Nevada declares state of emergency due to marijuana shortage
Nevada has declared a state of emergency because they are running out of marijuana.
Marijuana was only recently legalized, and the legalization became official on July 1. However, after only two weeks, the supply to meet the demand is simply not there, and it’s all down to a problem in transporting marijuana to the facilities.
When marijuana was legalized, the alcohol industry kicked up a fuss, claiming that the legalization of pot could cut into their profits. So, the state gave them a concession: for the first 18 months of legalization, only wholesale alcohol distributors would be allowed to transport marijuana.
The problem, however, is that these distributors are not keeping up with demand, not getting licensed fast enough, and thousands of people are left demanding product that isn’t there.
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This is, Nevada officials insist, a financial emergency, with millions of dollars being poured into the industry itself and with tax revenues expected to boost the state’s finances. There is a 10% sales tax on marijuana, not to mention a 15% tax on growers.
So, on Friday, Gov. Brian Sandoval issued a state of emergency, under which rules the state would be allowed to reexamine how to distribute the product.
“Based on reports of adult-use marijuana sales already far exceeding the industry’s expectations at the state’s 47 licensed retail marijuana stores and the reality that many stores are running out of inventory, the Department must address the lack of distributors immediately,” the Department of Taxation said in a statement. “Some establishments report the need for delivery within the next several days.”
However, the state assured alcohol distributors that they would still work with them.
“We continue to work with the liquor wholesalers who have applied for distribution licenses, but most don’t yet meet the requirements that would allow us to license them. Even as we attempted to schedule the final facility inspection for one of the applicants this week, they told us their facility was not ready and declined the inspection. As of mid-day Friday, not one distribution license has been issued,” Stephanie Klapstein, a spokesperson for the Department of Taxation, told USA Today.
