject to the imposition of the excise tax on cannabis, file with the Department a return on a form prescribed by the Department and remit to the Department any tax due for the month covered by the return. Each taxpayer shall file a return even if the taxpayer has no liability for the tax.

2. Each taxpayer shall keep all supporting documentation for verification that the applicable excise tax on cannabis was properly reported and paid.

3. The Department may require a cannabis establishment to submit a financial statement as determined to be necessary by the Department to ensure the collection of any taxes which may be owed by the cannabis establishment.

(Added to NAC by Tax Comm’n by R073-13, eff. 6-23-2014; A by R108-20, 4-11-2022; R052-23, 12-19-2024)

NAC 372A.165 Adult-use cannabis retail store that entered into contract with independent cannabis consumption lounge required to document sales on form submitted with return; maintenance and availability of contract. (NRS 360.090, 372A.050)

1. Each adult-use cannabis retail store that has entered into a contract with an independent cannabis consumption lounge pursuant to NRS 678D.475 shall:

(a) Document on a form prescribed by the Department each sale of cannabis or an adult-use cannabis product by the adult-use cannabis retail store to the independent cannabis consumption lounge; and

(b) Submit the form described in paragraph (a) to the Department with each return required by NAC 372A.160.

2. Each adult-use cannabis retail store and independent cannabis consumption lounge shall maintain a copy of any contract entered into pursuant to NRS 678D.475 and make the copy available to the Department upon request.

(Added to NAC by Tax Comm’n by R052-23, eff. 12-19-2024)