New Mexico Sales Taxes—First New Mexico cannabis excise tax payments due May 25.
The first cannabis excise tax filings and payments are due by May 25, 2022. The New Mexico Taxation and Revenue Department began accepting registrations for the new tax on April 1. Taxpayers must be licensed by the Cannabis Control Division of the Regulation and Licensing Department before they can establish a cannabis excise tax account. Cannabis excise tax returns due on May 25 are for activity occurring in the month of April 2022. Businesses subject to the excise tax can register their accounts online using Taxation and Revenue’s Taxpayer Access Point (TAP) self-service portal. Businesses subject to the new cannabis excise Tax are those that have retail sales of adult-use cannabis. Those businesses must also register to pay gross receipts tax (GRT) on their sales. Gross receipts tax should be figured on the total sales price, including the excise tax amount. Businesses already registered for GRT may use their existing accounts to pay GRT on adult-use cannabis sales, but they must also have a cannabis excise tax account. Medical cannabis sales are not subject to the new cannabis excise tax, and medical cannabis sales are also deductible from GRT. Medical cannabis providers still need to file GRT returns, but they will be able to deduct their medical cannabis receipts. Filing and payment should be submitted electronically through the TAP self-service portal. Taxpayers are required to use either ACH debit (echecks) or a credit card to make payments. Credit card payments are subject to a 2.4% convenience fee. Fedwire and ACH Credit payments cannot be accepted for the cannabis excise tax or the gross receipts tax on cannabis retail sales. Anyone needing to pay with a paper check or cash must have a waiver. Waiver forms are available in the “E-File and E-Pay Exceptions” folder on the Forms & Publications page of Taxation and Revenue’s web site. (News release, N.M. Tax. and Rev. Dept., 05/05/2022.)
New Mexico Sales Taxes—First New Mexico cannabis excise tax payments due May 25