If cannabis is medicine, shouldn\u2019t it receive the same subsidies, kickbacks, and tax breaks as any other pharmaceutical? According to a new court ruling in New Mexico, yes, it should.<\/p>\n
On Friday, a state Court of Appeals ruled<\/u><\/a> that medical cannabis producers qualify for tax deductions for manufacturing weed products under state law. The case stemmed from a lawsuit filed by Sacred Garden, a Santa Fe-based medical cannabis company that produces infused products, extracts, and flower. Sacred Garden claimed tax deductions for its overhead costs \u2014 a standard practice in every US business except those handling marijuana \u2014 but was initially denied those deductions by New Mexico\u2019s Taxation and Revenue Department.<\/p>\n However, the court ruled against the state due to a clause in the Lynn and Erin Compassionate Use Act<\/u><\/a>, the law that legalized New Mexico\u2019s medical marijuana program in 2007. The law states, \u201cA licensed producer shall not be subject to arrest, prosecution <\/strong>or penalty, in any manner<\/strong><\/em>, for the production, possession, distribution, or dispensing of cannabis pursuant to the Lynn and Erin Compassionate Use Act\u201d [emphasis ours]. The court interpreted denying tax refunds to state-compliant cannabis producers as an unlawful penalty, though the state can appeal by February 27.<\/p>\n