Nevada Taxation Department prepares to license recreational pot purveyors this week

Nevada Department of Taxation officials say that, effective July 1, medical marijuana establishments will be able to sell recreational pot if they have more in stock than they need for cardholders.

But according to spokesman Stephanie Klapstein, auditors will be there making sure they don’t load up on excess marijuana before July 1 when recreational use becomes legal in Nevada.

She said those auditors are already closely monitoring how much marijuana each dispensary has on hand at any one time.

She said more than 100 letters conditionally approving medical marijuana establishments to join the recreational business have been sent to cultivators, dispensaries and producers of edible products statewide. Those businesses, however, won’t be licensed until final approval this week. She said some 80 of those businesses are essentially ready to go July 1.

The issue was raised because of District Judge James Wilson’s order last week barring issuance of recreational marijuana distributor licenses to anyone other than licensed alcohol and liquor distributors for the first 18 months of legal pot sales and use. That restriction was contained in the voter approved measure that legalized recreational marijuana in Nevada.

Taxation Director Deonne Contine made the comments following a hearing at which the Tax Commission approved emergency regulations implementing some controls over the packaging and labeling of marijuana products. She told the commission the emergency regulations have absolutely nothing to do with the licensing of marijuana distributors. She said the emergency regulations are designed to implement control that legislators wanted put on the labeling, packaging, advertising and serving size of those products. They must be in child proof containers and cannot appear to be candy such as gummy bears that might be attractive to children.

Will Adler, a lobbyist for the marijuana industry, said they are ready to comply with the packaging, labeling, warning and other requirements on marijuana products.