Bill

Bill > HB417


NM HB417

Liquor Tax Changes & Programs


summary

Introduced
02/12/2025
In Committee
02/24/2025
Crossed Over
Passed
Dead
03/22/2025

Introduced Session

Potential new amendment
2025 Regular Session

Bill Summary

AN ACT RELATING TO TAXATION; AMENDING THE DISTRIBUTIONS OF THE LIQUOR EXCISE TAX; AMENDING DEFINITIONS IN THE LIQUOR EXCISE TAX ACT; IMPOSING A LIQUOR EXCISE SURTAX ON RETAILERS; DISTRIBUTING THE REVENUE FROM THE SURTAX TO A NEW TRIBAL ALCOHOL HARMS ALLEVIATION FUND; CHANGING THE LOCAL DWI GRANT PROGRAM ACT TO THE LOCAL ALCOHOL HARMS ALLEVIATION PROGRAM ACT AND MAKING AMENDMENTS TO THE ACT; CREATING THE TRIBAL ALCOHOL HARMS ALLEVIATION PROGRAM ACT; EXCLUDING THE TAXES IMPOSED BY THE LIQUOR EXCISE TAX FROM THE DEFINITION OF "GROSS RECEIPTS" IN THE GROSS RECEIPTS AND COMPENSATING TAX ACT; REQUIRING CERTAIN LEGISLATIVE COMMITTEES TO REVIEW THE RATES OF THE LIQUOR EXCISE TAX AND LIQUOR EXCISE SURTAX AND THE DISTRIBUTIONS FROM THOSE TAXES; MAKING APPROPRIATIONS.

AI Summary

This bill makes comprehensive changes to the state's liquor taxation and alcohol harm prevention programs. It renames the existing local DWI (Driving While Intoxicated) grant program to the "Local Alcohol Harms Alleviation Program" and creates a new "Tribal Alcohol Harms Alleviation Program". The bill establishes a new liquor excise surtax of 6% beginning July 1, 2026, and modifies how liquor excise tax revenues are distributed. Specifically, 94% of liquor excise tax revenues will now go to the local alcohol harms alleviation fund, and 6% will go to the drug court fund. Additionally, a new fund will be created to distribute liquor excise surtax revenues to tribal alcohol harms alleviation programs. The bill expands the focus of alcohol-related programs from primarily addressing drunk driving to a broader approach of preventing and mitigating substance misuse harms. It also establishes a new tribal alcohol harms alleviation council to oversee grants to Indian nations, tribes, pueblos, and urban Indian populations. The legislation includes provisions for research on alcohol policy and prevention efforts, with mandated reporting to legislative committees, and sets a review of the tax rates and distributions by December 1, 2032.

Committee Categories

Health and Social Services

Sponsors (10)

Last Action

House Taxation & Revenue Committee (08:30:00 3/10/2025 Room 317) (on 03/10/2025)

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