The governor of Nevada has endorsed a state of emergency declared for recreational marijuana regulations after the state's tax authority declared that many stores are running out of weed. This emergency regulation is to be voted on this Thursday.
"The initial weekend of legal operation of marijuana establishments resulted in well over 40,000 retail transactions and some establishments report sales of more than double their estimates", the department said on Friday, five days after sales opened on July 1.
Dispensaries in the state celebrated the change by opening their stores at midnight the day the sales became legal, expecting large crowds in the stores and even setting off fireworks.
Tourists and locals alike have been lining up in front of Nevada's dispensaries to purchase marijuana since its legalization went into effect July 1. The liquor industry had previously sued the state in order to gain access to marijuana distribution sales.
So yeah, it's not high times for the legal weed business the Silver State right now, but you have to think your uncle in Reno who's been selling pot out of his mom's house since the Reagan administration is one of the few people who are actually pretty stoked about the current state of affairs.
A "statement of emergency" - which the taxation department said received the governor's endorsement on July 7 - could bring relief.
This shocking news was announced by the State Department of Taxation, according to the Reno Gazette-Journal. The tax department is appealing the decision.
"A halt in this market will lead to a hole in the state's school budget", Klapstein said. Riana Durrett, executive director of the Nevada Dispensary Association, estimated industry-wide sales of around $3 million during the first four days of business.
The statement continues: "They have hired and trained thousands of additional employees to meet the demands of the market".
Currently, none of the seven alcohol wholesalers that have applied for licenses have been inspected by the state to determine if they meet the criteria and thus, none have obtained a distribution license. Medical marijuana distributors now can not provide recreational marijuana to dispensaries, but if the emergency regulation is adopted, Segerblom said, that will be "fixed in a second". The possession and use of recreational marijuana has also been legalized in Maine, Massachusetts, California and the District of Columbia, but sales there remain illegal for now.