New Mexico, population 2.1 million, exceeds $300 million in first-year recreational cannabis sales?

The governor celebrates the one year anniversary of the New Mexico adult marijuana market. She highlights the state’s impressive sales of over $300 million since April of last year and the numerous job opportunities the cannabis industry has created.

On Monday, Gov. Michelle Lujan Grisham (D) reported that recreational marijuana sales have been flat 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 generated by the adult market, New Mexico also recorded approximately $187.4 million in medicinal cannabis sales last year, bringing the total to $488.3 million -dollar brings.

The governor explained in a press release that the cannabis industry generated hundreds of millions of dollars in economic activity for communities across the state in one year. In addition, the number of companies in the industry is growing and employing thousands of New Mexicans. The Governor expressed his excitement for the future of the innovative and safe cannabis industry for adult use.

Since marijuana stores opened in the state, New Mexico has amassed over $27 million in tax revenue from the sale of adult-use cannabis, benefiting both communities and the general government fund. In addition, the governor emphasized that the sales resulted from over 10 million transactions made during the year.

Linda Trujillo, Superintendent of the Regulatory and Licensing Department, stated that the cannabis industry in New Mexico has shown remarkable potential. Starting with the governor signing the bill into law through establishing the Cannabis Control Division and implementing the new industry. She expressed optimism for further expansion in the second year.

It was not disclosed if Lujan Grisham made any purchases on the market during the first year. However, on a previous visit to a cannabis retailer on an opening day last year, she didn’t rule out the possibility.

Road to legalizing cannabis in New Mexico

New Mexico’s new cannabis legalization law went into effect in June 2021, allowing individuals ages 21 and older to possess and grow limited amounts of cannabis for personal use. The law permits possession of up to two ounces of marijuana and 16 grams of concentrates, and the cultivation of up to six mature plants.

The Cannabis Control Division, which reports to the State Department of Regulation and Licensing, has followed its schedule to the letter. The department established an advisory committee and began accepting certain cannabis business licenses on September 1, 2021. On January 1, 2022, the department began issuing licenses to eligible commercial cannabis companies and licensed marijuana-related training and education programs. Thereafter, retail sales of marijuana began on April 1, 2022.

The Program does not impose a specific limit on the number of business licenses that can be issued or the number of facilities a licensee can open. However, if the Advisory Committee concludes that “the market balance is insufficient,” regulators may stop issuing new licenses.

For every purchase of cannabis, customers are subject to an additional 12% consumption tax in addition to the standard 8% state sales tax. The consumption tax rate is to increase by one percent annually from 2025 until it reaches 18 percent in 2030. However, medical marijuana items accessible only to patients and caregivers are exempt from the tax.

The legislation also included provisions to ensure medical patients could continue to receive their medicines once the market for adult use begins. The law allows the state to require licensed cannabis producers to provide up to 10 percent of their supplies to patients or grow additional plants for use in medicinal products in the event of a shortage.

Cannabis legalization was part of Lujan Grisham’s legislative agenda for 2021, and she frequently emphasized the importance of legalization as a strategy to boost the economy, especially in light of the COVID-19 pandemic. In a State of State address in January, she said: “A crisis like the one we faced last year can be seen either as a setback or as an opportunity to rethink the current system – to be ambitious, imaginative and daring. “

During the special session, another amendment was also passed and signed by the governor, which would vacate convictions that have become final under the Marijuana Legalization Act. According to the bill, the courts reopened admissible cases within 30 days of the law’s entry into force.

Increased adult acceptance of cannabis

In recent months, officials from other states have also encouraged marijuana sales, such as in neighboring Arizona, where purchases of adult-use cannabis totaled $1.4 billion in 2022. The Massachusetts leisure market had official total sales of over $4 billion in January after its launch in 2018.

On the other hand, a top Wisconsin senator released a legislative analysis that showed how much money the state lost compared to Illinois over the past year. The investigation found that Wisconsin residents who did not have their own regulated market spent over $121 million on marijuana crossing the border.

The New Mexico legislature recently passed legislation creating a state organization to study the feasibility of introducing a psilocybin therapy program. This applies to individuals with certain mental illnesses who may benefit from using the psychedelic substance.

Diploma

New Mexico Gov. Michelle Lujan Grisham was thrilled to celebrate the one year anniversary of the adult marijuana market. The cannabis sector has spawned hundreds of millions of dollars in economic activity for cities across the state, generating over $300 million in revenue and creating numerous job opportunities.

In addition, the market’s success has generated approximately $27 million in tax revenue for the state. Superintendent of the Regulations and Licensing Division, Linda Trujillo, expressed her hope for the growth of the sector in the second year. This achievement is a testament to New Mexico’s innovative and safe cannabis industry for adult use. This is a promising sign of the growing acceptance of adult-use cannabis in the United States.

With the legalization of cannabis and research into new therapies like psilocybin, New Mexico continues to demonstrate its commitment to ambitious, imaginative and daring solutions that benefit its citizens.

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