Get ready to pay a bit more for your cannabis in New Mexico starting July 1. The state’s cannabis excise tax is set to increase from 12% to 13%, marking the first of annual 1% hikes mandated by current law until 2030.
The New Mexico Taxation and Revenue Department recently issued a notice to licensees, outlining this change and other important updates impacting the cannabis industry. For more details on the excise tax, businesses can visit the Taxation and Revenue Department’s cannabis excise tax page.
In addition to the excise tax adjustment, there’s a significant change regarding Gross Receipts Tax (GRT) for medical cannabis sales. While the deduction under Section 7-9-73.2 NMSA 1978 still applies, businesses will now be required to report this deduction separately using code “D0-034.” A July 2025 to June 2026 GRT Filer’s Kit, attached to the original communication, provides comprehensive information on GRT rates and legislative changes. Businesses are encouraged to file returns electronically through the Taxpayer Access Point (TAP).
The department also highlighted its notification service, urging licensees to sign up for real-time updates on tax changes.
Finally, the notice reminded businesses about the acceptance of New Mexico’s Mobile ID for age and identity verification. This digital ID can be stored in a phone’s digital wallet and is acceptable for age verification, as confirmed by the Cannabis Control Division of the Regulation and Licensing Division’s FAQs.
For specific questions regarding cannabis excise tax accounts, licensees can reach out to the Taxation and Revenue Department through their contact page, selecting “Other Business Taxes” on the fillable form.
Didn’t you guys report on a bill that would undo these mandatory tax increases? I guess that must not have passed, but this is a good opportunity for some follow up reporting, no?
More reason to grow your own. It’s not rocket science.