Nevada’s fledgling recreational marijuana program finally has some money to get off the ground.
The state’s Interim Finance Committee on Thursday approved a seed loan of approximately $871,000 for the startup of the new program under the Department of Taxation.
“We just want to make sure that we are meeting our responsibility and getting this all done by the deadline,” said Stephanie Klapstein, spokeswoman for the department.
The program will be regulating and taxing the recreational marijuana industry since Nevadans voted in November to legalize the substance as of Jan. 1.
The loan will be pulled form the Interim Finance Contingency Account and will go toward costs incurred between Feb. 1 and the end of the current fiscal year, in June. Thereafter, Gov. Brian Sandoval has proposed a $1.9 million annual budget for the program during Fiscal Year 2018 and the same amount for the following fiscal year, according to Mari St. Martin, spokeswoman for the Governor’s Office.
The committee approved a smaller amount than initially requested, about $887,000, because of a reduction in rent costs since the Department of Taxation wrote the original proposal.
The department’s first order with the loan will be to hire four positions to begin in February, including a deputy director, chief investigator, tax examiner and administrative assistant. The deputy director will be based out of Carson City, and the others will be based out of Las Vegas. Salaries will total slightly more than $129,000 during the five-month duration of the loan and travel expenses will cost about $8,000.
The bulk of the loan will be spent on software programming, about $596,000, and other operational expenses including communication services, supplies and rent.
At the beginning of the next fiscal year, an additional dozen employees will be hired to create an enforcement task force within the program.
Until the Department has fully completed its orders to fill in the holes in the current legislation legalizing recreational marijuana, no legal transactions can take place with recreational marijuana.
The Department is hoping by July to establish the following:
- Procedures for the issuance, renewal, suspension and revocation of licenses to marijuana retailers, cultivators, product manufacturing facilities, testing facilities and distributors
- Qualifications for licensure, security, packaging, labeling and testing of marijuana
- Procedures for oversight and enforcement of marijuana businesses and licensees (including record keeping, signage, marketing, display, advertising, etc.)
- Procedures for collection of taxes, fees and penalties.
The Department of Taxation has until Dec. 31, 2017 to write the regulations for the recreational marijuana industry in Nevada.
The expectation is that the department will pay back the loan next year after revenue starts flowing in from the 15 percent wholesale tax on recreational marijuana and licensing fees paid by those distributing it. The tax could bring in as much as $12.7 million in the first fiscal year, in addition to about $4.4 million from fees, according to projections from the state finance office. If Sandoval’s proposed 10 percent sales tax is tacked on, he expects an additional $29.5 million for the state during the same period.
Sandoval expressed earlier this month that he does not expect payback of the loan to be an issue.
more recommended stories
- Special Weather Statement issued August 23 at 2:11AM EDT by NWS
…A developing strong thunderstorm in northern.
- Report: FDA Asking Patients To Provide CBD Feedback
Finally, the FDA is asking people.
- Seniors Are the Fastest Growing Group of Marijuana Users
By Joseph Misulonas | Aug 14,.
- Here’s What A Trump Presidency Means For Cannabis Laws
How will Donald Trump react to.
- Philippine Police Kill 32 In ‘Shock And Awe’ Drug Raids
Philippine police have killed 32 people.
- 10 surprising spaces in California being converted into cannabis businesses
Published: Aug 15, 2017, 3:40 pm.
- Massachusetts Supreme Court Becomes First State Court to Find Employers Must Accommodate Use of Medical Marijuana
As the number of states legalizing.
- A Plea From Texas to Willie Nelson: Your Influence Is Needed In Fight To Legalize Marijuana
By Neal Pollack, The Cannabist Staff.
- Missouri Sues Three Big Pharma Companies For “Campaign Of Fraud And Deception”
Published: Jun 23, 2017, 3:22 pm.
- Neil deGrasse Tyson on Marijuana: “There’s No Reason For It to Have Ever Been Made Illegal”
By Sydney Robinson – August 8, 2017 Share.