A possible bill for the upcoming legislative session would seek to curb New Mexico’s consistently high alcohol-related death rate by raising liquor taxes.
The proposal would impose surtaxes on spirits, beer and wine, and place the funds in a newly created Alcohol Harms Alleviation Fund.
An effort to impose a surtax on alcohol failed during the 2023 legislation session.
These surtaxes could be temporary depending on if the standardized alcohol-related mortality rate in New Mexico is lowered to less than 40 people per 100,000 for five years after the updates taxes and surtaxes are enacted as determined by the New Mexico Department of Health, the proposed legislation states.
These mortality rates would be determined by NMHealth.
If the condition was met, then the liquor taxes and surtaxes would no longer be imposed.
Alcohol Harms Alleviation Fund
The Alcohol Harms Alleviation Fund would be administered by the New Mexico Department of Finance and Administration.
The fund’s money would be subject to legislative appropriation for “alcohol harms prevention, treatment and recovery services to individuals throughout New Mexico, including on lands of Indian nations, tribes and pueblos, and to individuals harmed by a person in need of those services,” according to the proposal. It would prioritize community-based programs that address alcohol use and health disparities, the legislation states.
What the legislation proposes:
- The liquor excise tax on spirits made by a craft distiller below 10 percent alcohol by volume would be eight cents per liter for the first 250,000 liters sold, 28 cents per liter for the next 250,000 liters sold and $3.38 for each liter sold after.
- For products above 10 percent alcohol by volume the liquor excise tax would be 32 cents per liter on the first 175,000 liters sold, 65 cents per liter on the next 200,000 liters sold and $3.38 cents for each liter sold after, according to the proposed legislation.
- The liquor excise taxes for beers and ciders made by microbreweries or small winegrowers would be eight cents per gallon on the first 30,000 barrels sold, 28 cents per gallon for all barrels sold over 30,000 barrels but less than 60,000 barrels and 87 cents per gallons for all other beer and cider sold, according to the proposed legislation.
- The liquor excise tax on wine made by a small winegrower would be 10 cents per liter on the first 80,000 liters sold, 20 cents per liter for each liter sold over 80,000 liters but not over 950,000 liters and 30 cents for each liter sold over 950,000 liters and 95 cents per liter thereafter, the proposed legislation states.
- The liquor excise tax for fortified wine would be $3.17 per liter sold.
- The legislation proposed a liquor excise surtax would be imposed for sellers that are not microbreweries, craft distillers or small winegrowers. These surtaxes would be $4.51 per liter sold of spirits, $2.13 per gallon sold of beer, $1.35 per liter sold of wine and $1.93 center per liter sold of fortified wine, the proposed legislation states.
Legislation can be pre-filed between Jan. 2 and Jan. 17 for the 2025 Legislative Session.
The session begins at noon on Jan. 21.