Mar 13,2020

New Mexico authorities are asking the state's Supreme Court to identify if medical marijuana items are exempt from gross receipts tax, like prescription medicines. On Monday, the state Attorney General's office submitted a request with the court in behalf of the state Taxation and Revenue Department requesting for explanation on the concern.

 

New Mexico is one of 33 states (plus D.C.) that have actually eliminated criminal penalties for the medical use of marijuana. In June 2019, the New Mexico Department of Health and wellness added six new certifying conditions (opioid usage disorder, autism range disorder, Alzheimer's condition, Friedreich's Ataxia, Lewy Body Disease, and spinal muscle atrophy) to the state's clinical cannabis program, increasing the complete number of qualifying conditions to 28.

 

The declaring originates from a 2014 case when accredited medical marijuana producer Sacred Garden asked the tax department for a reimbursement on the gross invoices tax the firm paid that year. That request was denied by the company but the state Court of Appeals regulation in favor of the cannabis firm, determining that clinical marijuana gets the same tax exception as prescription drugs, the record states.

 

In January, the state Court of Appeals ruled that a physician's recommendation to use cannabis is essentially the same as a typical prescription drug. The court also said that when the Legislature was taking into consideration the clinical marijuana legislation, state experts did rule out tax obligation revenues from clinical cannabis sales as well as, consequently, meant it to be tax-deductible, according to the record.

 

Complying With the January Appeals Court judgment, a number of marijuana dispensaries in the state introduced they would no more charge taxes. If the High court sides with Spiritual Yard, they would certainly be required to repay about $24 million in tax earnings paid by the state's clinical cannabis manufacturers.




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