Read the full stored bill text
- 83rd Session (2025)
Senate Bill No. 41–Committee on
Revenue and Economic Development
CHAPTER..........
AN ACT relating to taxation; requiring a cannabis tax permit issued
by the Department of Taxation to engage in or conduct the
business of selling cannabis or cannabis products; providing
for the issuance, revocation and suspension of a cannabis tax
permit; requiring the suspension of a cannabis license under
certain circumstances; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
Existing law imposes an excise tax on the wholesale and retail sale of cannabis
by certain licensed cannabis establishments. (NRS 372A.290) Existing law also
requires any person engaged in the business of selling at retail tangible personal
property, including, without limitation, adult-use cannabis retail stores and cannabis
consumption lounges, to register or file an application for a permit for each place of
business from the Department of Taxation , which is referred to as a sales tax
permit. (NRS 360.5971)
Sections 3-5 of this bill define certain terms relating to the taxation of the sale
of cannabis. Section 6 of this bill: (1) requires that, in addition to any other permit
required by law, including, without limitation, a sales tax permit , every person who
desires to engage in the sale of cannabis or cannabis products must, before
obtaining a license from the Cannabis Compliance Board, apply for and obtain a
cannabis tax permit issued by the Department for each place of business; and (2)
establishes requirements for the application. Section 15 of this bill make this
requirement applicable beginning on January 1, 2027, and section 14 of this bill
establishes the manner in which persons engaging in the business of selling
cannabis or cannabis products before that date are required to comply with the
requirement to obtain a cannabis tax permit before that date.
Section 7 of this bill requires the Department , not later than 15 days after
receiving an application, to grant and issue to an applic ant a separate cannabis tax
permit for each place of business and provide the applicant with a full written
explanation of the liability for the collection and payment of any applicable taxes.
Section 7 also provides that a cannabis tax permit is not assig nable and is only
valid for the transaction of business at the place of business designated in the
permit.
Section 8 of this bill establishes procedures for the Department to revoke or
suspend a cannabis tax permit for failure to comply with certain requ irements
relating to excise taxes imposed on the sale of cannabis and cannabis products.
Specifically, section 8 : (1) requires the Department to provide to the holder of a
cannabis tax permit certain information concerning any alleged noncompliance, and
an opportunity to cure such noncompliance, before issuing a notice of a hearing for
the revocation or suspension of the cannabis tax permit; (2) authorizes the
Department to, after notice and a hearing, revoke or suspend a cannabis tax permit
for such noncom pliance; (3) provides for an appeal to the Nevada Tax
Commission; and (4) requires the Department to send a copy of a final decision to
revoke or suspend a permit to the Board.
Section 9 of this bill requires an aggrieved person to pay the amount of the tax
liability, or to enter into an agreement to pay the liability, before the person may
seek judicial review of a final decision of the Commission.
– 2 –
- 83rd Session (2025)
Section 9.5 of this bill establishes provisions for a holder of a license issued by
the Board who has requested to transfer the license to request and receive from the
Department a certificate of the amount of any delinquent excise taxes, and the
penalties and interest relating thereto.
Sections 10-12 of this bill make conforming changes to: (1) indicate the proper
placement of sections 2-9.5 in the Nevada Revised Statutes; and (2) clarify that
certain provisions of existing law apply to sections 2-9.5.
Existing law prohibits a person from engaging in business as a cannabis
establishment, which includes the sale of cannabis or cannabis products, unless the
person holds a license from the Board. (NRS 678B.210, 678B.250, 678B.530)
Section 13 of this bill requires the Board, upon receipt of a c opy of a final decision
to revoke or suspend a cannabis tax permit or a sales and use tax permit, to suspend
the corresponding cannabis license of the cannabis establishment until the excise
tax liability is paid in full.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 372A of NRS is hereby amended by
adding thereto the provisions set forth as sections 2 to 9.5, inclusive,
of this act.
Sec. 2. As used in sections 2 to 9.5, inclusive, of this act,
unless the context otherwise requires, the words and terms defined
in sections 2.5 to 5, inclusive, of this act have the meanings
ascribed to them in those sections.
