New Mexico will end taxes on medical marijuana

SANTA FE, NM (AP) – New Mexico will stop collecting sales tax on medical products marijuana and begin revising the current pot growing limits on June 29th in the first steps to legalize recreational marijuana announced in a letter to authorized cannabis companies on Wednesday.

The medical marijuana business last month raised concerns about a possible spike in pot supplies and shortages during the transition unless authorities soon lift a nationwide limit on the number of marijuana plants that can be grown by each licensed grower.

Democratic Governor Michelle Lujan Grisham passed laws last month outlining the oversight, licensing and taxation of the recreational cannabis sector, with a deadline for the first non-medicinal marijuana sale on April 1, 2022.

Health Secretary Tracie Collins and Superintendent of Regulation and Licensing Linda Trujillo disagree with warnings of an impending marijuana shortage. They acknowledge that possession of up to 56 grams of marijuana will become legal on June 29 – but recreational marijuana sales will not begin until later. The deadline for initiating these sales is April 1, 2021 and possibly earlier.

The state’s newly enacted Cannabis Regulatory Act leaves many decisions about marijuana surveillance, including initial cultivation caps, the regulatory and licensing department, and a regulatory process that includes public comment.

“The rule-making will include changes to the existing limit values ​​for generating plants, although the content of the proposed rules has not yet been determined,” said the regulatory authorities’ letter. “The proposed rules will be made available to the public at the end of May and a public hearing is due to take place on June 29, 2021 or shortly thereafter. Our agencies will welcome input from medical cannabis producers and other interested members of the public as part of this regulatory process. “

Purchases from medical marijuana patients are still limited to a 90-day supply, which some patients have complained about as inadequate. This limit will increase – although it is unclear to what extent.

The state’s marijuana reforms remove the current gross income taxes on medical marijuana, which contributed roughly 5% and 9% to transactions. This brings medical marijuana in line with tax exemptions for other drugs.

A new 12% excise tax on recreational cannabis sales will not apply to medical cannabis to qualified, registered patients.