cannabis legalization

Tax expert says there could be significant revenues in cannabis legalization, some lawmakers still skeptical

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Comments and questions raised on Tuesday during an interim legislative tax policy committee point towards lengthy debates on recreational cannabis legalization in the upcoming legislative session in January. 

Richard Anklam, the president and executive director of the New Mexico Tax Research Institute, told lawmakers that states that were early in legalizing recreational-use cannabis like Colorado, Washington, Oregon and California have seen significant tax revenue increases in the past several years. Anklam, using a study from the Tax Foundation, a national think tank, said New Mexico could see roughly $70 million in excise taxes, before factoring in gross receipts taxes, if the state legalizes cannabis for recreational use. 

While not as common, Anklam said some states who have recently legalized recreational-use cannabis have developed tax models based on potency instead of by volume of what is sold. He said, the potential increase in tax revenue may not become the state’s saving grace, but that it would make a significant impact. 

“What’s the marijuana market worth? It’s worth a lot,” Anklam said. “Most states can’t fund highly significant portions of their government with it, but every little bit helps.”

Duke Rodriguez, the president and CEO of Ultra Health, a New Mexico medical cannabis production company, told lawmakers that despite the large amounts of possible tax money going to the state, current restrictions on cannabis production would not be conducive to a cannabis boom. 

Rodriguez has long been a vocal critic of the state’s Department of Health’s restrictions on how many plants producers can grow.

2020 Legislative Session

Solar tax credit heads to Guv’s desk

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A bill to reinstate a solar tax credit is headed to the governor’s desk. The bill, sponsored by Senate Majority Whip Mimi Stewart, D-Albuquerque, passed the House floor Wednesday by a vote of 51-19. SB 29 would create a personal income tax credit to cover 10 percent of the costs of a solar thermal or solar photovoltaic system for residential, business or agriculture applications. Democratic Rep. Matthew McQueen of Galisteo is the House sponsor of the bill. 

New Mexico initiated a similar tax credit in the last decade, which expired in 2016. The Legislature passed a bill to reinstate the credit that same year, but it was pocket-vetoed by then-Gov. Susana Martinez.

2020 Legislative Session

House passes renewable energy investment plan proposal

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The state House passed a memorial that would direct the State Investment Council (SIC) to explore investment opportunities in renewable energy, transmission and storage. HM 9 directs the SIC and the State Land Office to collaborate together on developing a strategic plan for investing in renewables and related projects within the state. “The goal of this memorial is to invest more renewables in our state,” said Democratic Rep. and bill sponsor Joseph Sanchez of Alcalde. “Our state has the second highest solar density in the country, second to the Mojave Desert in California. The renewable industry is booming in other states, this is a great opportunity to move forward in this area.”

Democratic Reps.

Adriann Barboa

Bill for uninsured passes after search for quorum

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With a vote of 6-0, Democrats on the House Taxation and Revenue Committee passed a bill that advocates say would help the uninsured and the underinsured. No Republicans voted on HB 278. Committee co-chair Javier Martinez, D-Albuquerque, tried to go to a vote at one point but then appeared to stall. He asked Rep. Deborah Armstrong, also a Democrat from Albuquerque, to talk more about the bill. A few advocates of the bill ran out of the hearing to try to find more Democrats who could return to the hearing.

2020 Legislative Session

Community solar bill passes first committee

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A proposal to expand access to solar energy for New Mexico residents through the development of community solar projects passed its first committee Tuesday. Community solar projects, also referred to as “solar gardens,” are programs in which the energy generated by local solar systems are shared among energy subscribers. The power generation is typically located in a central location and distributed to subscribers in the area. Albuquerque Democrat and bill sponsor Rep. Patricia Roybal Caballero presented HB 9 to the House Energy, Environment and Natural Resources Committee. Santa Fe Democratic Rep. Andrea Romero and the Speaker of the House Brian Egolf, who also represents Santa Fe, are co-sponsors of the bill, along with Albuquerque Democratic Sen. Antoinette Sedillo Lopez.

Featured

House votes to hike statewide minimum wage

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The state House of Representatives voted Friday night to raise the hourly minimum wage to $9.25 from $7.50 in 2018. The 37-30 vote, just days after the state Senate overwhelmingly passed a slightly smaller increase to $9, signals that a raise in the statewide minimum wage is increasingly likely as the legislative session enters its final weeks. The issue has been a priority for Democrats, who promised a raise during last year’s election, but it also has won some support from Republicans. The House vote on HB 442 was not strictly along party lines. Rep. Sarah Maestas Barnes, R-Albuquerque, broke with her party to vote in favor of the bill, while Rep. Candy Sweetser, D-Deming, voted against it.

2017 legislative session

‘The race is on’ between NM, CO for chile specialty license plate

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Colorado continues trying to steal New Mexico’s thunder when it comes to chile, for some reason. This time, legislators in New Mexico’s neighbor to the north want to create a special license plate in Colorado for chile growers. The proposal cleared the Colorado House on a voice vote Tuesday. New Mexico’s effort cleared its first committee Wednesday morning. “The Pueblo chile is Colorado’s chile,” Colorado state Rep. Daneya Esgar, D-Pueblo, said on the floor according to a press release.“Our local growers deserve recognition of their outstanding chiles.”

New Mexico state Rep. Cathrynn Brown’s proposal to have a green chile license plate cleared the Taxation and Revenue Committee on a unanimous vote Wednesday morning.

News

Local-option fuel tax gains bipartisan support in House

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Republicans and Democrats joined together Friday to advance a bill that would allow cities and counties in cash-strapped New Mexico to find out if voters are willing to pay more at the gas pump in order to support better roads and bridges. Lawmakers have had difficulty finding agreement on any tax issue the past two years, but HB 63 seems headed toward approval. The House Taxation and Revenue Committee gave it a unanimous thumbs up. Under the proposal, voters could impose a local-option tax on gasoline and diesel fuel sales to residents and visitors alike to fund road work. Sponsored by Reps.

Brian Egolf

House Energy committee clears solar tax bill

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The House Energy and Natural Resources Committee narrowly passed a bill to extend the state’s solar energy tax credit for another eight years. Two Albuquerque Republicans, one of whom is co-sponsoring the measure, supported the bill while all GOP representatives from rural communities opposed it. The final tally was 6-4. Rep. Sarah Maestas Barnes, R-Albuquerque, is carrying the bill in the House, with Sen. Mimi Stewart, D-Albuquerque as a cosponsor. “I see this bill as critical in terms of maintaining a key area of our economy,” Maestas Barnes said.

Featured

Capital outlay projects dead on arrival

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Proposals for statewide capital outlay were left languishing Saturday as a bitterly divided battle over funding methods consumed the state House of Representatives’ last day of the 2015 session. A narrow 36 to 32 vote minutes before the House adjourned sine die meant approval of late-hour committee changes to a capital outlay plan favored by the Senate, but that chamber ran out of time to concur with the House adjustments. The Republican-controlled House Ways and Means Committee made the controversial amendments Friday, adjusting road improvement funding mechanisms to honor preferences of the governor’s office. The committee changes would fund road improvements through $45 million in severance tax bonds rather than drawing down reserves from the state’s general fund. Rep. Larry Scott, R-Hobbs, described the measure as state government “borrowing short to build long-term assets,” adding it constituted “a sound practice from a business perspective.” Democrats vehemently objected to the changes, which they said would result in the denial of tens of millions of dollars from high- and critical-priority projects identified over the last year by local governments.