Sec. 2.5. “Board” means the Cannabis Compliance Board.
Sec. 3. “Business” includes any activity engaged in by any
person or caused to be engaged in by any person with the object of
gain, benefit or advantage, either direct or indirect.
Sec. 4. “Person” includes any individual, firm,
copartnership, joint venture, association, social club, fraternal
organization, corporation, estate, trust, business trust, receiver,
trustee, syndicate, cooperative, assignee or any other group or
combination acting as a unit, but does not include the United
States, this State or any agency thereof, or any city, county, district
or other political subdivision of this State.
Sec. 5. “Seller” includes every person who engages in the
business of selling cannabis or cannabis products. As used in this
section:
1. “Cannabis product” has the meaning ascribed to it in
NRS 678A.120.
2. “Selling” has the meaning ascribed to “sale” in
NRS 372A.040.
– 3 –
- 83rd Session (2025)
Sec. 6. 1. In addition to any other permit required by law,
before the issuance of a license by the Board pursuant to chapter
678B of NRS , every person desiring to engage in or conduct
business as a seller within this State must , for each place of
business:
(a) Register with, or obtain a permit from, the Department
pursuant to NRS 360.597 to 360.5975, inclusive; and
(b) Obtain a cannabis tax permit from the Department issued
pursuant to section 7 of this act.
2. Every application for a cannabis tax permit must:
(a) Be made upon a form prescribed by the Department.
(b) Set forth the name under which the applicant transacts or
intends to transact business and the location of the applicant’s
place or places of business.
(c) Set forth any other information which the Department may
require.
(d) Be signed by:
(1) The owner if he or she is a natural person;
(2) A member or partner if the seller is an association or
partnership; or
(3) An executive officer or some perso n specifically
authorized to sign the application if the seller is a corporation.
Written evidence of the signer’s authority must be attached to the
application.
Sec. 7. 1. Except as otherwise provided in NRS 360.205
and section 8 of this act, after compliance with section 6 of this act
by an applicant for a cannabis tax permit, the Department shall ,
not later than 15 days after receipt of the application:
(a) Grant and issue to the applicant a separate cannabis tax
permit for each place of business within the county.
(b) Provide the applicant with a full written explanation of the
liability of the applicant for the collection and payment of any
applicable taxes imposed by this title.
2. A cannabis tax permit is not assignable and is valid only
for the person in whose name it is issued and for the transaction
of business at the place designated therein. A cannabis tax permit
must at all times be conspicuously displayed at the place for which
it is issued.
Sec. 8. 1. Whenever any person fails to comply with any
applicable provision of this title relating to the excise taxes
imposed by this title or regulation of the Department relating to
the excise taxes imposed by this title, the Department, after
complying with the requirements of subsection 2 and providing a
– 4 –
- 83rd Session (2025)
hearing of which the person was given prior notice of at least 10
days in writing specifying the time and place of the hearing and
requiring the person to show cause as to why his or her cannabis
tax permit should not be revoked or suspended, may revoke or
suspend any one or more of the permits held by the person. A
hearing required pursuant to this subsection must be conducted
not later than 3 0 days after the person was given notice of the
hearing, except that for good cause shown by the holder of the
permit, the Department may continue the hearing for not more
than 30 additional days.
2. Before giving notice of a hearing pursuant to subsecti on 1,
the Department must send to the holder of the permit information
clearly explaining the nature of the alleged noncompliance, the
amount of any delinquent excise tax, and any penalty and interest
relating thereto, and contact information that the hold er of the
permit may use to address questions concerning the alleged
noncompliance. Except as otherwise provided in this subsection, if
not later than 30 days after such information is sent to the holder
of the permit, the holder of the permit pays the ful l amount of any
delinquent excise tax, and penalty and interest relating thereto, or
enters into a written agreement with the Department to pay such
amount in installments over a period specified in the agreement,
the Department must not give notice of a h earing pursuant to
subsection 1. If the holder of the permit and the Department have
approved a written agreement to pay the amount of any delinquent
excise tax, and any penalty and interest relating thereto, in
installments over a specified period of time , but the written
agreement must be approved by the Nevada Tax Commission
before becoming effective, the Department must present the
written agreement to the Commission at its next public meeting
and, if the Commission approves the written agreement, the
Department must not give notice of a hearing pursuant to
subsection 1. If the alleged noncompliance of the holder of the
permit is a failure to comply with a written agreement with the
Department to pay any delinquent excise tax, and penalty and
interest relating thereto, the Department must send to the holder
of the permit the information required by this subsection before
giving notice of a hearing pursuant to subsection 1 and the
Department may give notice of such a hearing if the holder of the
permit does not cure the deficiency within 30 days after receiving
information concerning the alleged noncompliance.
