Friday, March 24, 2023

Blunts: Producers Face Steep Tax Bills

Cannabis News


Some New Mexico producers are facing higher than expected tax bills after reportedly charging customers too little.

Earlier in May the New Mexico Taxation and Revenue Department (TRD) sent out a press release announcing the first collection of taxes on adult-use cannabis sales and detailing how the taxes would be calculated.

According to the release, “Gross Receipts Tax should be figured on the total sales price, including the excise tax amount. For example, a retailer in Albuquerque who sells $100 of adult use cannabis would pay 12 percent in excise tax on that sale. Then, when determining the Gross Receipts tax due, the retailer would apply the Albuquerque Gross Receipts Tax rate—currently 7.875 percent—on $112 (sale price plus excise tax) to come up with gross receipts tax due of $8.82.”

But according to NM Political Report, a number of cannabis businesses calculated the Gross Receipts tax independently without consideration for the excise tax. The state’s seed-to-sale tracking system BioTrack was reportedly calculating taxes incorrectly as well. Ultimately, that means producers and retailers have been undercharging customers since adult-use sales began April 1.

The state’s Cannabis Regulation Act is unclear on how to calculate the tax. Gross receipts and excise taxes are due on May 25.

Pojoaque and Picuris Pueblos to Administer Pot Taxes

An intergovernmental agreement between the Pueblos of Pojoaque and Picuris and TRD will give the Pueblos control over marijuana taxes on Tribal lands.

According to a press release from TRD, the state cannabis excise tax will not apply to cannabis enterprises operating on tribal lands. “New Mexico has a strong history of collaborating with tribes to efficiently administer taxes while recognizing tribal sovereignty and the limitations of state authority on tribal lands,” said Taxation and Revenue Secretary Stephanie Schardin Clarke. “This administration is committed to strengthening relationships with tribal governments.”

Both pueblos have also entered into cooperative agreements with the TRD regarding taxation. “The Pueblo of Pojoaque is very pleased to enter into this cannabis tax agreement and continue and expand our cooperative efforts with the State of New Mexico regarding intergovernmental tax coordination and administration,” said Pojoaque Gov. Jenelle Roybal.

Health Officials Talk Kratom

The National Institutes of Health (NIH) recently hosted a meeting to discuss the therapeutic qualities of kratom, a controversial drug used as a pain reliever and opioid substitute.

Kratom has become popular in recent years as a natural substitute for opioids. While little study into the subject has been conducted, many patients reportedly use the drug to reduce opioid and methamphetamine use.

During the NIH meeting, researchers discussed promising evidence for the drug’s medical efficacy and the need for a stronger focus on its study. Kratom is currently legal in the U.S.


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