Tax Commission approves temporary pot regulations

The Nevada Tax Commission this week approved the temporary regulations that will implement the voter approved recreational marijuana law.

Taxation officials say the goal is to begin issuing licenses by July.

Spokesman Stephanie Klapstein said the temporary rules will be in effect until permanent regulations are approved. The Department of Taxation has until the end of this year to finalize those regulations.

Klapstein said the regulations were approved with a couple of amendments designed to answer the concerns of independent liquor distributors who said the original rules essentially cut them out of the business. Independents including Carson City’s Kurt Brown of Capitol Beverage say the language opened up the licensing of distributors who will transport the marijuana from cultivators to stores to those already licensed through the medical marijuana program in violation of the law approved by voters. They argue that law gives alcohol distributors a first crack at those licenses.

Klapstein said the first amendment removed that language, instead saying whether to license non-distributors will be made after the department sees how many applicants there are to distribute recreational marijuana.

“Once we know how many establishments have applied, we’ll make the determination,” she said.

That means existing liquor wholesalers, medical marijuana establishments and those businesses already licensed to transport and deliver marijuana to medical dispensaries can all apply.

The other change, Klapstein said, is to provide for the possibility of an additional application period during the temporary regulation window if there aren’t a lot of applicants or situations changed. She said that could happen, “if it’s looking like the market is not being served.”

“Then, if we need to, we can open it up to some other folks,” she said.