New Mexico cannabis business compliance guide

Market Type

In New Mexico, cannabis is regulated by the Cannabis Control Division (CCD). Medical and adult-use cannabis are allowed. New Mexico also allows out-of-state medical patients to purchase medical cannabis as long as they have proof of authorization to participate in the medical cannabis of another state and they register with the dispensary for the purpose of tracking sales in BioTrack. 

BioTrack & Inventory

New Mexico uses BioTrack as their seed-to-sale state traceability system. In New Mexico, medical and adult-use cannabis inventory do not share one inventory and instead are separated from each other.

Purchase Limits

Adult-use

A customer may purchase the following:

• Two [2] ounces of flower
• Sixteen [16] grams of extract
• Eight hundred [800] milligrams of edible cannabis; and
• Six [6] immature plants

Medical

A patient may purchase in a three month period no more than:

• 425 units of cannabis

Medical cannabis is defined in “units”, essentially creating a system of equivalence.

The following are considered a single unit:

• 1 gram of dried cannabis leaves/flowers
• 0.2 grams [200 milligrams] of THC in a cannabis derived product

Taxes

Adult-use

• Excise - 12% but increases over time and only applies to cannabis products

• prior to July 1, 2025, twelve percent;
• beginning July 1, 2025 and prior to July 1, 2026, thirteen percent;
• beginning July 1, 2026 and prior to July 1, 2027, fourteen percent;
• beginning July 1, 2027 and prior to July 1, 2028, fifteen percent;
• beginning July 1, 2028 and prior to July 1, 2029, sixteen percent;
• beginning July 1, 2029 and prior to July 1, 2030, seventeen percent; and
• beginning July 1, 2030, eighteen percent

• Gross Receipts Tax - Varies by municipality and applies to cannabis AND non-cannabis products

• compounding, applies to total sales price + excise tax

Medical

• No gross receipts tax or excise tax

Note: Gross Receipts Tax shall be determined by the store’s location for pickup/in store purchases but for deliveries, shall be determined by the customer’s location

NM Taxation Resources: Gross Receipts Tax Overview, Cannabis Excise Tax Overview, Information for the Cannabis Industry

Delivery

Retailers and courier licensees may transport cannabis to patients and consumers. 

Payment

• Delivery orders may be prepaid or payment may be received up until the point of delivery. However, orders must be pre-paid if using a courier to deliver as couriers may not be received by a cannabis courier

Delivery Operations

• Pre-verification of the consumer’s identity must be performed through an electronic means, including a third-party technology platform
• Cannabis shall only be delivered to a residential address 
• Maximum retail value of cannabis goods in a delivery vehicle may not exceed $10,000. Each product must be associated with an order
• For adult use delivery orders, gross receipts tax is determined by the customer’s location 

Things to Note

• Retailers may make their own prerolls and repack cannabis in store only if they have a vice/manufacturer’s license

State Resources

The CCD compiles their rules/regulations and compliance resources here