Over the last few months, the New Mexico Taxation and Revenue Department (TRD) began contacting cannabis retailers who hadn’t filed their tax returns. Now, the department says those efforts are paying off.
TRD says 80 retailers were brought into compliance with their tax filings. But more than 100 license holders have not yet complied, the department says. TRD is currently working with cannabis regulators to verify which of those license holders are actually conducting business and therefore should be paying taxes.
“Cannabis is a relatively new industry with many new players who may be struggling to get their businesses up and running,” Taxation and Revenue Secretary Stephanie Schardin Clarke said in a press release. “We are here to assist taxpayers to voluntarily comply with the tax law, but cannabis retailers must also make a good faith effort to comply.”
Retailers are supposed to file gross receipts taxes and cannabis excise tax returns. They are supposed to file even if they have no sales, TRD says.
To help retailers come into compliance, TRD offers managed audits, a voluntary program to help fix tax debts. More information on that program can be found at this link.
So far, TRD has collected more than $47 million from the cannabis excise tax on retailers. The money goes to the state’s general fund and to local governments.