Launching retail marijuana sales in Nevada will cost $14M over 2 years

Getting Nevada’s retail marijuana industry off the ground will cost about $14 million over the next two years, the state’s tax department director said Thursday.

That money would be used to pay for state-level personnel tasked with regulating the industry, new equipment, operating expenses and information technology needs.

The majority of the budget — $10 million — is set aside as grants that local governments can apply for to pay for local regulatory needs.

The state expects the industry to pay for the regulatory expenses to the tune of about $7 million per year. That money would come from marijuana dispensaries, production facilities and cultivation centers through application, licensing and other permit fees.

Department of Taxation Director Deonne Contine said the state is pushing forward with the “quick-start” plan, in which medical marijuana dispensaries in good standing with the state will be able to apply for temporary recreational sales licenses.

The state hopes to start accepting applications for those temporary licenses in May, with sales starting on July 1.

The application fees will cost companies $5,000 each, and the licenses will range in costs from $15,000 to $30,000, Contine said.

Contact Colton Lochhead at clochhead@reviewjournal.com or 702-383-4638. Follow @ColtonLochhead on Twitter.