REMOVE CANNABIS TAX INCREMENTAL INCREASES

SB 89 would freeze New Mexico's recreational cannabis sales tax at 12% after July 1, 2025, preventing scheduled annual increases that would have raised the rate to 18% by 2030. It directly affects cannabis retailers selling recreational products, while maintaining the existing exemption for medical cannabis sales (requiring a registry card). The bill amends the tax code to remove the incremental rate increases from the current schedule, keeping tax rates stable for businesses. This is a policy change to the tax structure, not a new tax.