New Mexico Information
Tobacco Taxes
New Mexico's excise tax per pack of cigarettes: $0.910
New Mexico's excise tax collection for the
fiscal year ending June 2002: $20,051,000
Sales tax on tobacco products: 5.00%
Federal excise tax per pack of cigarettes: $0.39
Total federal excise tax collections in fiscal year 2002: $7,512,700,000
|
Who Profits from
Cigarette Sales? 
click for larger view |
Comparing Excise Taxes on Cigarettes, Beer and Wine
click for larger view |
Number of six-packs of beer that must be sold in New Mexico to produce the same state excise tax revenue generated by one carton of cigarettes: 9.1 |
click for larger view |
Number of bottles of wine that must be sold in New Mexico to produce the same state excise tax revenue generated by one carton of cigarettes: 6.2 |
New Mexico Smokers' Contributions
to the State Economy - 2002
New Mexico smokers comprise only 23.8%1 of the adult population in the state. Here is what they already pay because they choose to buy a legal product:
Smokers Pay Excise Taxes2 |
$ |
20,050,649 |
Smokers Pay Sales Taxes2 |
$ |
15,271,520 |
Smokers Pay Tobacco Settlement Payments3 |
$ |
42,629,803 |
|
$ |
77,951,972 |
Smokers' Economic/Tax Profile 2001
New Mexico smokers' median household income |
$ |
27,817 |
New Mexico nonsmokers' median household income |
$ |
36,222 |
- Working Families Pay More1
45.9% of NM smokers had household income LESS than $25,000
6.4% of NM smokers had household income EQUAL to or GREATER THAN $75,000
The impact of smoker payments on the incomes of working families was more than THREE TIMES the impact on higher income smokers. Those who can afford it least pay a disproportionate percentage of their hard-earned income in smoker payments.
- Smoker Excise Tax/Sales Tax/Tobacco Settlement Payments Liability in 20024
Total average paid per New Mexico smoker in excise and sales taxes |
$ |
113 |
Cost per New Mexico smoker for settlement payments to New Mexico |
$ |
137 |
Total annual payment to New Mexico per smoker |
$ |
250 |
Total annual payment to New Mexico per nonsmoker |
$ |
0 |
New Mexico Smoker Facts 5
- Total smokers' payments to New Mexico in FY2001 were:
- Almost three times FY2001 excise taxes on alcoholic beverages ($26.7 million)
- More than three times as large as FY2001 gaming revenues ($23.4 million)
- More than three times as large as FY2001 estate tax revenues ($24.2 million).
- Smokers' payments would have been sufficient to support FY2002 general fund budgeted amounts for:
- The New Mexico Institute of Mining and Technology ($28.5 million) AND the Public Regulation Commission ($12.9 million) AND the Office of Cultural Affairs ($23.8 million) COMBINED
OR
- Eastern New Mexico University, New Mexico Highlands University, and Western New Mexico University combined ($70.4 million) COMBINED
OR
- The Department of Public Safety ($71.6 million)
- In 1997, smokers provided 1,628 jobs that paid an additional $1.6 million to the state in personal and corporate income taxes.6
TOTAL SMOKER CIGARETTE PAYMENTS TO NEW MEXICO |
|
Per year: |
$ |
77,951,972 |
Per day: |
$ |
213,421 |
Per hour: |
$ |
8,893 |
Per minute: |
$ |
148 |
Per second: |
$ |
2.47 |
|
CIGARETTES DON'T PAY TAXES -
NEW MEXICO SMOKERS DO!!
1 Centers for Disease Control's Behavioral Risk Factor Surveillance System, 2001
2 Orzechowski & Walker, Arlington, Virginia; from state revenue department
3 PriceWaterhouseCooper
4 U.S. Census Bureau, 2000 state population and Centers for Disease Control's Behavioral Risk Surveillance System, 2001
5 Tax and Budget Comparisons are from the New Mexico Legislature, Legislative Finance Committee, Post Session Fiscal Review 2002, Online at http://legis.state.nm.us/lfc2002.asp.
6 American Economics Group, Inc., The U.S. Tobacco Industry in 1997: Its Economic Impact in the States
Master Settlement Agreement Payments To Date
$141,178,528 has been paid to New Mexico since the Master Settlement Agreement was signed on November 23, 1998.
A summary of New Mexico state law is provided below
(for specific questions regarding state law, contact your legal advisor.)
Minimum Age |
Customers must be 18 years or older to purchase tobacco products.
Knowingly selling or distributing tobacco products to persons under age 18 is prohibited, except that individuals may provide free samples to family or acquaintances on private property.
Any person selling goods at retail or wholesale may refuse to sell tobacco products to any person who is unable to produce an identity card as evidence that he is eighteen years of age or over. |
Restricted Products |
Any product made from or containing tobacco. |
Acceptable Forms of Identification |
Any document that contains a picture of the person issued by a federal, state, county or municipal government, including a motor vehicle driver's license or an identification card issued to a member of the armed forces. |
Fine/Penalty Schedule for Selling to Minors |
Any person who violates the sales-or-distribution-to-a-minor provision is guilty of a misdemeanor, punishable by a fine of up to $1,000 and one year in prison. |
Affirmative Defense |
None. |
Minor Possession |
The purchase or attempted purchase of tobacco products by minors or use of false identification to purchase tobacco is prohibited. A minor who attempts to purchase tobacco products shall be punished by a fine of up to $100 or 48 hours of community service. |
Sign Requirement
 |
Retailers are required to display a sign or decal where tobacco products are sold that reads:
A PERSON LESS THAN 18 YEARS OF AGE WHO PURCHASES A TOBACCO PRODUCT IS SUBJECT TO A FINE OF UP TO $1,000.
A PERSON WHO SELLS A TOBACCO PRODUCT TO A PERSON LESS THAN 18 YEARS OF AGE IS SUBJECT TO A FINE OF UP TO $1,000. |
Compliance Checks |
As a condition of receiving federal substance abuse block grant funds, federal law requires the state of New Mexico to conduct random, unannounced inspections of tobacco outlets to determine compliance rates. The Alcohol & Gaming Division of the Regulation & Licensing Department and local law enforcement authorities shall conduct the inspections. |
DISCLAIMER: This information summary is provided as a service of the Coalition, but is not intended to provide legal advice or analysis. These summaries are not intended to be complete representations of state law, which may contain additional rules and restrictions relating to tobacco products not mentioned in this summary, as well as retailing prohibitions related to matters including, but not limited to, state required training, minimum pack size, the sale of loose cigarettes and other restrictions. Retailers should not rely on these summaries as complete or accurate descriptions of applicable federal, state or local law. Users with questions about the law should seek the advice of counsel. Each state law is unique and possibly represents multiple legislative or regulatory acts. Local laws may differ. Check with local authorities for variations from state law. These summaries are not intended to be complete representations of state law. |
The reprinting of this information from the Coalition, does not constitute a representation or admission by RJRT that such information is accurate, complete, or a proper characterization of the laws concerned. The Coalition for Responsible Tobacco Retailing is a cooperative effort among retailers, wholesalers and manufacturers who share a common goal: to do all they can to prevent tobacco sales to minors.
|
[ Go Back ]
Information Copyright © by The Smokers Club, Inc. - (1790 reads) |
