The New Mexico Supreme Court has let stand a lower court ruling that found cannabis purchases by medical marijuana patients should not be subject to gross receipts tax.
The Supreme Court issued its order Wednesday, just days before parties in the case were scheduled to present arguments.
The case stemmed from requests for tax refunds by producers in 2014 and again in 2018. The state Taxation and Revenue Department had denied those claims. In 2020, the New Mexico Court of Appeals ruled that medical marijuana should be treated like other prescriptions, which are not taxed.
Appellate Court Judge M. Monica Zamora had stated in the opinion at the time that New Mexico’s Compassionate Use Act was intended to make medical marijuana accessible to those with debilitating conditions.
“It is reasonably self-evident that the deduction from gross receipts for prescription drugs was similarly intended to make medical treatment more accessible, by lessening the expense to those who require it,” she wrote. “These statutes should be read harmoniously, to give effect to their commonality of purpose.”
The Taxation and Revenue Department said it was disappointed with the Supreme Court’s decision to quash its review of the case. [Read more at Las Cruces Sun News]