The Taxation and Revenue Department this summer began contacting cannabis retail license holders who had failed to file one or more tax returns since registering with the Department. Adult-use cannabis sales are subject to both Gross Receipts Tax (GRT) and Cannabis Excise Tax, and retailers must be in good standing with taxes to renew their licenses with the Regulation and Licensing Department.
Since the effort began, 80 retailers have come into compliance with their tax filings.
The Department works closely with the Regulation and Licensing Department to compare active cannabis license holders with other data sources to ensure compliance.
More than 100 license holders have not yet complied, though in some cases, one operator may hold multiple licenses for different locations. Tax and Rev is working with the Regulation and Licensing Department to confirm which license holders are actually operating, and both agencies may perform in-person compliance checks.
“Cannabis is a relatively new industry with many new players who may be struggling to get their businesses up and running,” said Taxation and Revenue Secretary Stephanie Schardin Clarke. “We are here to assist taxpayers to voluntarily comply with the tax law, but cannabis retailers must also make a good faith effort to comply.” Once cannabis businesses are registered with the Department, they are required to file GRT and cannabis excise tax returns, even if they have no sales. Taxation and Revenue is committed to helping taxpayers come into compliance. That can include offering managed audits, a voluntary program to help taxpayers resolve tax debts, and payment plans.
Source: newmexico.gov