3. The Department shall , not later than 30 days after a
hearing conducted pursuant to subsection 1, serve any decision
– 5 –
- 83rd Session (2025)
regarding the suspension or revocation of a cannabis tax permit
on the person in writing. If the holder of the permit does not file
an appeal with the Nevada Tax Commission in accordance with
subsection 6, the decision of the Department is final and not
subject to judicial review.
4. The Department shall serve the decision required pursuant
to subsection 3 by personal service or by certified mail, or, if the
person provided consent to receiving electronic mail, in the
manner prescribed for service of notice of a deficiency
determination.
5. The Department shall not issue a new cannabis tax permit
to any person who has previously had a permit revoked, unless the
Department is satisfied that the person will comply with the
provisions of this title relating to the excise taxes imposed by this
title and the associated regulations of the Department.
6. Within 30 days after the date of service of a decision
pursuant to subsection 3, a person who is aggrieved by the
decision may file an appeal with the Nevada Tax Commission. The
Commission shall consider the appeal at its next available public
meeting. A decision of the Commission on appeal is a final
decision for the purposes of judicial review pursuant to chapter
233B of NRS. Not later than 30 days after the public meeting at
which the Commission considers the appeal, the Commission must
issue a final decision in writing and serve the final written
decision on the parties either personally or by certified mail.
7. If the final decision of the Department pursuant to
subsection 3 or the Nevada Tax Commission pursuant to
subsection 6, as applicable, supports revocation or suspension of
the cannabis tax permit, the Department shall , not later than 5
days after issuance of the final decision, serve by certified mail or
electronic means a copy of the final decision to the Board.
8. The Department shall, within 5 days after a person who is
subject to a final decision pays the liability in full or the liability is
transferred and paid in full with the proceeds from the transfer,
reinstate the cannabis tax permit and provide the person a letter
stating that the person has satisfied the arrearage and the
cannabis tax permit has been reinstated. The Department shall
also send a copy of that letter to the Board by certified mail or
electronic means.
9. A seller who has received a notice of hearing pursuant to
subsection 2 may continue to operate until such time as a copy of
a final decision is sent to the Board pursuant to subsection 7.
– 6 –
- 83rd Session (2025)
Sec. 9. 1. Before a person may seek judicial review
pursuant to NRS 233B.130 from a final decision of the Nevada
Tax Commission pursuant to this chapter, the person must:
(a) Pay the amount of any outstanding liability as set forth in
the final decision; or
(b) Enter into a written agreement with the Department
establishing a later date by which he or she must pay the amount
of the outstanding tax liability.
2. If a court determines that the amount of any outstanding
tax liability set forth in the final decision should be reduced or that
the person does not owe any taxes, the Department shall credit or
refund any amount paid by the person that exceeds the amount
owed, with interest determined in accordance with NRS 360.2935.
Sec. 9.5. If the holder of a license issued by the Board
submits to the Board pursuant to NRS 678B.380 a request for a
transfer of the license:
1. The holder of the license shall request in writing from the
Department a certificate of the amount of any delinquent excise
taxes, and any interest and penalties relating thereto, owed to the
Department by the holder of the license; and
2. The Department shall issue to the holder of the license a
certificate of the amount due:
(a) Not later than 30 days after receivin g the written request
pursuant to subsection 1; or
(b) Not later than 30 days after the date the records of the
holder of the license are made available for audit by the
Department,
whichever period expires later, but in no event later than 60
days after the Department receives the request from the holder of
the license.
