News
Alcohol excise tax stumbles
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By Robert Nott, The Santa Fe New Mexican
An effort to increase New Mexico’s alcohol excise tax for the first time in 30 years — a measure intended to help the state rein in a problem that takes the lives of more than six people a day — stumbled Monday when the House Taxation and Revenue Committee unanimously voted to table the bill. House Bill 230 calls for a flat 25-cent tax per serving, starting in July — a hefty change from tax rates that now range from a high of 15.5 cents for a serving of “fortified wine” to a low of 0.4 cents for a serving of spirits by a craft distiller that has sold less than 250,000 liters of booze. Most liquors are taxed at 7.1 cents per serving; wine at 6.7 cents and beer at 3.9 cents, according to state law. Advocates say the excise tax increase would lead to a drop in alcohol consumption and, therefore, save lives. The bill’s fiscal impact report, citing data from the New Mexico Department of Health, says 2,273 New Mexicans died from alcohol-related causes in 2021.