Glossary
Gross receipts tax (GRT)
New Mexico's sales-type tax on business receipts, state plus local rate by location code. Applies to cannabis retail; medical sales are deductible and reported separately (code D0-034).
Why it matters for reconciliation: tax is part of the ticket total, and a total that does not match the state receipt is often a tax-line problem. In New Mexico the rate depends on the location code, and medical sales are reported separately, so a single combined tax field in the POS will not line up.
Example: two stores in different municipalities sell the same product at the same shelf price. Their receipts differ in the gross receipts line because the local rates differ, and a medical sale at either store is reported under its own code instead of being mixed with adult-use sales.
Where this comes up on budally.com
Related terms
- Cannabis excise tax
A state tax on cannabis retail sales, separate from sales or gross receipts tax. Rates and bases vary: California 15% on retail; New Mexico 14% from July 1, 2026 rising to 18% by 2030; Michigan 10% retail excise plus, from January 2026, a 24% wholesale tax.
- Medical
Cannabis sold to registered patients, caregivers or reciprocal-card holders under a state medical program. Often tax-exempt or tax-reduced at the register; since April 2026 federally Schedule III and outside 280E when state-licensed.