Nrs: Chapter 372A - Tax On Controlled Substances

Link to law: https://www.leg.state.nv.us/NRS/NRS-372A.html
Published: 2015

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[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.

_________

_________

 

      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)