The first excise tax filings and payments are due Wednesday for sales made through the month of April, according to a news release from the New Mexico Taxation and Revenue Department.
Businesses that have retail sales for adult-use cannabis are subject to the cannabis excise tax and must register to pay Gross Receipts Tax on their sales.
“Gross Receipts Tax should be figured on the total sales price, including the excise tax amount,” the release said. “For example, a retailer in Albuquerque who sells $100 of adult use cannabis would pay 12% in excise tax on that sale. Then, when determining the Gross Receipts tax due, the retailer would apply the Albuquerque Gross Receipts Tax rate — currently 7.875% — on $112 (sale price +excise tax) to come up with gross receipts tax due of $8.82. The same sale in the city of Santa Fe would result in a gross receipts tax due of $9.45 ($112 x 8.4375%). In Las Cruces, it would result in a gross receipts tax due of $9.31 ($112 x 8.3125%). Gross Receipts tax rates are subject to change twice a year, on July 1 and January 1.”
Filings and payments should be submitted electronically. Taxpayers can pay online with Automated Clearing House debits, or a credit card, which is submitted to a 2.4% convenience fee, the release said.
Fedwire or ACH credit payments cannot be accepted for the Cannabis Excise Tax or the Gross Receipts Tax.
Those wishing to pay with a paper check or cash will need a waiver that can be found in the “E-File and E-Pay Exceptions” folder on the forms and publications page of tax.newmexico.gov.
The release added that tutorials on how to register for the Cannabis Excise Tax accounts are available on the department’s YouTube channel.
For more information visit ccd.rld.state.nm.us.