HOUSE BILL 12

49th legislature - STATE OF NEW MEXICO - first special session, 2009

INTRODUCED BY

Brian F. Egolf

AN ACT

RELATING TO REVENUE; INCREASING THE CIGARETTE TAX RATE; INCREASING THE TOBACCO PRODUCTS TAX RATE; ADJUSTING THE DISTRIBUTIONS OF CIGARETTE TAX; ADJUSTING THE DISCOUNTS ON CIGARETTE STAMP SALES; DECLARING AN EMERGENCY.

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 [one and thirty-five hundredths] ninety-three 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 [two and sixty-nine hundredths] one and eighty-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 health sciences center in an amount equal to [one and thirty-five hundredths] ninety-three 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 [two and two-hundredths] one and thirty-nine hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax.

          E. A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to [fourteen and thirty-seven hundredths] nine and eighty-seven hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax, shall be made, on behalf of and for the benefit of the university of New Mexico health sciences center, to the New Mexico finance authority.

          F. A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to [six and five-hundredths] four and sixteen-hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax shall be made to the New Mexico finance authority for land acquisition and the planning, designing, construction and equipping of department of health facilities or improvements to such facilities.

          G. A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to [fifteen and seventy-nine hundredths] ten and eighty-five hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax shall be made to the New Mexico finance authority for deposit in the credit enhancement account created in the authority.

          H. A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to [one] sixty-nine hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax shall be made, on behalf of and for the benefit of the rural county cancer treatment fund, to the New Mexico finance authority."

     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 following rates for each cigarette sold, given or consumed in this state:

                (1) [four and fifty-five hundredths cents ($.0455)] nine and fifty-five hundredths cents ($.0955) if the cigarettes are packaged in lots of twenty or twenty-five;

                (2) [nine and ten-hundredths cents ($.091)] nineteen and ten-hundredths cents ($.191) if the cigarettes are packaged in lots of ten; or

                (3) [eighteen and twenty-hundredths cents ($.182)] thirty-eight and twenty-hundredths cents ($.382) if the cigarettes are packaged in lots of five.

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

     Section 3. Section 7-12-7 NMSA 1978 (being Laws 1971, Chapter 77, Section 7, as amended by Laws 2006, Chapter 89, Section 3 and by Laws 2006, Chapter 91, Section 6) is amended to read:

     "7-12-7. SALE OF STAMPS--PRICES.--

          A. Only the department shall sell stamps. Stamps may be sold by the department only to a distributor.

          B. Stamps shall display a serial number. Stamps bearing the same serial number shall not be sold to more than one distributor. The department shall keep records of the serial numbers of the stamps provided to each distributor.

          C. A stamp shall be affixed to a package of cigarettes in such a manner as to clearly display the serial number at the point of sale.

          D. Tax stamps shall be sold at their face value with the following discounts:

                (1) [one] forty-eight hundredths percent less than the face value of the first thirty thousand dollars ($30,000) of stamps purchased in one calendar month;

                (2) [eight-tenths] thirty-eight hundredths percent less than the face value of the second thirty thousand dollars ($30,000) of stamps purchased in one calendar month; and

                (3) [one-half] twenty-four hundredths percent less than the face value of stamps purchased in excess of sixty thousand dollars ($60,000) in one calendar month.

          E. If the face value of tax stamps sold in a single sale is less than one thousand dollars ($1,000), the discount provided for in this section shall not be allowed.

          F. Payment for tax stamps shall be made on or before the twenty-fifth day of the month following the month in which the sale of stamps by the department is made.

          G. Tax-exempt stamps shall be provided only to distributors and shall be free of charge; provided that the distributor is in full compliance with the reporting requirements of the Cigarette Tax Act and rules adopted pursuant to that act."

     Section 4. Section 7-12A-3 NMSA 1978 (being Laws 1986, Chapter 112, Section 4, as amended) is amended to read:

     "7-12A-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS "TOBACCO PRODUCTS TAX"--DATE PAYMENT OF TAX DUE.--

          A. For the manufacture or acquisition of tobacco products in New Mexico to be distributed in the ordinary course of business and for the consumption of tobacco products in New Mexico, there is imposed an excise tax at the rate of [twenty-five] forty percent of the product value of the tobacco products.

          B. The tax imposed by Subsection A of this section may be referred to as the "tobacco products tax".

          C. The tobacco products tax shall be paid by the first purchaser on or before the twenty-fifth day of the month following the month in which the taxable event occurs."

     Section 5. APPLICABILITY.--The distributions pursuant to the provisions of Section 1 of this act that are to become effective on the effective date of this act apply to revenue earned on a modified accrual basis on or after that date.

     Section 6. CONTINGENT EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2010; provided that the act is adopted by a vote of two-thirds' vote of each house. If either house fails to adopt this act by a two-thirds' vote, the effective date shall be February 1, 2010.

     Section 7. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.