The Nevada Department of Taxation will meet Thursday to consider an emergency regulation to allow it to issue distribution licenses before the industry comes to a grinding halt.
While the Mary Jane users of the other USA states and territories are concealing their recreational habits, Nevada is calling a state of emergency on the shortage of the substance available. The department's spokeswoman, Stephanie Klapstein told Reno-Gazette Journal in an email that establishments are reporting "the need for delivery within the next several days". Klapstein warned that the lack of supply could lead to job losses at the dispensaries and lost money for the state's schools, which benefit from a 15% tax on marijuana cultivation.
"The current law is you have to be a liquor distributor to transport marijuana and none of those people have licenses", Segerblom said.
Are Nevada officials actually trying to preserve the state's marijuana black market? The market for marijuana is now operating under emergency regulations issued July 6 after booze distributors went to court to protect a temporary, legally guaranteed monopoly on recreational marijuana sales guaranteed them by last year's ballot measure.
So the dispensaries - all of them already in the medical marijuana business - are relying on marijuana they had in stock. The department opened applications to marijuana businesses earlier this year, but a judge shut it down, siding with alcohol distributors.
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Many Nevada dispensaries had stockpiled marijuana before legalization took effect.
The tax authority claimed most liquor wholesalers who have applied to distribute marijuana have yet to meet requirements to be licensed. The 47 clinics in the State have generated sales of more than $ 3 million in the first two days.
Department officials point out marijuana business owners have invested huge amounts of money to build facilities in Nevada, hiring and training thousands of employees.
The distribution crisis, however, has been caused by a legal spat brought about by Nevada's liquor industry. 'Even as we attempted to schedule the final facility inspection for one of the applicants this week, they told us their facility was not ready and declined the inspection. An additional 10% marijuana sales tax goes into the state's rainy-day fund.