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Nevada Tax Commission Hits Liquor Distributors Again Over Marijuana

The Nevada Tax Commission on Tuesday dealt another blow to liquor distributors hoping to hold a monopoly on distributing retail marijuana throughout the state.

Tax commissioners voted to uphold a determination by the Nevada Tax Department that there are not enough licensed liquor distributors to properly serve the state’s recreational marijuana market.

Lawyers for alcohol distributors argued that the Aug. 10 meeting, in which the department decided to license beyond alcohol distributors, did not give them proper due process to argue their case and forced them to appeal the department’s decision.

“There was no opportunity to question anything being presented in the meeting,” said Kevin Benson, attorney for a group of alcohol distributors. “There was no way to get to the bottom of any of those things.”

Alcohol distributors have fought for months to gain a monopoly on commercial marijuana deliveries for the first 18 months of retail sales. Those distributors argue that such a monopoly was given to them by the recreational marijuana legalization law voters approved in November.

But the Nevada Tax Department and the marijuana industry have argued that there are not enough delivery options, leading to lower product counts and lost sales. [Read more at Las Vegas Review-Journal]

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