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New Mexico
Cannabis Market
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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
B
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
B
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
A
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
NA
NA
NA
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
77
# of Cultivators (allowed/issued)
No limit
35
# of Manufacturers (allowed/issued)
NA
13
# of Testing Labs (allowed/issued)
Determined by the Secretary of NM Department of Health
3
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