Home New mexico tax Cannabis sales in New Mexico slowly increase as more retailers join the market

Cannabis sales in New Mexico slowly increase as more retailers join the market

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Commercial cannabis sales in August were up about $374,000 from July, according to data released Wednesday by New Mexico’s Cannabis Control Division.

Total sales topped $40 million for the second month in a row, a high (if you will) since regulated adult cannabis sales opened on April 1.

Meanwhile, tax data suggests that the number of retailers sharing the market is growing much faster than the adult cannabis market.

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In July, the State Department of Taxation and Revenue collected returns from 149 retailers for a total excise tax of $2,472,376.45 on June sales, in addition to the GRT which varies by depending on local tax rates. Last week, the department said 171 had filed returns due Aug. 25, which would amount to July excise taxes of $2,524,255.65.

Based on this data, the number of cannabis retailers reporting their taxes increased by 15%, while revenues collected in excise taxes only increased by 2%.

Total sales reported in July exceeded $40.3 million, which was the highest point since the state opened up sales of cannabis for adult use. In August, total medical and non-medical cannabis products were reported at $40.7 million, with medical cannabis sales down 2.1% since July.

Of $40,679,290.19 in sales reported by dispensaries in 54 municipalities, $24,219,338.50 was for adult use and subject to excise taxes and gross receipts. $16,459,951.69 was for non-taxable medical products available to those enrolled in the state’s medical cannabis program.

Adult use or “recreational” cannabis sales increased 3% in the month.

The top five cities, which also topped July sales, accounted for 61% of the total August market: Albuquerque ($14.6 million), Santa Fe ($3.5 million), Las Cruces ($3.3 million), Hobbs ($1.7 million) and Rio Rancho. ($1.6 million).

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Showroom at the Pecos Valley Production Cannabis Dispensary in Sunland Park, NM on Friday, April 1, 2022, the first day of legal recreational cannabis sales in the state.

Neighboring towns in Texas, where cannabis remains illegal except for some medical applications, continued to see robust sales, with Sunland Park (adjacent to El Paso) seeing both medical and mostly non-medical growth. The city reported combined sales of $1.5 million, including $1.3 million in adult use – the fourth highest in the state.

The unincorporated community of Chaparral, also located near El Paso, saw total sales jump 92% to $306,533 from July’s $159,426, including jumps in both categories of products.

Carlsbad in the Southeast also saw monthly growth with total sales of $1.2 million, including increases in both product categories.

Although Ruidoso was among the top 10 municipalities for sales in August with a total of $1.08 million, its sales of medical and non-medical products fell from July to August.

Jason Little of New Mexico Alternative Care stands behind the counter at his Farmington medical marijuana dispensary which will celebrate its 10th anniversary in December.

Alamogordo’s combined total of $980,570 in sales was slightly higher than its July receipts thanks to recreational sales.

Farmington also saw its sales increase in August, totaling $800,655, due to increased sales of recreational cannabis, as sales of medical products there fell 4.1%.

To the southwest, meanwhile, Deming saw an increase in medical cannabis sales, with $100,983, while recreational cannabis sales were lower than in July, for total sales of $252,846 including 151 $864 for adult use.

Algernon D’Ammassa can be reached at 575-541-5451, [email protected] or @AlgernonWrites on Twitter.

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