The city of Las Cruces hosted an interactive town hall on Thursday to gather public opinion on how to manage the adult cannabis industry within the city limits.
With the passage of the New Mexico Cannabis Regulation Act, the city of Las Cruces is now focused on how best to manage its relationship with the adult cannabis industry and is hosting an interactive town hall to discuss zoning and other proposed regulatory actions.
Las Cruces Assistant City Manager Ikani Taumoepeau stated that New Mexico cities don’t have the same type of control that other states like California have given local governments in the past.
“The city councils had the opportunity to opt out, they could ban recreational cannabis completely in the city,” said Taumoepeau. “Here in New Mexico, this is happening after this was approved by the state earlier this year … the city councils don’t have the local autonomy we saw in California or even Colorado.”
Although the law does not allow a ban on adult cannabis, both municipalities and counties have limited control – including the implementation of “rules that reasonably limit license density and operating hours consistent with use in the neighborhood”.
Taumoepeau also says the city will receive revenue from both a cannabis excise tax and a gross income tax. He highlighted how the excise tax will affect the city of Las Cruces.
“There is a consumption tax built into state law that allows 12% before 2024,” said Taumoepeau. “And of that 12%, 33% of this excise tax goes back to the city of Las Cruces. 33% of this 12% correspond to 4%. 4% is essentially what the city would get. “
That 4% will grow over the next few years – by 2030, the city of Las Cruces is expected to receive around 6% of the consumption tax.
The Las Cruces City Council will decide what to do with the additional tax revenue. While it’s too early to know how the funds will be distributed, Councilor Gabe Vasquez made some suggestions during the council meeting.
“The city council will decide in the future what we do with this tax,” said Vasquez. “Whether we’re reinvesting that money in schools, drug rehabilitation, public safety, a number of problems, even housing, we can do a lot with the revenues we generate from this new industry.”
Vasquez says the city will continue to solicit public opinion on the use of cannabis tax revenue, adding that adult use of cannabis will help diversify Las Cruces’ economy.
“As a city, we have the ability to regulate various things such as zoning, operating hours and indoor and outdoor consumption or smoking,” said Vasquez. “This is a whole new industry for the city of Las Cruces and for all of New Mexico. When we talk about diversifying our economy, I personally believe that this is one of the ways to do it. “
City officials currently recommend a distance of at least 300 meters between cannabis companies, although special use permits can be requested by a company that wishes to break this rule.
The caveat is something that Chad Lozano, the former secretary of the New Mexico Medical Cannabis Patients Advocacy Alliance, disagrees with. Lozano said at the meeting that, in his opinion, there should be no limit to how closely companies can work together.
“There are bars that are right next to each other, I don’t see why we shouldn’t do that with cannabis,” said Lozano. “We have little space. We’re not as big as other cities. I think, you know, if they want to be next door, they should be allowed to. “
Councilor Gabe Vasquez says the number is not set in stone as it has yet to be approved by the city council.
“In my opinion, we have very limited retail opportunities, or at least a more limited, smaller square footprint,” said Vasquez. “If you think it should be 500 feet, 600 feet for the economic opportunity and for more small businesses within a reasonable distance, please make this public comment.”
Another town hall on this subject is planned for Thursday, August 12th. Residents wishing to provide public feedback can complete the Las Cruces city cannabis survey before it closes on August 15th.