New Mexico’s highest court declined to hear an appeal regarding whether medical marijuana producers are subject to the state’s gross receipts tax, meaning MMJ businesses in the state will be able to claim a significant tax break.
In February 2020, New Mexico’s Court of Appeals ruled in favor of a medical cannabis provider seeking a refund of gross receipts taxes, finding that MMJ qualified as a prescription drug under the state’s tax rules.
But the New Mexico Supreme Court quashed its review of the case on Wednesday, days before oral arguments were set to begin, the Associated Press reported.
In a news release, New Mexico cannabis company Ultra Health said it expects to receive a $7.4 million refund from the state for gross receipt taxes on medical marijuana.
The 2020 appeal case was filed against the state’s Taxation and Revenue Department by New Mexico MMJ company Sacred Garden, according to a copy of the appeals court’s ruling posted online by Ultra Health.
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The state revenue department then appealed that decision to the New Mexico Supreme Court.
“We respect the decision and will move forward to issue refunds to the affected taxpayers once the court’s decision is mandated to become final,” a Taxation and Revenue Department spokesperson told the Associated Press.