For the second half of 2019,
Nevada cultivators shall be subjected to decrease taxes in comparison with the primary six
months of the yr, significantly on plant materials offered and transferred for
extraction and product manufacturing.
Nevada’s 15% excise tax on cultivators
is calculated based mostly on Truthful Market Values (FMVs)
for the assorted sorts of merchandise offered or transferred
internally by growers to processors or storefronts. The state Division of
Taxation (NDOT) determines FMVs biannually. Cultivators are topic to a tax of
15% of the FMV for every pound, or different unit, of a respective product offered or
moved to an related license.
H2 2019’s FMV for flower was
calculated at $2,300 per pound, down nominally from $2,303 per pound within the
opening half of this yr. Equally, the FMV for “small bud” skilled a
slight lower, from $2,041 per pound in H1 to $2,000 per pound in H2, a
decline of two%.
Whereas levies on flower and small
bud will stay comparatively steady for Nevada’s cultivators via everything
of this yr, important reductions within the FMVs for varied sorts of plant
materials destined for extraction will lighten the tax burdens of producers in
The FMV for trim declined by 24.6%
from H1 to H2, from $794 to $599 per pound. In the identical span, the FMV for moist
entire vegetation additionally fell by a comparable proportion – 24.1% – from $191 to $145
FMVs for flower and trim accepted
for extraction have been set at $522 and $510 per pound, respectively, for H2
2019. These figures are off by 38.6% and 17.3%, respectively, in comparison with these
of the prior interval.
As within the case of Colorado’s
Common Market Charges (AMRs), Nevada’s FMVs are based mostly on historic information – in
this case on transactions from October 1, 2018 via the tip of March 2019 –
and don’t essentially replicate present market circumstances precisely. It should
even be famous that the methodology employed by NDOT in figuring out FMVs is
completely different from that of Hashish Benchmarks in calculating our worth