New tax and fee changes will take effect in New Mexico starting July 1, as a result of scheduled updates, local actions, and recent legislation.
The cannabis excise tax, which has been at 12% since adult-use cannabis sales began in April 2022, is set to increase by 1% annually starting July 1, 2025. This will continue until the rate reaches 18% in July 2030.
Gross receipts and compensating tax rates will also see increases in certain areas due to actions by local governments and tribes. These areas include Roswell, Maxwell, Texico, Las Cruces, Santa Clara Pueblo and Land Grant, Elida, and Portales. New location codes have been established in Bernalillo and Dona Ana Counties. Taxpayers can refer to the gross receipts and compensating tax location code map for specific rates by location.
Several fees and surcharges will rise effective July 1 under Senate Bill 535. The worker’s compensation fee will increase from $2.30 to $2.55 for employers and from $2 to $2.25 for employees. Further increases are planned for July 2028 and July 2033.
The 911 emergency surcharge will be adjusted from $0.51 to $1 to support statewide emergency dispatch operations. Additionally, the telecommunication relay surcharge will rise from 0.33% to 1.36%, with revenue aiding the operation of the nationwide suicide prevention and mental health crisis line known as the "988" service.
For more details on legislative changes slated for 2025, interested parties are encouraged to visit the New Mexico Taxation and Revenue Department's YouTube channel or sign up for their Notification Service available on the News & Alerts page.
Information from this article can be found here.
