Section 372A.155 - Method for calculating fair market value at wholesale for various categories of cannabis1. During the month immediately following the end of each calendar quarter, but not later than 30 days after the end of the calendar quarter, the Department will: (a) Calculate the fair market value at wholesale of each category of cannabis described in subsection 3 using the methodology described in this section; and(b) Post on the Internet website of the Department the fair market value at wholesale of each category of cannabis described in subsection 3.2. The fair market value at wholesale of each category of cannabis becomes effective on the first day of the month immediately following the month in which the fair market value at wholesale is posted on the Internet website of the Department pursuant to paragraph (b) of subsection 1.3. The fair market value at wholesale of:(a) Cannabis bud must be calculated on the basis of the total weight of all cannabis bud that is sold, excluding the inadvertent inclusion of an inconsequential amount of cannabis bud in a sale of cannabis trim.(b) Cannabis trim must be calculated on the basis of the total weight of all cannabis trim that is sold, including the total weight of an inconsequential amount of cannabis bud which is inadvertently included.(c) Immature cannabis plants must be calculated on the basis of the total number of immature cannabis plants sold.(d) Whole wet cannabis plants must be calculated on the basis of the total weight of the entire whole wet cannabis plant. A cannabis cultivation facility shall maintain records of the time each batch containing whole wet cannabis plants is harvested and weighed which contain the weight of each plant, are in writing and are created contemporaneously with the harvesting and weighing. To determine the total weight of the whole wet cannabis plant: (1) The plant must not undergo any further processing, including, without limitation, drying the plant and subsequently selling separately the cannabis bud and cannabis trim from the plant, before being weighed; and(2) The plant must be weighed within 2 hours after the harvesting of the batch containing the plant and without any further processing of the plant, including, without limitation, increasing the ambient temperature of the room in which the plant is held or drying, curing or trimming the plant. If the whole wet cannabis plant is not weighed within 2 hours after the harvest of the batch containing the plant or is subjected to further processing, the fair market value at wholesale of the plant must not be calculated pursuant to this paragraph and must be calculated pursuant to paragraph (a) or (b).(e) Pre-rolls must be calculated on the basis of the total weight of all cannabis that is contained in a pre-roll that is assembled and sold by a cannabis cultivation facility.(f) Any other category of cannabis must be determined by the Department on a case-by-case basis.4. To calculate the fair market value at wholesale of a category of cannabis described in subsection 3, the Department will:(a) Identify each wholesale sale of cannabis in the category between a cannabis cultivation facility and another cannabis establishment that is not an affiliate of the cannabis cultivation facility that occurred in the immediately preceding calendar quarter, as recorded by computer software used by the Cannabis Compliance Board for the seed-to-sale tracking of cannabis. If the Department determines that an insufficient number of such sales occurred in the immediately preceding calendar quarter to determine a median sales price that is statistically valid, the Department may additionally identify wholesale sales of cannabis in the category between a cannabis cultivation facility and another cannabis establishment that is not an affiliate of the cannabis cultivation facility that occurred in each immediately preceding calendar quarter until a sufficient number of such sales are identified to draw a statistically valid conclusion.(b) Standardize the sales prices for all wholesale sales identified pursuant to paragraph (a) by adjusting the actual sales price for each wholesale sale to an amount that reflects the sales price per pound or per unit, as applicable. If subsection 3 requires the fair market value at wholesale of the category of cannabis to be calculated on the basis of:(1) Total weight, the sales prices must be adjusted to amounts that reflect sales prices per pound.(2) Total number sold, the sales prices must be adjusted to amounts that reflect the sales prices per unit.(c) Identify each wholesale sale identified pursuant to paragraph (a): (1) That was recorded as an internal transfer, sample, display, promotion, tester or trial; or(2) For which the sales price, after being standardized pursuant to paragraph (b), was less than 15 percent or more than 500 percent of the fair market value at wholesale of the category of cannabis at the time in which the sale was made.(d) Determine the median of all the standardized sales prices determined pursuant to paragraph (b), but not including any wholesale sale identified pursuant to paragraph (c).5. The fair market value at wholesale of a category of cannabis calculated by the Department pursuant to subsection 1 must be equal to the median standardized price determined pursuant to paragraph (d) of subsection 4.6. As used in this section, "calendar quarter" means a period of 3 consecutive months commencing on the first day of March, June, September or December in any year.Nev. Admin. Code § 372A.155
Added to NAC by Tax Comm'n by R108-20A, eff. 4/11/2022; A by R052-23A, eff. 12/19/2024NRS 360.090, 372A.050, 678B.640