Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

F I S C A L    I M P A C T    R E P O R T

 

 

 

SPONSOR

Begaye

DATE TYPED

1-27-04

HM

1

 

SHORT TITLE

Promote Cigarette Taxation Parity

SB

 

 

 

ANALYST

Neel

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

 

 

 

 

 

Indeterminate

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

Relates to:

 

HB 59, Increase Tobacco Products Tax

HB 83, Tobacco Delivery Sales Act

HB 86, Tobacco Stamp Procedure Changes

HB 220, Tobacco Settlement Revenue Appropriation

SB 192, Smart Moves Smoking Cessation Program Funding

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From:

 

Taxation and Revenue Department (TRD)

 

No Responses Received From:

Attorney General Office (AG)

Department of Finance and Administration (DFA)

Department of Indian Affairs

 

 

 

 

 

SUMMARY

 

Synopsis of Bill

 

House Memorial 1 requests that each Indian nation, tribe and pueblo consider raising its tax on cigarettes and also work with the Taxation and Revenue Department and the Attorney General to establish government-to-government agreements to promote cigarette taxation parity.

 

Significant Issues

 

TRD notes the following:

 

Other states seem to have had some success in addressing the issue of cigarette taxation parity.  Arizona, in particular, uses a three-stamp approach.  Non-Indians coming to the reservation are required to buy cigarettes with a red colored stamp.  Wholesalers selling these packs to the reservation are required to pay tax (or a portion of the off-reservation tax rate) on these stamps.

 

BT/njw:lg