Tax deduction on medical marijuana in New Mexico
State medical marijuana producers can claim a tax deduction for prescription medication
Medical marijuana producers in New Mexico are now able to claim a tax deduction for prescription medication. This move that could affect the prices for 80,000 or so enrolled patients as well as the state budget itself, according to a state Court of Appeals ruling.
In a three-year period, medical marijuana providers paid about $24 million in gross receipt taxes. Although these taxes are paid by providers, most of the time they are usually passed on to patients. These patients can now start benefiting with drops in prices for their purchased products.
Lawmakers must soon set aside funding to cover the tax claims, which could carry a multimillion-dollar price tag for the state Taxation and Revenue Department, Albuquerque Journal reported.
Duke Rodriguez, president and CEO of Ultra Health LLC, one of the state’s largest licensed medical cannabis producers, said tax claims could range from several hundred thousand dollars to several million dollars, depending on the producer. Rodriguez commented in his interview that in his opinion this is “good news, because we should never tax food or medicine.”
The agency has reviewed the ruling and is weighing legal options, tax department officials said on Friday. The department has until the 27th of February to appeal the ruling.
This ruling could bring about a lot of other implications and raised questions. The first being medical cannabis costs covered either by private insurance companies or Medicaid. Candelaria suggested that this ruling could also affect workplace policies on medical cannabis use. In addition, the ruling could give inmates and parolees who are enrolled medical cannabis patients the right to use marijuana, just like other prescription medications.
About Medical Cannabiz World:
In November 2019, Medical Cannabiz World opened its doors to the medicinal cannabis industry, supported by the Maltese government’s commitment to legislation for this high growth sector. Medical Cannabiz World summit 2020 will focus on the Malta medical cannabis industry as well as global opportunities in the sector, attracting investors, medical researchers, policy makers and entrepreneurs looking to forge exciting new opportunities.