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 a vailable 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 Beam
DATE TYPED 02/08/05 HB 319
SHORT TITLE INCREASE TOBACCO PRODUCTS TAX
SB
ANALYST Padilla-Jackson
REVENUE
Estimated Revenue
Subsequent
Years Impact
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$2,432.0
$2,408.0
Recurring
General Fund
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Taxation and Revenue Department (TRD)
FOR THE TOBACCO SETTLEMENT REVENUE COMMITTEE AND THE LEGISLATIVE
HEALTH AND HUMAN SERVICES COMMITTEE
SUMMARY
Synopsis of Bill
House Bill 319 amends current tax statutes to increase the excise tax imposed on the manufac-
ture or acquisition of tobacco products in New Mexico for sale in the ordinary course of busi-
ness. The bill increases the tax, which is referred to in current statute as the “tobacco products
tax”, 15 percentage points from 25 percent to 40 percent of the product value of the tobacco
products.
No effective data is provided for this bill.
FISCAL IMPLICATIONS
According to the analysis provided by TRD, the proposed increase in the tobacco products tax to
40 percent of value will generate approximately $2.4 million of additional revenue to the general
fund. TRD’s estimate accounts for a decline in consumption of tobacco products due to the in-