A. An excise tax is imposed on a cannabis retailer that sells cannabis products in this state. The tax imposed by this section may be referred to as the “cannabis excise tax”.

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B. The rate of the cannabis excise tax shall be at the following rates and shall be applied to the price paid for a cannabis product:

(1)     prior to July 1, 2025, twelve percent;

(2)     beginning July 1, 2025 and prior to July 1, 2026, thirteen percent; (3)     beginning July 1, 2026 and prior to July 1, 2027, fourteen percent; (4)     beginning July 1, 2027 and prior to July 1, 2028, fifteen percent; (5)     beginning July 1, 2028 and prior to July 1, 2029, sixteen percent;

(6)     beginning July 1, 2029 and prior to July 1, 2030, seventeen percent; and

(7)     beginning July 1, 2030, eighteen percent.

C. The cannabis excise tax shall not apply to retail sales of medical cannabis products sold to a qualified patient or a primary caregiver who presents a registry identification card issued pursuant to the Lynn and Erin Compassionate Use Act [N.M. Stat. Ann. Chapter 26, Article 2B] or a reciprocal participant who presents similar proof from another state, the District of Columbia or a territory or commonwealth of the United States at the time of the sale.