New Mexico Government Puts Pressure On Cannabis License Holders Who Dodge Their Tax Bills

Over a hundred cannabis license holders in New Mexico haven't paid their tax bills, reported Green Market Report, citing the state Department of Taxation and Revenue's recent announcement.

According to an official statement the agency issued on Wednesday, 80 individuals who hold marijuana business permits have settled their tax obligations after being contacted over the summer.

Taxation and Revenue Secretary Stephanie Schardin Clarke said her department aims to help new cannabis businesses thrive.

The agency offers cannabis licensees "managed audits, a voluntary program to help taxpayers resolve tax debts and payment plans."

Read also: Ten Multistate Cannabis Companies Owe $500M To The IRS, Says A New Report

"We are here to assist taxpayers to voluntarily comply with the tax law, but cannabis retailers must also make a good faith effort to comply," she said. "Cannabis is a relatively new industry with many new players who may be struggling to get their businesses up and running."

To renew their state permits, cannabis businesses have to maintain good standing, with the state Regulation and Licensing Department overseeing the entire process.

New Mexico has garnered over $47 million in cannabis taxes to date.

New Mexico Cannabis Tax Dips In Q2 2023

Meanwhile, the U.S. Census Bureau's latest report revealed an overall national decline in quarterly tax revenue. Total cannabis excise sales tax revenue amounted to $606 million in the second quarter of 2023, down nearly 28 % from $839 million in the same quarter of last year.

Of the twenty states plus Washington D.C. that were tracked for the bureau's experimental data report, twelve witnessed a quarterly increase in excise sales tax revenue in the second quarter.

However, New Mexico wasn't one of them, being one of the nine states with a quarterly decline and one of the three states, along with Massachusetts and Rhode Island, that saw double-digit drops at 27, 33, and 16 %, respectively.

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