City of Carlsbad receives revenue from growing cannabis business

The City of Carlsbad received $32,000 in cannabis tax revenues collected by the State of New Mexico in April.

Recreational cannabis sales in New Mexico started April 1. New Mexico Taxation and Revenue Department (TRD) collected $1.65 in sales taxes from cannabis business across New Mexico that month.

Collections were distributed in early June.

According to data from the TRD, revenue received by the City of Carlsbad outpaced those received by larger communities like Rio Rancho, Farmington and Clovis.

More:City of Carlsbad among New Mexico's top selling cannabis communities despite sales dip

TRD distributed $46,000 to the City of Sunland Park located near El Paso. Sale and possession of recreational cannabis is not allowed in Texas cities like El Paso.

Albuquerque received the most in disbursements: $282,000. Las Cruces was second at $85,000 and Santa Fe was third at $45,000.

In southeast New Mexico, Hobbs received $52,000 in cannabis tax receipts.

TRD handed out $20,000 in tax disbursements to the Village of Ruidoso and $18,000 to the City of Alamogordo.

“Consumers and entrepreneurs are excited about adult-use recreational cannabis in New Mexico. The numbers from the first two months of sales have proven this,” said Matt Kennicott of the Weeds cannabis consulting firm in Albuquerque.

He said there is a shortage of cannabis products in the market right now, limiting choices for consumers.

“But this will change, and the market will continue to produce more unique products as businesses come online, keeping the interests of consumers,” he said.

More:Cannabis business interest grows as State issues licenses in Eddy County

Cannabis interest grows in Carlsbad and Eddy County

As of Tuesday, the State of New Mexico approved six additional cannabis licenses in Carlsbad.

Three licenses were issued for retail outlets in the City of Carlsbad.

One manufacturer license, one cannabis producer microbusiness license and one producer license was issued, per Cannabis Control Division (CCD) data.

More:Demand for recreational cannabis permits low for Eddy County's unincorporated locations

CCD is under the control of the New Mexico Regulation and Licensing Department and two applications were in the draft stage. One for a retail business and another for a microbusiness.

“The state licensing process is one that takes careful planning and paying close attention to detail,” Kennicott said.

“Potential licensees will need to submit background check documents as one of the first steps in the process. Operators must also provide proof of the right to use their proposed water source, a social equity plan, a water and energy use plan, and other important documents,” he said.

Kennicott said the state reviews each application for completeness and other criteria and a license is granted.

"If not, then additional documentation may be needed. In some cases, there is also a county or municipal process that a potential licensee may have to endure before becoming fully licensed,” he said.

The Village of Loving had one license approved for a cannabis producer microbusiness. CCD received a draft license for another microbusiness in Loving.

The City of Artesia had three drafts waiting for CCD approval and an application for a microbusiness was under review, according to CCD’s website.

CCD had not received any cannabis license applications from the far northern Eddy County Village of Hope.

More:Cannabis retailers will sort out supply and demand but water will be tricky

“The potential for cannabis businesses to thrive is very real all across New Mexico. People questioned the movie industry coming to the state, saying it wouldn't work. But they're here to stay and many other businesses have thrived in support of the industry,” Kennicott said.

“The same opportunities are already popping up, with businesses that support the cannabis industry spreading quickly. Consumers are also excited to finally be able to have a legal market where stigmas are quickly being broken,” he said.

Mike Smith can be reached at 575-628-5546 or by email at MSmith@currentargus.com or @ArgusMichae on Twitter. 

This article originally appeared on Carlsbad Current-Argus: Carlsbad receives $32K in recreational cannabis sales tax revenue