46th legislature - STATE OF NEW MEXICO - first session, 2003

FOR THE MEDICAID REFORM COMMITTEE

AND THE TOBACCO SETTLEMENT REVENUE OVERSIGHT COMMITTEE

RELATING TO TAXATION; INCREASING THE RATE OF THE CIGARETTE TAX; MODIFYING DISTRIBUTIONS OF CIGARETTE TAX REVENUE; AMENDING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 7-1-6.11 NMSA 1978 (being Laws 1983, Chapter 211, Section 16, as amended) is amended to read:

"7-1-6.11. DISTRIBUTIONS OF CIGARETTE TAXES.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the county and municipality recreational fund in an amount equal to [four and three-quarters] one and forty-seven hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax.

B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the county and municipal cigarette tax fund in an amount equal to [nine and one-half] two and ninety-five hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax.

C. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the cancer research and treatment center at the university of New Mexico [school of medicine] health sciences center in an amount equal to [four and three-quarters] one and forty-seven hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax.

D. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the New Mexico finance authority in an amount equal to [seven and one-eighth] two and twenty-one hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax."

Section 2. Section 7-12-3 NMSA 1978 (being Laws 1971, Chapter 77, Section 3, as amended) is amended to read:

"7-12-3. EXCISE TAX ON CIGARETTES--RATES.--

A. For the privilege of selling, giving or consuming cigarettes in New Mexico, there is levied an excise tax at the rate of [one and five hundredths cents ($.0105)] four and five hundredths cents ($.0405) for each cigarette sold, given or consumed in this state.

B. The tax imposed by this section shall be referred to as the "cigarette tax"."

Section 3. APPROPRIATION.--Forty million dollars ($40,000,000) is appropriated from the general fund to the human services department for expenditure in fiscal year 2004 and subsequent fiscal years for medicaid services under Title 19 or Title 21 of the Social Security Act. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

Section 4. EFFECTIVE DATE.--

A. The effective date of the provisions of Section 2 of this act is July 1, 2003.

B. The effective date of the provisions of

Section 1 of this act is August 1, 2003.