Where can a cannabis retail establishment be located?
Cannabis retail sales are allowed to be located within 300 feet of a lot containing a residential use in a Mixed-use zone district with a Conditional Use Approval. Recent amendments now prohibit the establishment of cannabis retail outlets on lots adjacent to a Main Street corridor, group homes, and religious institutions. On-site consumption is also not permitted on lots adjacent to a Main Street corridor.
Additionally, municipalities and counties can set rules governing the time, location, and operations of cannabis businesses, including restrictions on license density and operating hours to align with neighborhood needs.
Whom can New Mexico cannabis retailers sell to?
Licensed adult-use cannabis retailers may sell cannabis to adults aged 21 and older, with a valid government-issued identification card, and employees are required to check purchasers’ IDs before making the sale.
What products can a New Mexico marijuana retailer sell?
Marijuana stores may sell cannabis, cannabis resin, cannabis products, cannabis edibles, cannabis extracts, seedlings, immature marijuana plants, and marijuana paraphernalia.
Can medical marijuana and recreational cannabis be sold in the same dispensary?
Yes, medical marijuana dispensaries that obtain a recreational marijuana dispensary license could operate both entities in the same/shared location.
What taxes are collected on retail cannabis in New Mexico?
New Mexico levies a 12 percent excise tax on cannabis sales that is paid by consumers and remitted by retailers. Other useful tax information include:
- The 12% excise tax will increase by one percentage point per year, maxing out at 18% on July 1, 2030. The tax does not apply to any sales to registered patients, caregivers, or visiting patients from other states.
- One-third of the cannabis excise tax revenue will go to the municipality where the sales were made. Another third of the cannabis excise tax revenue will go to the county where the sales were made.
- Gross receipts taxes — which range from 5.125% to 8.8125%, depending on the location in the state — would apply to adult-use, but not medical, cannabis.
For more information, applicants can refer to the FYI-260 document which goes over tax obligations of operating a cannabis business in the state of New Mexico.
How many cannabis business licenses will be issued in New Mexico?
There is no set limit on the number of business licensees that could be granted under the program, or the number of facilities a licensee could open. That said, regulators could stop issuing new licenses if an advisory committee determines that “market equilibrium is deficient.”
What are the packing and labeling requirements for a cannabis retail store in New Mexico?
The Cannabis Control Division has established and updated rules that govern all labeling and packaging activities for cannabis retail stores in New Mexico. These packing and labeling requirements are laid out in section N.M. Code R. § 7.34.4.16 of the New Mexico Administrative Code.
As of early 2024, the latest key highlights from the document are:
- Packaging and labels must not be designed to appeal to children or be targeted towards minors.
- Labels must include detailed information such as the strain name, manufacture and expiration dates, cannabinoid content, total weight, batch information, and names of entities involved in production.
- Warnings must be included on possible adverse events including for THC consumption during pregnancy or breastfeeding, driving under the influence, and vaping risks. The number for New Mexico’s poison control must also be present on the label.
- Drug information sheets must accompany each product sold or distributed, containing batch information, pesticide use, cannabinoid content, storage instructions, product ingredients, and allergy warnings.
- Expiration dates on product labels must not be altered or obscured, and expired products must be wasted and deducted from inventory.
- Non-compliance with packaging or labeling requirements may result in suspension of sales, product recall, relabeling orders, or disciplinary action by the department.
What are the marketing and advertising restrictions on cannabis sales in New Mexico?
The marketing and advertising restrictions and required practices are laid out in section N.M. Code R. § 16.8.3.8 of the New Mexico Administrative Code.
Here are the key highlights from the document:
- Advertising is banned on TV, radio, and mass transit, and to adults who have not opted-in or who subscribed to subscription-based media.
- Advertising cannot use predatory marketing targeting minors, use cartoon characters, or mimic other brands.
- Advertisements are limited to areas where at least 70% of the audience is 21 years or older.
- Any public advertisement must include the statement “Please Consume Responsibly”.
- Advertisements must not be deceptive, misleading, or false, this includes unsubstantiated health benefit claims.
- Advertisements must not promote overconsumption or depict actual consumption of cannabis products.
- Branding is not considered marketing or advertising, and is thus exempt from required warnings and statements for advertising. However, it still must not appeal to children or be otherwise targeted at minors.
Is cannabis delivery allowed in New Mexico?
Yes, cannabis delivery is allowed but only between 7 am and 10 pm, timings that coincide with cannabis retail sales inside a dispensary as well.
