New Mexico Tax Department Pursues Over 100 Cannabis Firms for Delinquent Taxes

LOS ANGELES- The New Mexico Department of Taxation and Revenue announced an enforcement drive on Wednesday, highlighting that over 100 cannabis license holders in the state have failed to meet their tax obligations.

According to a recent news release by the agency, 80 cannabis businesses settled their tax dues when contacted by the department over the summer. However, more than 100 still have pending bills. The state has emphasized the importance of tax compliance, especially since cannabis-related businesses must maintain a good tax standing to renew their state permits. This permit renewal process is supervised by the state’s Regulation and Licensing Department.

Stephanie Schardin Clarke, the Taxation and Revenue Secretary, commented on the situation, saying, “Cannabis is a relatively new industry with many new players who may be struggling to get their businesses up and running.” She further added that while the agency is dedicated to assisting taxpayers to adhere to tax laws voluntarily, it’s crucial for cannabis retailers to make sincere efforts to comply.

The Department of Taxation and Revenue has shown its willingness to support businesses that are having difficulty with their taxes. It offers “managed audits,” a program aimed at aiding taxpayers in settling tax debts, as well as payment plans for those needing them.

One of the key measures the Taxation and Revenue department is taking to ensure compliance is collaborating closely with the Regulation and Licensing Department. Their joint efforts involve comparing active cannabis license holders with other data sources to guarantee adherence to state regulations.

In instances where cannabis businesses continue to neglect their tax duties even after initial notifications, the agencies are considering more direct measures. The release hints at the potential for “in-person compliance checks” on these defaulting businesses.

The state’s focus on ensuring tax compliance in the cannabis sector isn’t without cause. To date, New Mexico has amassed over $47 million in cannabis taxes. This recent tax enforcement initiative follows the New Mexico Cannabis Control Division’s pledge earlier this year for tighter oversight. The division, a subset of the Regulation and Licensing Department, has since been proactive, carrying out numerous business site inspections