Cannabis dispensaries no longer required to pay gross receipts tax

Marijuana

NEW MEXICO (KRQE) – Medical cannabis dispensaries and patients no longer have to pay gross receipts tax on sales. As of Tuesday, June 29, receipts from medical cannabis sales are deductible.

Following the passing of House Bill 2 during the special session, the New Mexico Regulation & Licensing Department reports that receipts from the sale of medical cannabis may be deducted from gross receipts starting Tuesday. In a press release, the department states that medical cannabis dispensaries are no longer required to pay gross receipts on those sales and shouldn’t pass any amount of gross receipts tax onto their customers for medical cannabis sales.

Additionally, sales of medical cannabis are also not subject to the new cannabis excise tax. NMRLD explains that since the start of medical cannabis sales, patients have paid gross receipts tax on medical cannabis purchases however the special session legislation changed this in an effort to support patients as the state transitions to adult-use recreational cannabis sales.

However, when adult-use cannabis sales begin in 2022, they will be taxed at 12% and will increase each year up to a maximum of 18%.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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