One of New Mexico’s more prominent cannabis companies says there are discrepancies between state tax data and reported marijuana sales which indicate a major problem in the industry.
According to a news release from Ultra Health, the state’s Cannabis Control Division’s (CCD) reports that the adult-use weed industry has generated more than $501 million in revenue since sales began in April last year. With a Cannabis Excise Tax rate of 12 percent, the Taxation and Revenue Department (TRD) should have collected $60 million.
But the TRD reports it only collected $47 million in excise tax. According to that figure, the industry has sold $391 million worth of pot products—$110 million less than the cannabis division reports.
Ultra Health did not speculate on the source of this discrepancy but said the cannabis division’s numbers could skew the perceived level of demand in New Mexico. It also said that inflated sales figures could lead new operators astray if they are making business decisions based on the data.
NM’s Weed Diversity Overstated
Nearly a third of the state’s weed business owners are women and a quarter are members of minority groups, according to a new report. But the state’s data may be misleading since New Mexico has less stringent standards than the rest of the country.
According to the Diversity, Equity and Inclusion in the Cannabis Industry report from MJ Biz Daily, the percentage of women and members of minority groups who hold executive positions in the marijuana industry has returned to pre-pandemic levels.
The report found that 29.5 percent of New Mexico cannabis businesses were owned by women and about 24 percent were owned by members of minority groups.
This places New Mexico in high standing compared to other states, but the report’s authors point out that the state’s method of counting these businesses is much more lenient than in other parts of the nation. New Mexico counts businesses where a person owns at least 10 percent while other states only count majority stake-holders.
DEA Wants More Drugs
The federal Drug Enforcement Administration (DEA) is looking to increase its production quotas of cannabis, psilocybin and other drugs for research purposes.
According to a news release from the agency, the DEA is proposing to adjust the 2023 aggregate production quotas for several controlled substances, including doubling the quota of delta-9 THC and psilocybin mushrooms, and producing five times the amount of ibogaine, a psychedelic substance.
The agency says it needs to increase production of these controlled substances to keep up with increased medical, scientific and industrial demand, as well as for lawful export requirements and to maintain reserve stocks.
Although the DEA is proposing an increase in delta-9 THC production, it isn’t calling for an increase in cannabis plants.
The proposal is up for a 30-day open comment period at regulations.gov that ends Nov. 30.