The governor celebrates the one-year anniversary of the adult marijuana market in New Mexico. They highlight the state’s impressive sales numbers of more than $300 million since April of last year and the many job opportunities the cannabis industry has created.
On Monday, Governor Michael Logan Grisham (D) You mentioned that recreational marijuana sales It has held steady over the past year, with the monthly record for purchases set in March at $32.3 million. Aside from the $300.1 million in sales made by the adult use market, New Mexico also recorded nearly $187.4 million in medical cannabis sales over the past year, bringing the grand total to $488.3 million.
In a press release, the governor stated that within a year, the cannabis industry has generated hundreds of millions of dollars in economic activity for communities statewide. In addition, the number of companies in this industry is increasing, employing thousands of New Mexicans. The governor expressed his enthusiasm for the future of an innovative and safe adult-use cannabis industry.
Since marijuana stores opened in the state, New Mexico has collected more than $27 million in tax revenue from adult cannabis sales, which has benefited the state and localities general fund. In addition, the governor confirmed that sales resulted from more than 10 million transactions made during the year.
Linda Trujillo, supervisor of the Department of Regulation and Licensing, stated that the cannabis industry in New Mexico has shown remarkable potential. From the Governor signing legislation to creating the Anti-Cannabis Division and implementing the new industry. She was optimistic about further expansion in the second year.
It was not revealed if Lujan Grisham was involved in any in-market buys during his first year. However, she did not rule out the possibility during a previous visit to a cannabis retailer on opening day last year.
The road to legalizing cannabis in New Mexico
A new New Mexico law legalizing cannabis will go into effect in June 2021, allowing individuals 21 years of age or older to own and grow limited amounts of cannabis for personal use. The law allows possession of up to an ounce of marijuana and 16 grams of concentrate and the cultivation of up to six mature plants.
The Cannabis Control Division, which operates under the state’s Department of Regulation and Licensing, has followed its schedule to the letter. The department established an advisory committee and began accepting select commercial cannabis licenses on September 1, 2021. By January 1, 2022, the department began awarding permits to qualified commercial cannabis businesses and marijuana-related training and education programs. Then, retail marijuana sales began on April 1, 2022.
The Program does not impose a cap on the number of business licenses that can be issued or on the number of facilities a licensee can open. However, if the advisory committee concludes that “the market balance is flawed,” regulators may stop awarding new licenses.
For every cannabis purchase, customers are subject to an additional 12% excise tax on top of the state’s standard sales tax of 8%. The excise tax rate is set to increase by one percent annually starting in 2025 until it reaches 18 percent in 2030. However, medical marijuana items, which are only accessible to patients and caregivers, are exempt from the tax.
Legislation too Develop provisions to ensure that medical patients They can continue to get their medication once the adult use market begins. The legislation enables the state to mandate licensed cannabis producers to allocate up to 10 percent of their supply to patients in case of scarcity or to grow additional plants for use in medical products.
Legalizing cannabis was part of Lujan Grisham’s legislative agenda for 2021, and she has repeatedly highlighted the importance of legalization as a strategy for boosting the economy, especially in light of the COVID-19 pandemic. In January’s State of the State address, she said, “It could be a crisis like the one we faced last year It is seen as a setback Or as an opportunity to revisit the current system – to be ambitious, creative and bold. “
During the special session, another supplemental bill, which overturned convictions made legal under the Marijuana Legalization Act, was passed and signed into law by the governor. According to the bill, courts reopen eligible cases within 30 days after the law was enacted.
Increased acceptance of adult cannabis use
In recent months, officials from other states have also been touting marijuana sales, as in neighboring Arizona, where adult cannabis purchases in 2022 peaked at a year-end total of $1.4 billion. Massachusetts Entertainment Market achieved official sales totals of more than $4 billion in January, after launching in 2018.
On the other hand, a prominent senator from Wisconsin released a legislative analysis that revealed a significant amount of money the state lost compared to Illinois last year. The investigation revealed that Wisconsin residents, who lack an organized market of their own, spent more than $121 million on marijuana by crossing the border.
New Mexico lawmakers recently passed a bill creating a state organization to examine the feasibility of starting a psilocybin treatment program. This would be for people with certain mental health conditions who may experience benefits from using the substance.
New Mexico Gov. Michelle Logan Grisham was excited to celebrate the market’s one-year anniversary of adult use of marijuana. The cannabis sector has generated hundreds of millions of dollars in economic activity for towns statewide, with sales exceeding $300 million and the creation of many jobs.
The market success also brought the state nearly $27 million in tax income. Regulatory and Licensing Supervisor Linda Trujillo is hopeful that the sector will grow in the second year. This achievement is a testament to New Mexico’s innovative and safe adult-use cannabis industry. It is a promising sign of increasing acceptance of adult cannabis use across the United States.
With the legalization of cannabis and the exploration of new therapies, such as psilocybin, New Mexico continues to demonstrate its commitment to ambitious, creative, and bold solutions that benefit its citizens.