Dispensaries across New Mexico may owe money to the state depending on how they have taxed their adult-use products since the start of recreational sales.
Recreational cannabis sales are subject to a cannabis excise tax of 12%, as well as a local gross receipts tax on each transaction.
But many dispensaries, including Amnesia Dispensary & Accessories in Albuquerque, have combined the two taxes – something the state is saying is incorrect and can leave businesses owing the state additional money.
The New Mexico Taxation and Revenue Department sent a memo May 6 reminding cannabis businesses that gross receipts taxes “should be figured on the total sales price, including the excise tax amount.”
The memo included guidance on how to do that. For instance, a sale of $100 would include a 12% cannabis excise tax to bring the total to $112. Then, businesses would add the gross receipts tax to the combined total.
“I haven’t been made aware that I’m going to have to pay, but if they change that then it looks like I would have to,” said Julieta