Marijuana demand in Nevada has exploded beating analysts’ expectations, but supply is running out because of a short-sighted last minute decision by a judge to give transportation rights to alcohol distributors. While more marijuana is available at grow facilities, alcohol distributors cannot transport it yet because they have not received the necessary licensing. The Governor of Nevada found a loophole involving the Department of Taxation that will allow distributors to transport the commodity to meet the immediate cannabis demand.
Governor Sandoval has endorsed emergency regulations that would give Nevada’s Department of Taxation the authority to determine whether there are enough liquor wholesalers to serve the legal marijuana distribution market.
Nevada launched recreational marijuana sales on July 1, becoming the fifth state in the country to do so.
According to the Taxation Department, adult-use marijuana sales are already far exceeding the industry’s expectations at the state’s 47 licensed retail marijuana stores.
Based on those reports and the reality that many stores are running out of inventory, the Department expressed the immediate need to address the lack of distributors. Some marijuana establishments have reported the need for delivery within the next several days.
The Department of Taxation says they will continue to work with liquor wholesalers who have applied for distribution licenses, but most don’t yet meet the requirements to allow them to be licensed.
According to the Department, they attempted to schedule the final facility inspection with one of the applicants this week but were told the facility was not ready and the inspection was declined.
“Without the ability to license marijuana distributors to continue the flow of product to the retail store, a high likelihood exists that consumers will revert to the black market,” said Deonne E. Contine, the Executive Director of the Nevada Department of Taxation in the emergency regulations.
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