Appeal holds Nevada recreational pot distribution licensing

CARSON CITY — The Nevada Department of Taxation will not issue any recreational marijuana distribution licenses to non-liquor wholesalers until an appeal of a decision made by the agency last week is heard by the Tax Commission, the agency reported Friday.

The commission is scheduled to hear the appeal on Aug. 29.

The appeal was filed Thursday after Carson City District Judge James Todd Russell denied a preliminary injunction sought by liquor distributors to stop the Tax Department from letting marijuana licensees transport recreational marijuana from growers to retailers.

The appeal will review the decision last week by Tax Department Director Deonne Contine that liquor wholesalers were insufficient to satisfy the demand for recreational pot deliveries.

“We look forward to the opportunity for a full and fair hearing before the Commission,” liquor wholesaler attorney Kevin Benson said following the ruling.

Since June, some Nevada alcohol distributors have been battling with the agency over the requirement that their industry has the exclusive right to distribute recreational marijuana for 18 months before the process could be opened to competition.

That right was granted in the 2016 ballot measure that legalized recreational marijuana in Nevada, but the Tax Department was given authority to open distribution rights if the liquor industry was unable to handle the business. That determination made by the agency on Aug. 10.

Contact Sean Whaley at swhaley@reviewjournal.com or 775-461-3820. Follow @seanw801 on Twitter.