Sec. 10. NRS 372A.200 is hereby amended to read as follows:
372A.200 As used in NRS 372A.200 to 372A.380, inclusive,
and sections 2 to 9.5, inclusive, of this act, unless the context
otherwise requires, the words and terms defined in NRS 372A.205
to 372A.250, inclusive, have the meanings ascribed to them in those
sections.
Sec. 11. NRS 372A.260 is hereby amended to read as follows:
372A.260 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 cannabis to the extent that those provisions do not conflict
– 7 –
- 83rd Session (2025)
with the provisions of NRS 372A.200 to 372A.380, inclusive [.] and
sections 2 to 9.5, inclusive, of this act.
Sec. 12. NRS 372A.380 is hereby amended to read as follows:
372A.380 The remedies of the State provided for in NRS
372A.200 to 372A.380, inclusive, and sections 2 to 9.5, inclusive,
of this act 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.
Sec. 13. Chapter 678B of NRS is hereby amended by adding
thereto a new section to read as follows:
1. If the Board receives a copy of a final decision issued
pursuant to section 8 of this act or NRS 360.5975 that provides for
the revocation or suspension of a cannabis tax permit or a sales
and use tax permit , as applicable, issued to a person who is the
holder of a license, the Board shall deem the applicable license
issued to that person to be suspended on the day on which the
final decision is served on the Board.
2. The Board sh all reinstate a license that has been
suspended pursuant to subsection 1 if the Board receives a letter
from the Department of Taxation stating that the person whose
license was suspended has paid the liability in full or the license
was transferred and th e liability has been paid in full with the
proceeds from the transfer.
3. As used in this section, “sales and use tax permit” means a
registration with the Department of Taxation or permit issued by
the Department of Taxation pursuant to NRS 360.597 to 360.5975,
inclusive.
Sec. 14. 1. Any person engaging in or conducting business
as a seller on or after the passage and approval of this act and before
January 1, 2027, shall:
(a) Register with, or obtain a permit from, the Department
pursuant to NRS 360.597 to 360.5975, inclusive; and
(b) Not later than September 1, 2026 or, if the person begins to
engage in or conduct business as a seller after September 1, 2026
and before December 1, 2026, not later than 30 days after be coming
a seller, submit an application to the Department for a cannabis tax
permit pursuant to section 6 of this act.
2. Not later than December 31, 2026, the Department shall
issue a cannabis tax permit to a person who submits an application
pursuant to paragraph (b) of subsection 1 and who satisfies the
requirements for a cannabis tax permit.
– 8 –
- 83rd Session (2025)
3. If, before January 1, 2027, a person engaging in or
conducting business as a seller is not in compliance with applicable
provisions of title 32 of NRS relatin g to the applicable excise taxes
imposed by title 32 of NRS or a regulation of the Department
relating to the applicable excise taxes imposed by title 32 of NRS,
the Department:
(a) Must not issue a cannabis tax permit to the person unless the
person has cured any noncompliance; and
(b) If the person has not cured any noncompliance before
January 1, 2027, must issue a notice to the Board that the licensee
has not complied with the requirements for a cannabis tax permit.
4. If the Board receives a notice issued by the Department
pursuant to subsection 3, the Board shall deem the applicable license
issued to that person by the Board to be suspended on the day on
which the Department issues the notice. The Board shall reinstate a
license that has been suspe nded pursuant to this subsection if the
Board receives a letter from the Department stating that the
Department has issued the person a cannabis tax permit after
the person whose license was suspended has cured any deficiency or
the license was transferre d and the liability has been paid in full
with the proceeds from the transfer.
5. As used in this section:
(a) “Board” means the Cannabis Compliance Board.
(b) “Cannabis tax permit” means a permit issued by the
Department pursuant to sections 2 to 9.5, inclusive, of this act.
(c) “Department” means the Department of Taxation.
(d) “Seller” has the meaning ascribed to it in section 5 of this
act.
Sec. 15. 1. This section and section 14 of this act become
effective upon passage and approval.
2. Sections 1 to 13, inclusive, of this act become effective:
(a) Upon passage and approval for the purpose of adopting
regulations and performing preparatory administrative tasks; and
(b) On January 1, 2027, for all other purposes.
20 ~~~~~ 25