The Nevada Tax Commission has upheld the previous decision by the Tax Department that there are not enough liquor distributors in the state to serve the growing retail cannabis market, the Las Vegas Review-Journal reports. However, the commission’s decision is not final as the distributors have appealed the denial of a previous injunction request by the Nevada District Court. That case will be heard by the state Supreme Court next month.
Kevin Benson, attorney for the alcohol distributors, argued that the Tax Department did not give the cadre due process to present their case.
“There was no opportunity to question anything being presented in the meeting,” Benson said in the report. “There was no way to get to the bottom of any of those things.”
Under the voter-approved recreational cannabis law, liquor distributors were given a monopoly on cannabis delivery but, shortly after the program launch, it was clear that there weren’t enough companies – or interest – to serve the industry. Presently, there are just six licensed cannabis distributors in the state and 29 licensed transport vehicles but it is not known how many of those vehicles are operational.
The Tax Department, who is currently overseeing the cannabis program, has argued along with cannabis retailers that the distribution issues have led to lost sales and a drop in product varieties.