[Rev. 2/10/2015 5:13:09
PM--2014R2]
CHAPTER 372A - TAX ON CONTROLLED
SUBSTANCES
NRS 372A.010 Definitions.
NRS 372A.020 “Controlled
substance” defined.
NRS 372A.030 “Marijuana”
defined.
NRS 372A.040 “Sell”
defined.
NRS 372A.050 Department
to adopt regulations.
NRS 372A.060 Applicability
of chapter; no immunity from criminal prosecution.
NRS 372A.070 Registration
with Department as dealer; payment and calculation of tax on controlled
substances other than marijuana and marijuana products; identifying information
in tax return; civil penalty; action for enforcement.
NRS 372A.075 Tax
on sale of marijuana and marijuana products: Imposition; rates; distribution of
revenue collected; duty of Department to regularly review rates.
NRS 372A.080 Information
and records concerning dealer confidential; limitations on use and
admissibility of information; penalty for disclosure.
NRS 372A.090 Revenue
stamps: Design, printing and sale; record of stamps sold.
NRS 372A.100 Destruction
of spoiled or unusable revenue stamps.
NRS 372A.110 Deposit
and allocation of taxes, fees and penalties collected.
NRS 372A.120 Delivery
of controlled substances obtained by Department; law enforcement agency to
notify Department concerning person having possession of controlled substance.
NRS 372A.130 Action
to enjoin assessment or collection of tax, interest or penalty barred.
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NRS 372A.010 Definitions. As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 372A.020, 372A.030 and 372A.040
have the meanings ascribed to them in those sections.
(Added to NRS by 1987, 1737)
NRS 372A.020 “Controlled substance” defined. “Controlled
substance” includes:
1. A drug, substance or immediate
precursor listed in schedules I to V, inclusive, of the regulations adopted by
the State Board of Pharmacy; and
2. A substance which:
(a) Was manufactured by a person who at the time
was not currently registered with the Secretary of Health and Human Services;
and
(b) Is an imitation of or intended for use as a
substitute for a substance described in subsection 1.
(Added to NRS by 1987, 1737)
NRS 372A.030 “Marijuana” defined. “Marijuana”
has the meaning ascribed to it in NRS
453.096.
(Added to NRS by 1987, 1737)
NRS 372A.040 “Sell” defined. “Sell”
includes exchange, barter, solicitation or receipt of an order, transfer to
another for sale or resale, possession or transportation in contravention of
this chapter and any other transfer for any consideration or a promise,
obtained directly or indirectly.
(Added to NRS by 1987, 1737)
NRS 372A.050 Department to adopt regulations. The
Department shall adopt all necessary regulations to carry out the provisions of
this chapter.
(Added to NRS by 1987, 1737)
NRS 372A.060 Applicability of chapter; no immunity from criminal prosecution.
1. This chapter does not apply to:
(a) Any person who is registered or exempt from
registration pursuant to NRS 453.226 or
any other person who is lawfully in possession of a controlled substance; or
(b) Except as otherwise provided in NRS 372A.075, any person who acquires, possesses,
cultivates, manufactures, delivers, transfers, transports, supplies, sells or
dispenses marijuana for the medical use of marijuana as authorized pursuant to chapter 453A of NRS.
2. Compliance with this chapter does not
immunize a person from criminal prosecution for the violation of any other
provision of law.
(Added to NRS by 1987, 1737; A 2013, 3727)
NRS 372A.070 Registration with Department as dealer; payment and calculation
of tax on controlled substances other than marijuana and marijuana products;
identifying information in tax return; civil penalty; action for enforcement.
1. A person shall not sell, offer to sell
or possess with the intent to sell a controlled substance unless he or she
first:
(a) Registers with the Department as a dealer in
controlled substances and pays an annual fee of $250; and
(b) Pays a tax on:
(1) Each gram of a controlled substance,
or portion thereof, of $1,000; and
(2) Each 50 dosage units of a controlled
substance that is not sold by weight, or portion thereof, of $2,000.
2. For the purpose of calculating the tax
imposed by subparagraph (1) of paragraph (b) of subsection 1, the controlled
substance must be measured by the weight of the substance in the dealer’s
possession, including the weight of any material, compound, mixture or
preparation that is added to the controlled substance.
3. The Department shall not require a
registered dealer to give his or her name, address, social security number or
other identifying information on any return submitted with the tax.
4. Any person who violates subsection 1 is
subject to a civil penalty of 100 percent of the tax in addition to the tax
imposed by subsection 1. Any civil penalty imposed pursuant to this subsection
must be collected as part of the tax.
5. The district attorney of any county in
which a dealer resides may institute and conduct the prosecution of any action
for violation of subsection 1.
6. Property forfeited or subject to
forfeiture pursuant to NRS 453.301 must
not be used to satisfy a fee, tax or penalty imposed by this section.
7. As used in this section:
(a) “Controlled substance” does not include
marijuana, edible marijuana products or marijuana-infused products.
(b) “Edible marijuana products” has the meaning
ascribed to it in NRS 453A.101.
(c) “Marijuana-infused products” has the meaning
ascribed to it in NRS 453A.112.”
(Added to NRS by 1987, 1738; A 1989, 814; 2013, 3727)
NRS 372A.075 Tax on sale of marijuana and marijuana products: Imposition;
rates; distribution of revenue collected; duty of Department to regularly
review rates.
1. An excise tax is hereby imposed on each
wholesale sale in this State of marijuana by a cultivation facility to another
medical marijuana establishment at the rate of 2 percent of the sales price of
the marijuana. The excise tax imposed pursuant to this subsection is the
obligation of the cultivation facility.
