ALBUQUERQUE, N.M. (KRQE) – Businesses sold $6.1 million worth of recreational cannabis sales in the first week of legalized sales. When combined with medical cannabis sales, retailers generated nearly $10 million in sales. Those numbers are from the Cannabis Control Division (CCD). They’ve been tracking sales since the opening day.
“New Mexicans supported cannabis businesses in record numbers this week,” CCD Director Kristen Thomson said in a news release. “Through careful regulatory planning hand-in-hand with industry, New Mexico cannabis producers have done something that’s never been done before. This week is something we can all be proud of.”
Albuquerque had the most total sales over the week, according to the data shows. Retailers within the city sold more than $2 million in recreational cannabis from April 1 to April 7.
Las Cruces and Santa Fe were next, with over $500,000 in sales. Rio Rancho retailers had a bit over $200,000 in sales.
Eventually, the CCD expects the industry to earn around $300 million in sales per year, according to their news release. That would be a statewide average of over $800,000 in sales per day.
The sales, translate to tax revenue for state and local coffers. Currently, cannabis sales are subject to a 12% excise tax, according to the Taxation and Revenue Department.
So, the $6.1 million in sales over the first week translate to more than $700,000 in excise tax revenue. Of that, two-thirds go to the state and one-third goes to local government, according to University of New Mexico finance professor Reilly White.
And there are additional taxes on top of the excise tax as well, according to White. The state will also get 5% of the $6.1 million. All totaled, state and local governments can expect a decent share of the cash.
“It is a significant amount of money,” White says. And although the earnings pale in comparison to tax earnings from oil in New Mexico — which generally amount to billions of dollars — White says the cannabis cash is still useful.
“It’s real money that can help the bottom line of the state government and local governments,” he says.