Cannabis companies operating in Nye County will now pay a full percent more in sales tax while those looking to break into the industry here will see higher initial licensing costs following an adjustment of the county’s pot code.
Nye County Bill 2023-13 had been set to raise initial licensing fees by 500%. Renewal fees were set to double and the tax assessed on gross sales was proposed to see a bump from 2% to 3%.
These increases were intended to bring the county’s cannabis fee structure more in line with what is seen in other jurisdictions throughout Nevada.
But commissioners hesitated with the hefty increases, saying they did not want to price cannabis companies out of business. The planning department reworked projections and ultimately slashed the proposed fees in half.
When the item was reopened later that afternoon, the renewal fees for all types of cannabis establishments were then proposed to stay the same, while those for initial licensing were two and a half times higher.
These figures seemed to be much more palatable and commissioner Debra Strickland motioned to approve the bill as amended, with a second from commissioner Frank Carbone. The motion passed with all in favor.
The bill goes into effect on Monday, Dec. 11.
Under the new fee structure, the initial license application for a cannabis dispensary or a cannabis consumption lounge is $37,500. Renewal of said licenses remains at $7,500 per year.
For cannabis cultivation and production facilities, the initial license application fee is now $12,500. The renewal fee of $2,500 stays the same.
Initial licensing for an independent cannabis testing facility or a cannabis distributor has been raised to $6,250, while the renewal remains at $1,250.
Other changes
Other amendments were included in the code as well.
“Annual license renewals shall be submitted no later than the first of June of each year,” the code now reads. “Any annual license renewal submitted after June 1 shall be deemed a late submittal and shall be assessed a late fee of 25% of the annual renewal fee. Any license not submitted for renewal by June 30 shall automatically expire.”
The bill also modified the sales tax payment schedule to allow for quarterly payments in January, April, July and October of each year, rather than monthly payments, alleviating staff burden for both the county and cannabis companies.
Finally, with pot companies regularly changing hands, the bill addresses the transferability of licenses by adding a provision to ensure all new owners are treated as new licensees.
“All transfers of licenses to a new owner shall require the submittal of a new license application, which shall be deemed an ‘initial’ application and shall require the payment of initial application fees,” the bill reads.
Contact reporter Robin Hebrock at rhebrock@pvtimes.com