Two New Mexico tribes have signed an agreement with the state allowing them to collect taxes on cannabis product sales, the Associated Press reports. The agreement between the state and Pojoaque and Picuris tribes, which are based in northern New Mexico, was signed last week.
Taxation and Revenue Department spokesman Charlie Moore told the AP that the agreement means the tribes can now sell cannabis products, but the state’s 12% tax won’t be levied on products sold by the tribes.
Taxation and Revenue Secretary Stephanie Schardin Clarke said the state “has a strong history of collaborating with tribes to efficiently administer taxes while recognizing tribal sovereignty and the limitations of state authority on tribal lands.”
In March, Gov. Michelle Lujan Grisham (D) signed an intergovernmental agreement with Picuris Gov. Craig Quanchello and Pueblo of Pojoaque Gov. Jenelle Roybal to set guidelines for the cannabis industry and allow tribal communities to participate in the industry “in ways that support community health and public safety while maximizing cross-jurisdiction market opportunities,” according to Lujan Grisham’s office in a press release.
Cannabis sales in New Mexico began in April and topped $22.1 million during the month. The state Cannabis Control Division (CCD) projects that adult-use cannabis sales will reach $300 million per year. Sales during New Mexico’s opening weekend surpassed $4.5 million with nearly 70% of sales derived from the adult-use market. State officials expect the industry to create 11,000 jobs in the state and bring in $50 million in state revenues during the first year.
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