Nevada Administrative Code Chapter 372A - Tax on Controlled Substances
Here’s an enhanced overview of Nevada Administrative Code Chapter 372A – Tax on Controlled Substances:
📘 NAC Chapter 372A Overview
1. General Provisions & Definitions (NAC 372A.010–.100)
Clarifies scope and confirms that civil tax collection doesn’t grant immunity from criminal prosecution under narcotics laws (nvrules.elaws.us).
Sets out definitions critical for applying later sections—e.g., “batch,” “cannabis,” “taxpayer,” and “excise tax on cannabis” as defined by NRS 372A.220 (leg.state.nv.us).
2. Revenue Stamp Requirements (NAC 372A.020)
Dealers of controlled substances (aside from cannabis) must affix state-issued revenue stamps to each package sold (law.cornell.edu).
Revenue stamps are not required for cannabis transactions already subject to the excise tax outlined later.
3. Excise Tax on Cannabis (NAC 372A.110–.160)
Definition alignment: Confirms that “excise tax on cannabis” in NAC matches NRS 372A.220 (leg.state.nv.us).
Taxpayer & transactions: Specifies who must file—“taxpayer” as per NRS 372A.250—and when the tax applies (at first sale to a cannabis establishment or consumer) (leg.state.nv.us).
Return filing & payment: Tax returns are due monthly, even if no tax is owed; documentation to show the tax was paid on the first wholesale sale must be kept. The Department may require additional financial statements for verification (leg.state.nv.us).
Wholesale exemption rule: If an excise tax is paid when a cultivation facility sells to another cultivation facility, no further excise tax is due upon the resale (leg.state.nv.us).
4. Consumption Lounge Exemption (Section 372A.Sec.11, effective 12/19/2024)
Cannabis transferred from an attached retail store to an adjacent consumption lounge is not taxed at transfer.
Tax only applies upon retail sale or use within the lounge: either when sold as single-use product or incorporated into a ready-to-consume product (regulations.justia.com).
🔗 How NAC Aligns with NRS 372A (Statutes)
NAC operationalizes statutes from NRS 372A.050–.160, .220–.290, etc., by detailing definitions, procedures, recordkeeping, and tax administration.
It implements statutory mandates such as the wholesale and retail cannabis excise taxes and associated reporting and compliance (e.g., NRS 372A.290) (law.justia.com).
✅ Summary Table
| NAC Provision | Focus Area |
|---|---|
| §§ 010–.100 | Scope, definitions, general tax rules |
| § 020 | Revenue stamps for non‑cannabis controlled substances |
| §§ 110–.160 | Excise tax on cannabis—definitions, payment, returns |
| Sec 11 (added Dec 2024) | Exemption: consumption lounge transfers |
💡 Why This Matters
Compliance clarity: Ensures cannabis businesses know when the excise tax is triggered and what records must be maintained.
Enforcement tools: Revenue stamps serve as a physical control mechanism for non‑cannabis controlled substances.
Targeted exemptions: Section 11 encourages consumption lounges by deferring tax until final sale or consumption.
✔️ Need More Details?
I can retrieve:
The exact text of sections (e.g., NAC 372A.160).
Background on how the excise rates differ between wholesale (15%) and retail (10%) under NRS.
Recordkeeping requirements supporting audits and verifications.
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