Katelyn Baker
Well-Known Member
Carson City - The Department of Taxation is closer to receiving nearly $890,000 for startup costs needed to begin regulating and taxing the new recreational marijuana industry in Nevada.
The three-person Nevada Board of Examiners approved $887,491 from the Interim Finance Contingency Account to go to the department for costs from Feb. 1 to June 30, 2017, though it still has to go the Interim Finance Committee for ultimate approval on Jan. 26.
The funding is intended to be a loan from Interim Finance contingency, though there is no detailing of any kind of payback plan currently.
Gov. Brian Sandoval and Attorney General Adam Laxalt approved the item, while Secretary of State Barbara Cegavske voted against it under the belief it should have been brought before the Legislature during the 2017 session starting Feb. 6.
Sandoval argued that putting it before the Legislature could delay the department's progress and endanger its mandatory deadline to adopt all regulations by Dec. 31, 2017.
"This really was critical to get this right," Sandoval said. "You can't just get up in the morning and put this together."
In November, Nevadans voted to allow anyone 21 and over to possess as much as one ounce of marijuana or one-eighth of an ounce of concentrate. The Department of Taxation will oversee the new industry and collect the 15 percent excise tax plus fees and licensing for dispensaries. By some estimates, the tax could generate $20 million for school capital projects each year.
"Some might ask why not wait until the legislature. It might put us behind two, three, four months. We need to start generating revenue for the state," said Rick Gimlin, administrative services officer with department.
The revenue - from the 15 percent excise tax and from the fees paid by those licensed to cultivate, produce and sell recreational marijuana - will go toward paying back the loan, covering the cost of the program and covering the costs of local governments spending resources on the program.
The remainder of the revenue will go toward capital projects for Nevada schools.
"Although I opposed this law, now that it's been overwhelmingly approved, we have to fund the Department of Taxation's regulatory regime. The worst thing we could do is leave them without the resources necessary to meet the law's requirements," Sandoval said.
Before the end of the year, the department must establish the following:
The department will spend most of the loan on software programming, about $596,000. Operational expenses–including communication services, supplies and rent - will cost about $133,000 and new equipment about $19,000.
Salaries, which will total slightly more than $129,000 are a lesser portion of the expenses. Travel expenses will cost about $8,000.
The Department of Taxation will request additional funds before the Legislature during the next fiscal year, funds that would cover an additional 12 to 15 more jobs for the recreational marijuana program.
It is unknown currently how much the department will be requesting, but the amount is expected to be detailed in Sandoval's proposed budget for Fiscal Year 2017-2018. He plans to release the proposed budget next week.
Legal sales of recreational marijuana likely will not be possible until midway through the year.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Governor Supports $900K Loan To Start Marijuana Program
Author: Jenny Kane
Contact: 775-788-6397
Photo Credit: Getty Images
Website: Reno Gazette-Journal
The three-person Nevada Board of Examiners approved $887,491 from the Interim Finance Contingency Account to go to the department for costs from Feb. 1 to June 30, 2017, though it still has to go the Interim Finance Committee for ultimate approval on Jan. 26.
The funding is intended to be a loan from Interim Finance contingency, though there is no detailing of any kind of payback plan currently.
Gov. Brian Sandoval and Attorney General Adam Laxalt approved the item, while Secretary of State Barbara Cegavske voted against it under the belief it should have been brought before the Legislature during the 2017 session starting Feb. 6.
Sandoval argued that putting it before the Legislature could delay the department's progress and endanger its mandatory deadline to adopt all regulations by Dec. 31, 2017.
"This really was critical to get this right," Sandoval said. "You can't just get up in the morning and put this together."
In November, Nevadans voted to allow anyone 21 and over to possess as much as one ounce of marijuana or one-eighth of an ounce of concentrate. The Department of Taxation will oversee the new industry and collect the 15 percent excise tax plus fees and licensing for dispensaries. By some estimates, the tax could generate $20 million for school capital projects each year.
"Some might ask why not wait until the legislature. It might put us behind two, three, four months. We need to start generating revenue for the state," said Rick Gimlin, administrative services officer with department.
The revenue - from the 15 percent excise tax and from the fees paid by those licensed to cultivate, produce and sell recreational marijuana - will go toward paying back the loan, covering the cost of the program and covering the costs of local governments spending resources on the program.
The remainder of the revenue will go toward capital projects for Nevada schools.
"Although I opposed this law, now that it's been overwhelmingly approved, we have to fund the Department of Taxation's regulatory regime. The worst thing we could do is leave them without the resources necessary to meet the law's requirements," Sandoval said.
Before the end of the year, the department must establish the following:
- Procedures for the issuance, renewal, suspension and revocation of licenses to marijuana retailers, cultivators, product manufacturing facilities, testing facilities and distributors
- Qualifications for licensure, security, packaging, labeling and testing of marijuana
- Procedures for oversight and enforcement of marijuana businesses and licensees (including record keeping, signage, marketing, display, advertising, etc.)
- Procedures for collection of taxes, fees and penalties.
The department will spend most of the loan on software programming, about $596,000. Operational expenses–including communication services, supplies and rent - will cost about $133,000 and new equipment about $19,000.
Salaries, which will total slightly more than $129,000 are a lesser portion of the expenses. Travel expenses will cost about $8,000.
The Department of Taxation will request additional funds before the Legislature during the next fiscal year, funds that would cover an additional 12 to 15 more jobs for the recreational marijuana program.
It is unknown currently how much the department will be requesting, but the amount is expected to be detailed in Sandoval's proposed budget for Fiscal Year 2017-2018. He plans to release the proposed budget next week.
Legal sales of recreational marijuana likely will not be possible until midway through the year.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Governor Supports $900K Loan To Start Marijuana Program
Author: Jenny Kane
Contact: 775-788-6397
Photo Credit: Getty Images
Website: Reno Gazette-Journal
