New Mexico Supreme Court Determines Medical Cannabis Purchases Are Not Subject to Tax.
The New Mexico Supreme Court has determined that medical cannabis purchases should be treated like any other medication and not have been subject to New Mexico Gross Receipts Tax. Ultra Health, a New Mexico cannabis company, submitted an Amicus Brief to the New Mexico Supreme Court last year to demonstrate the legal basis for medical cannabis to be untaxed exactly like any other prescription in the state.
Marijuana is an effective treatment for various medical conditions, yet it is still classified as a Schedule I drug at the federal level. This means that it is considered to have no medicinal value and is therefore illegal to possess or use under federal law. However, individual states are allowed to create their laws regarding marijuana use, and many have done so.
Thirty-three states and the District of Columbia have now legalized marijuana for medical purposes, and ten states and D.C. have legalized it for recreational use. New Mexico is one of the states that has legalized marijuana for medical use, and its laws are very similar to those in California, which was the first state to legalize medical cannabis back in 1996.
Under New Mexico law, patients with qualifying conditions can purchase medical cannabis from a licensed dispensary. There is no tax on weed in New Mexico, as it is considered to be an essential medication. This is because taxing medication would create an undue burden on patients, many of whom are low-income or disabled.
Patients who purchase medical cannabis are not breaking federal law.
Medical cannabis is still illegal under federal law, but the federal government has taken a hands-off approach to states that have legalized it. This means that patients who purchase medical cannabis are not breaking federal law, and businesses that sell it are not subject to federal prosecution.
This hands-off approach was reiterated in an October 2018 memo from the Department of Justice. The memo stated that the DOJ would not prosecute marijuana businesses or patients if they followed state law. This memo is important, as it provides some certainty for businesses and patients operating in states where marijuana is legal.
Medical cannabis is a safe and effective treatment for many medical conditions, and it should be treated like any other medication. There is no tax on weed in New Mexico, as it is considered to be an essential medication. This is because taxing medication would create an undue burden on patients, many of whom are low-income or disabled.