While lawmakers in the state of New Mexico are likely to push to legalize weed, there are some steps to be taken first according to Duke Rodriguez, the president and chief executive officer of Ultra Health.
Speaking to a Revenue Stabilization and Tax Policy Committee during a Sept. 22 meeting, Rodriguez said it takes a minimum of four months to grow the cannabis and if the state does not soon begin ramping up production it will face shortages should the Legislature choose to legalize recreational cannabis and begin sales next year.
New Mexico will have to increase the amount of cannabis the 34 licensed producers are permitted to grow in preparation for the possible passage of the bill.
According to Rodriguez, Colorado has one million plants in cultivation. New Mexico currently has 29,000 plants that are used for the medical cannabis sector.
While Rodriguez does not think the state will see the same success that Colorado has seen, New Mexico could still support a cannabis market yielding $600 million in annual sales. With a 15% tax and $600 million in sales, New Mexico could see $90 million of new revenue that could go to the general fund.
Richard Anklam, the president and executive director of the New Mexico Tax Research Institute pointed out that California has been unsuccessful unlike
Colorado.
“They continue in this regard to be a poster child of how not to act,” he said of California. According to Anklam, the tax rates are too high, and these factors have led to large scale illegal growing of cannabis.
