New Mexico court allows medical marijuana tax deduction

New Mexico

SANTA FE, N.M. (AP) — A Court of Appeals in New Mexico has unanimously ruled that state medical marijuana producers can claim a tax deduction for prescription medication, a move that could affect prices for thousands of enrolled patients.

Albuquerque Journal reported that the ruling means lawmakers must soon set aside funding to cover the tax claims, which could carry a multimillion-dollar price tag for the state Taxation and Revenue Department.

Tax department officials say the agency has reviewed the ruling and is weighing legal options.

The department has until Feb. 27 to appeal the ruling.

Court officials say medical marijuana meets the definition of a prescription drug under the state’s tax code.

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