Nevada dispensaries are running out of weed, governor calls state of emergency

Nevada dispensaries are running out of weed, governor calls state of emergency

Nevada dispensaries are running out of weed, governor calls state of emergency

And because of the shortage, taxation officials announced on Friday that Governor Brian Sandoval has endorsed the department's "state of emergency" to fast track the adding of more recreational marijuana distributors.

Nevada's recreational marijuana legalization went into effect July 1 with expectations of $60 million in new tax revenue.

Nevada is already in the midst of a full blown marijuana "state of emergency", as the state's fledgling recreational market struggles to keep legal pot from flying off the shelves.

Stephanie Klapstein, a spokeswoman for the Department of Taxation, told the Reno Gazette-Journal that a collapsed marijuana market would have far-reaching consequences.

In declaring a state of emergency late last week, the state Department of Taxation warned that "this nascent industry could grind to a halt".

In Nevada, alcohol wholesalers have the exclusive rights to transport marijuana from growers to storefronts, due to a temporary court order that was extended in June by a Carson City district judge.

In 2016, Nevada voters approved a measure that would make recreational marijuana legal to residents who are 21-years-old or older.

A customer paying for marijuana products at the dispensary.

Given a complete monopoly on wholesale marijuana distribution in the state, alcohol wholesalers turned out to be completely incompetent. But Nevada has so far only received seven applications from liquor wholesalers. "People are there when we open [at 10 a.m.] and they're there when we close [at midnight]".

Deonne E. Contine, executive director of the state agency, wrote in the state of emergency declaration that the industry would be unable to function "unless the issue with distributor licensing is resolved quickly".

"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", Contine said. The taxation department since appealed the court's decision. Allowing for rounding, that only accounts for about 15 percent of sales-which is the state excise tax on the first wholesale sale. The associations suggests dispensaries made approximately $3 million in sales, while the state reaped a whopping $1 million in tax revenue.

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