2. An excise tax is hereby imposed on each
wholesale sale in this State of edible marijuana products or marijuana-infused
products by a facility for the production of edible marijuana products or
marijuana-infused products to another medical marijuana establishment at the
rate of 2 percent of the sales price of those products. The excise tax imposed
pursuant to this subsection is the obligation of the facility for the
production of edible marijuana products or marijuana-infused products which
sells the edible marijuana products or marijuana-infused products to the other
medical marijuana establishment.
3. An excise tax is hereby imposed on each
retail sale in this State of marijuana, edible marijuana products or
marijuana-infused products by a medical marijuana dispensary at the rate of 2
percent of the sales price of the marijuana, edible marijuana products or
marijuana-infused products. The excise tax imposed pursuant to this subsection:
(a) Is the obligation of the medical marijuana
dispensary.
(b) Is separate from and in addition to any
general state and local sales and use taxes that apply to retail sales of
tangible personal property.
(c) Must be considered part of the total retail
price to which general state and local sales and use taxes apply.
4. The revenues collected from the excise
taxes imposed pursuant to subsections 1, 2 and 3 must be distributed as
follows:
(a) Seventy-five percent must be paid over as
collected to the State Treasurer to be deposited to the credit of the State
Distributive School Account in the State General Fund.
(b) Twenty-five percent must be expended to pay
the costs of the Division of Public and Behavioral Health of the Department of
Health and Human Services in carrying out the provisions of NRS 453A.320 to 453A.370, inclusive.
5. The Department shall review regularly
the rates of the excise taxes imposed pursuant to subsections 1, 2 and 3 and
make recommendations to the Legislature, as appropriate, regarding adjustments
that the Department determines would benefit the residents of this State.
6. As used in this section:
(a) “Cultivation facility” has the meaning
ascribed to it in NRS 453A.056.
(b) “Edible marijuana products” has the meaning
ascribed to it in NRS 453A.101.
(c) “Facility for the production of edible
marijuana products or marijuana-infused products” has the meaning ascribed to
it in NRS 453A.105.
(d) “Marijuana-infused products” has the meaning
ascribed to it in NRS 453A.112.
(e) “Medical marijuana dispensary” has the
meaning ascribed to it in NRS 453A.115.
(f) “Medical marijuana establishment” has the
meaning ascribed to it in NRS 453A.116.
(Added to NRS by 2013, 3726)
NRS 372A.080 Information and records concerning dealer confidential;
limitations on use and admissibility of information; penalty for disclosure.
1. Except as otherwise provided in NRS 239.0115, all information which is
submitted to the Department by or on behalf of a dealer in controlled
substances pursuant to this chapter and all records of the Department which
contain the name, address or any other identifying information concerning a
dealer are confidential.
2. No criminal prosecution may be
initiated on the basis of:
(a) Information which was submitted to the
Department; or
(b) Evidence derived from information submitted
to the Department, pursuant to this chapter or any regulation adopted pursuant
thereto.
3. No information described in paragraph
(a) or (b) of subsection 2 is admissible in a criminal prosecution, unless the
prosecution shows that the information:
(a) Was independently discovered; or
(b) Inevitably would have been discovered based
on independent information.
4. This section does not prohibit the
Department from publishing statistics that do not disclose the identity of a
dealer or the contents of a particular return or report submitted to the
Department by a dealer.
5. Any person who releases or reveals
confidential information in violation of this section is guilty of a gross
misdemeanor.
(Added to NRS by 1987, 1738; A 2007, 2094)
NRS 372A.090 Revenue stamps: Design, printing and sale; record of stamps
sold.
1. The Department shall:
(a) Design suitable stamps for the purpose of
this chapter.
(b) Have as many stamps printed as may be
required.
(c) Sell the stamps to dealers in controlled
substances who are registered.
2. The stamps must be serially numbered
and the Department shall maintain a record of the number of each stamp with the
name of the dealer to whom it was sold.
(Added to NRS by 1987, 1738)
NRS 372A.100 Destruction of spoiled or unusable revenue stamps. Upon the written authorization of the State
Board of Examiners, any spoiled or unusable stamps in the possession of the
Department may be destroyed. The written authorization of the State Board of
Examiners must set forth the number, denomination and face value of the stamps.
(Added to NRS by 1987, 1739)
NRS 372A.110 Deposit and allocation of taxes, fees and penalties collected.
1. All taxes and fees collected by the
Department pursuant to this chapter, after deducting the actual cost of
producing the stamps and administering this chapter, must be deposited with the
State Treasurer for credit to the State General Fund and accounted for
separately.
2. The Governor or his or her designee
shall administer the money credited to the State General Fund pursuant to
subsection 1. The money may be expended only for grants to county and city law
enforcement agencies for the enforcement of chapter
453 of NRS.
3. Any civil penalty collected by a
district attorney pursuant to NRS 372A.070 must be
deposited in the county treasury for the purposes of law enforcement and
conducting criminal prosecutions.
(Added to NRS by 1987, 1739; A 1989, 814)
NRS 372A.120 Delivery of controlled substances obtained by Department; law
enforcement agency to notify Department concerning person having possession of
controlled substance.
1. The Department shall immediately
deliver any controlled substances which come into its possession in the course
of administering this chapter, with a full accounting to the Investigation
Division of the Department of Public Safety.
2. The Investigation Division of the
Department of Public Safety and every other law enforcement agency shall notify
the Department of each person it discovers having possession of a controlled
substance and the serial number of any stamps affixed.
(Added to NRS by 1987, 1739; A 2001, 2601)
NRS 372A.130 Action to enjoin assessment or collection of tax, interest or
penalty barred. No person may
bring suit to enjoin the assessment or collection of any taxes, interest or
civil penalties imposed by this chapter.
(Added to NRS by 1987, 1739)