Bills are heading to the legislature that would raise taxes on alcohol and tobacco. Advocates say the higher prices, and the prevention campaigns they鈥檒l fund, will help curb use in a state that struggles with alcoholism and teen nicotine use.
But some lawmakers pushed back on that assumption in a hearing of the Revenue Stabilization & Tax Policy Committee Tuesday.
, sponsored by Sen. Antoinette Sedillo Lopez, would raise the variable taxes on liquor, wine and beer, to a flat $0.25 per drink 鈥� a 1.5-ounce shot of liquor, a five-ounce glass of wine or 12 ounces of beer.
That鈥檚 up from a $1.60 tax per liter of liquor, $.45 per liter of wine and $.41 per gallon of beer, except when produced by smaller local outfits, when the tax is lower.
The current $0.41 cent tax on a gallon of beer would jump to an equivalent $2.60.
鈥淎 significant increase is what causes a deterrent to drinking,鈥� she told her colleagues. 鈥淎nd that鈥檚 what we want to do, is reduce consumption.鈥�
aims to double the cigarette tax to $4 per pack and impose a comparable 71% tax on the wholesale price of vaping products. Unlike with alcohol, where about half of the tax revenue goes toward curbing use, none of the additional tobacco dollars are earmarked for prevention.
Committee member Republican Sen. Craig Brandt took issue with any of the funds from either tax going into the state general fund.
鈥淚f we鈥檙e going to tax these kinds of products 鈥� we call them 鈥榮in taxes鈥� 鈥� then it needs to go to preventing or to dealing with the repercussions of the sin we are taxing,鈥� he told the presenters.
Advocates presenting the bill argued that studies show raising the cost of nicotine products alone contributes to prevention, especially among teens. Democratic Rep. Micaela Lara Cadena wasn鈥檛 buying it.
鈥淵oung people know what鈥檚 happening here, and they鈥檙e also living through trauma, complexity, and making decisions that are much more muddled than what it takes for them to pay for whatever substance they鈥檙e using,鈥� she said.
She added that the tax would disproportionately target people with low incomes and those coping with addiction.
and agree that raising the price of tobacco is one of the most effective ways to reduce consumption.
Still, Cadena argued that before the state throws more funds at existing prevention efforts, or raises taxes as a means in and of itself, it needs to address the root causes of substance use.
鈥淢ore money is not going to save New Mexicans,鈥� she said. 鈥淲e need to drastically rethink how we鈥檝e approached these issues and start from a place of respecting New Mexicans.鈥�
Sedillo Lopez, speaking on behalf of the tobacco bill sponsors, invited Cadena to be part of the discussion about how the money would best be spent as the bill moves through the legislature next month.
The Your New Mexico Government project is a collaboration between 九色网 and New Mexico PBS with support from the Thornburg Foundation.
