Albuquerque, N.M. – New Mexico is expected to generate a lot of tax revenue as the cannabis industry grows. Not all businesses are paying their fair share.
In the past few months, New Mexico Taxation and Revenue Department began contacting cannabis retail stores who had not filed their tax return. The department now says that its efforts are paying off.
TRD reports that 80 retailers have been brought up to date with their tax filings. The department claims that more than 100 licensees have yet to comply. TRD is working with cannabis regulators at the moment to verify which license holders actually conduct business and should therefore be paying tax.
In a recent press release, Taxation and Revenue secretary Stephanie Schardin Clarke stated that cannabis is a relatively young industry. Many new players may struggle to get their business up and running. “We’re here to help taxpayers comply with tax laws voluntarily, but cannabis retail stores must also make good faith efforts to comply.”
Retailers must file cannabis excise taxes and gross receipts tax returns. TRD states that they are required to file a return even if there have been no sales.
TRD provides managed audits to assist retailers in resolving tax debts. provides more information about that program.
TRD has so far collected over $47 million in cannabis excise taxes from retailers. The money is sent to the general fund of the state and local governments.
