As the specter of more tax hikes looms, Anthony Luna did some grim arithmetic and articulated the dilemma he said he and other owners of cannabis dispensaries face: Drop prices on prerolled joints and other retail items or pass on the cost to consumers.
Members of New Mexico’s state-regulated recreational marijuana industry are warning about the far-reaching impacts of the 1% increase in the state’s cannabis excise tax rate that took effect on July 1, bringing it to 13%. It is a new pain retailers will face each July for the next five years.
“It’s a really tough battle,” said Luna, the owner of Luna Leaf Dispensary, which has two locations in Albuquerque. “A lot of [losses], and no wins in sight.”