Young cannabis plant growing up in an indoor grow warehouse.

Rory Savatgy

Nevada Tax Department Begins Legalization Implementation Process

Nevada’s Department of Taxation is already developing regulations for the implementation of Question 2, more than a year before the law requires it to be rolled out, Deonne Contine, the department’s executive director, announced in a press release. The agency plans to hold a public workshop “very early in 2017” to adopt temporary regulations and begin issuing licenses.

“With the medical marijuana program in place in Nevada since 2014, we have expertise in the state on how to establish and carry out the regulations,” Contine said in the release. “We’ve also consulted with the industry in Nevada and looked closely at the regulation model in Colorado. We have a good foundation to do this right.”

With temporary regulations in place, the department could begin issuing licenses — which under the law will be available first to dispensaries currently operating under the state’s medical cannabis program. While those licenses are being granted, the department could start developing permanent regulations, which would need to be reviewed by the Legislative Counsel Bureau before they are adopted. Currently, the agency is working with Republican Gov. Brian Sandoval on an executive order to create a task force to provide guidance on the possible issues related to the initiative’s passage.

The law takes effect on Jan. 1, allowing the possession of 1 ounce of cannabis or an eighth of an ounce of concentrates by adults 21 and older. The measure specifies that rules and regulations governing the program must be adopted by Jan. 1 2018.

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