Summary
Highlights
New Mexico, with a smaller population base than Colorado, would likely see lower tax revenues even with fully legalized recreational marijuana, estimated at $25-27 million annually. The current medical marijuana market is lucrative, with existing contractors earning $7.4 million in three months. The state has also increased plant allowances and patient eligibility, indicating growth in this sector, though full legalization remains a longer shot.
Efforts by city councilors to decriminalize small amounts of marijuana, following Santa Fe's example, are seen as steps toward broader legalization. While some view these local ordinances as distractions due to conflicts with state law, public support for decriminalization is significant among voters. The political challenge lies in the partisan nature of putting such issues on the ballot, as it can be a mobilizing factor for certain demographics and impact elections.
New Mexico's medical marijuana licensing process is shrouded in secrecy, unlike Colorado's recreational marijuana market. Journalist Peter St. Cyr uncovered information about license applicants, which the Department of Health had not made public, raising questions about transparency, especially since these are state contractors.
The application fee of $10,000, with a $9,000 refund if unsuccessful, and an annual $30,000 license fee, raises concerns that only wealthier individuals or entities can enter the medical marijuana market. While Colorado has seen significant returns, New Mexico's market is currently dominated by local groups, though large out-of-state money is expected if the market expands.