New Mexico governor Michelle Lujan Grisham signed a bill on Monday legalizing a potential $ 425 million adult marijuana market in the state.
Retail sales are scheduled to begin on April 1, 2022 at the latest.
New Mexico law reflects the national trend of emphasizing small businesses and social justice.
The legislature recently passed the law during a two-day special session of the legislature.
Lujan Grisham called for the special session after legislation stalled during the regular session.
The newly published Marijuana Business Factbook 2021 predicts a recreational market in New Mexico will have sales of $ 150 million for the first full year and annual sales of $ 425 million for the fourth year.
This was a slight increase from the original projections of $ 125 million annually for the first year and $ 350 million annually for the fourth year.
House member Javier Martinez, a Democrat from Albuquerque and one of the sponsors of the law, said during the special session that the measure will provide opportunities for small businesses, as well as allowing them to achieve vertical integration.
“We want to make sure that we don’t just create an industry for the rich,” he said.
Other elements of the bill for adult use are:
- A 12% excise tax on retail sales of marijuana products, in addition to local and state sales taxes of between 5% and 9%. The excise duty would increase to 18% over time.
- A requirement for the state to create rules that guarantee the variety of licenses.
- A provision that allows municipalities to restrict adult operations, but not entirely to decide against it.
- A mechanism for Native American communities to participate in the recreational market through agreements with regulators.
A summary of the Marijuana Policy Project’s bill can be found here.