Bill > SB77

This bill significantly increases the excise tax on cigarettes and other tobacco products in New Mexico, with the goal of generating more revenue for early childhood education and other state programs. Specifically, the tax per cigarette is raised from 8.3 cents to 13.3 cents for standard packs, and proportionally higher for smaller packs, while the tax on other tobacco products, referred to as the "tobacco products tax," is increased from 25% to 66% of their value. The bill also expands the definition of "tobacco product" to include electronic devices that deliver nicotine or other substances, along with their components and accessories, but excludes products approved by the FDA for therapeutic purposes like smoking cessation. A substantial portion of the revenue generated from these increased taxes, specifically 41% of the net receipts from the tobacco products tax, will be distributed to the children, youth and families department for early childhood education initiatives, with other portions allocated to cancer research, the New Mexico finance authority for various projects, and a credit enhancement account.