New Mexico

Market Map

New Mexico
Cannabis Market

New Mexico Cannabis Market At-A-Glance

Overall Rating: B

Cannabis is one of New Mexico’s newest booming industries. The structure of the industry is set up quite differently than other states. Dispensaries are called LNPPs, which are licensed non-profit producers. Vertical integration is required in New Mexico as well. The medical cannabis market is on the rise with the introduction of new laws and a stronger licensing structure than the state previously had.

Medical Use: Yes

Adult Use: Yes

Market Potential

Since vertical integration is required, getting into the cannabis industry in New Mexico requires a significant amount of cash.

Licensing

B+

Generally there are no caps – it is up to the locality to decide if businesses can operate after the application process.

Competition

Cannabis sales have doubled in the past 2 years. New Mexico is starting to have increased competition with their northern border, Colorado. (coloradosun.org)

Tax/Regulatory Structure

1 gross receipt tax that has a low range.

New Mexico Cannabis Details

Population (Rank)

2,097,000

#36

Size/Density

17.36 sq. miles

#43

Medical Cannabis?

Yes

2008

Adult-Use Cannabis?

Yes

2018

2020 Medical Sales

2022 Projected Medical Sales

$199,000,000

$275,000,000

+38%

2020 Adult Use Sales

2022 Projected Adult Use Sales

Regulatory Agency

New Mexico Department of Health

https://www.nmhealth.org https://ccd.rld.state.nm.us/adult-use-licenses-permits-and-fees/

# of Dispensaries (allowed/issued)

No limit – Currently not accepting new applications

# of Cultivators (allowed/issued)

No limit

# of Manufacturers (allowed/issued)

# of Testing Labs (allowed/issued)

Determined by the Secretary of NM Department of Health

Vertical Integration?

Required

Residency Requirements?

Yes – Members of board of directors must be a NM resident

Social Equity?

Yes

Cannabis Taxes

Combined Tax Rate

5.125% to 8.8125%

Excise Tax

Called Gross Receipt Tax

Retail Sales Tax

None

Local Sales Tax

None

State Sales Tax

None

Cultivation Tax

None

Licensing Fees (per year)
^{*Varies based on gross revenue}

For all vertically integrated operations

$30,000 for the first 150 plants, $10,000 for each additional 50 plants

Application Fees

Lab Application Fee

$2,200

Manufacturer Application Fee

$1,000

Dispensary (LNPP) Application Fee

$10,000, $9,000 returned if denied

10/09/2021

Market Map

New Mexico Cannabis Market At-A-Glance

New Mexico Cannabis Details

Cannabis Taxes

Licensing Fees (per year) *Varies based on gross revenue

Application Fees

Licensing Fees (per year)
^{*Varies based on gross revenue}