N.M. Stat. Ann. § 7-9-73.2
C. For the purposes of this section, "prescription drugs" means insulin and substances that are:
History: Laws 1998, ch. 95, § 2; Laws 1998, ch. 99, § 4; 2003, ch. 272, § 7; 2007, ch. 361, § 3; 2021 (1st S.S.), ch. 4, § 53; 2025, ch. 73, § 12; 2025, ch. 130, § 73.
2025 Multiple Amendments. — Laws 2025, ch. 73, § 12, effective June 20, 2025, and Laws 2025, ch. 130, § 73, effective July 1, 2025, enacted different amendments to this section that can be reconciled. Pursuant to 12-1-8 NMSA 1978, Laws 2025, ch. 130, § 73 as the last act signed by the governor is set out above and incorporates both amendments. The amendments enacted by Laws 2025, ch. 73, § 12 and Laws 2025, ch. 130, § 73 are described below. To view the session laws in their entirety, see the 2025 session laws on NMOneSource.com.
The nature of the difference between the amendments is that Section 7-9-73.2 NMSA 1978, as amended by Laws 2025, ch. 73, § 12, provided a gross receipts tax deduction for receipts from the sale of psilocybin products and medical care sold in accordance with the Medical Psilocybin Act, and Laws 2025, ch. 130, § 73, provided that a taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department, and provided that the deduction shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the deduction.
Laws 2025, ch. 130, § 73, effective July 1, 2025, provided that a taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department, and provided that the deduction shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the deduction; added new Subsection B and redesignated former Subsection B as Subsection C.
Laws 2025, ch. 73, § 12, effective June 20, 2025, provided a gross receipts tax deduction for receipts from the sale of psilocybin products and medical care sold in accordance with the Medical Psilocybin Act; in Subsection A, after "Lynn and Erin Compassionate Use Act" added "and psilocybin products and medical care that are sold in accordance with the Medical Psilocybin Act".
The 2021 (1st S.S.) amendment, effective June 29, 2021, provided a deduction from gross receipts for the sale of certain cannabis products; and in Subsection A, after "equipment provider", added "and cannabis products that are sold in accordance with the Lynn and Erin Compassionate Use Act".
The 2007 amendment, effective July 1, 2007, permitted a deduction for receipts from the sale of oxygen and oxygen services provided by a licensed medicare durable medical equipment provider.
The 2003 amendment, effective July 1, 2003, added the Subsection A designation and added Subsection B.
Medical marijuana deduction from gross receipts. — Where taxpayer, a licensed producer authorized to dispense medical marijuana to qualified patients consistent with the Compassionate Use Act, §§ 26-2B-1 through 26-2B-7 (2007, as amended through 2021) NMSA 1978, sought refunds of gross receipts taxes that it paid in association with sales of medical marijuana from 2011-2016, and where those claims were denied by the administrative hearing officer on the grounds that the medical marijuana it dispenses to qualified patients does not constitute a "prescription drug" for purposes of the statutory deduction set forth in this section, the hearing officer erred in denying taxpayer's request for gross receipt tax refunds, because medical marijuana dispensed pursuant to the Compassionate Use Act meets the criteria set forth in Subsection B of this section; taxpayer is a licensed producer under the Compassionate Use Act and is undisputedly authorized under state law to dispense medical marijuana, the use of the marijuana at issue in this case was authorized by and for specific persons in accordance with state law, and medical marijuana is subject to restrictions for sale insofar as the Compassionate Use Act provides for access only after the patient has been duly diagnosed with a debilitating medical condition and has received written certification from a licensed practitioner that, in the practitioner's professional opinion, the potential health benefits of medical marijuana would likely outweigh the health risks to the patient. Sacred Garden, Inc. v. N.M. Tax'n & Revenue Dep't, 2021-NMCA-038, cert. granted.