With Nevada’s “Early Start” recreational program set to kick off on July 1st, we have received a lot of questions about how the new regulations will impact our current medical patients and future rec customers. The biggest question that many people have is how pricing will change in the face of an open market with increased demand and new taxes and fees. We’re here to provide some clarity, and affirm our commitment to bring you the best products at the lowest prices.
First, the good news.
Under the new Nevada state regulations, the old medical patient purchase limit of 70 grams in any two-week period is going away. Both medical and recreational customers will be limited to one ounce per transaction, but you may make more than one transaction in a day. Say goodbye to the days of watching your grams and waiting for an old purchase to drop off so you can re-up. Please be aware that with state possession limits, medical patients can still possess up to 2.5 ounces, while recreational customers are only allowed to possess up to one ounce.
Why are prices changing?
Part of the reason for the price change is that the wholesale tax that Reef pays when purchasing from cultivators has increased because of Question 2’s passing, so our prices are slightly changing to reflect that cost.
The other change you will notice involves sales taxes. Reef’s prices have historically included all sales tax and other taxes calculated at the register. As of July 1, recreational customers will pay a 10% excise tax. With different customers paying different tax rates, we are changing our menu prices to exclude these taxes – meaning that you will pay them at the register just like almost every other retail experience. Different regions of the state have different sales and business license tax rates, so the final after-tax price of each item will differ slightly at each store.
See below for price breakdowns at each store.
Las Vegas Strip:
North Las Vegas:
What kind of taxes do you pay on cannabis?
– Sales tax: This is your standard Nevada sales tax, just like you would pay on any other purchase. You pay this at the register.
– MME Business License tax fee: This is where the fluctuations come in, as each region of the state requires different fees for business licenses. You pay this at the register.
– Excise tax: This is a marijuana specific tax equal to 10% for recreational purchases only (no excise tax on medical purchases). You pay this at the register.
– Wholesale tax: This tax is applied to any wholesale purchases of cannabis that we make, whether grown in-house or attained from a third-party cultivation. This tax is baked into the menu price of the product and not added at the register when you make a purchase at Reef.
Where are all of these taxes going?
These taxes help the state of Nevada. Experts have predicted a $70 million windfall in the first year from marijuana taxes, a large part which will go to help education, among other programs. The wholesale tax that’s driving the increase in medical prices will go to support Nevada schools. Currently, Nevada high schools rank 49th in the nation in education. We can do better!
When will the new pricing go into effect?
To allow us to comply with new regulations promptly on July 1st, these new prices will go into effect on Monday June 26th. We expect recreational sales will begin July 1st in Las Vegas and North Las Vegas, and in mid-July in Sparks and Sun Valley.
Much like gasoline, we expect to see prices fluctuate regularly across the industry as market trends change. We are committed to continuing to innovate and leverage our scale to bring you the lowest prices in the industry. Thank you for your support!