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0002| SENATE BILL 138
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0003| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0004| INTRODUCED BY
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0005| DEDE FELDMAN
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0007|
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0008|
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0009| FOR THE HEALTH AND WELFARE REFORM COMMITTEE
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0010|
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0011| AN ACT
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0012| RELATING TO TAXATION; INCREASING THE RATE OF THE CIGARETTE TAX
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0013| AND THE TOBACCO PRODUCTS TAX; DISTRIBUTING ADDITIONAL REVENUES
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0014| FOR SUPPORT OF CERTAIN MEDICAID CLIENTS; MAKING AN
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0015| APPROPRIATION.
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0016|
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0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018| Section 1. A new section of the Public Assistance Act is
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0019| enacted to read:
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0020| "[NEW MATERIAL] FUND CREATED--PURPOSE--ADMINISTRATION--
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0021| APPROPRIATION.--The "medicaid services fund" is created in the
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0022| state treasury. The fund consists of cigarette tax revenue as
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0023| distributed pursuant to Section 7-1-6.11 NMSA 1978 and tobacco
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0024| products tax revenue as distributed pursuant to the Tax
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0025| Administration Act. The fund shall be administered by the
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0001| human services department. Money in the fund shall be
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0002| appropriated by the legislature to the department to provide
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0003| medical services to those medicaid clients who were eligible
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0004| for services as of July 1, 1997 in part due to their income
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0005| being no more than one hundred eighty-five percent of the
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0006| federal poverty level. Money in the fund shall not revert at
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0007| the end of any fiscal year."
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0008| Section 2. Section 7-1-6.11 NMSA 1978 (being Laws 1983,
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0009| Chapter 211, Section 16, as amended) is amended to read:
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0010| "7-1-6.11. DISTRIBUTIONS OF CIGARETTE TAXES.--
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0011| A. A distribution pursuant to Section 7-1-6.1 NMSA
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0012| 1978 shall be made to the county and municipality recreational
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0013| fund in an amount equal to [four and three-quarters] two
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0014| and three-fourths percent of the net receipts, exclusive of
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0015| penalties and interest, attributable to the cigarette tax.
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0016| B. A distribution pursuant to Section 7-1-6.1 NMSA
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0017| 1978 shall be made to the county and municipal cigarette tax
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0018| fund in an amount equal to [nine and one-half] five and
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0019| one-half percent of the net receipts, exclusive of penalties
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0020| and interest, attributable to the cigarette tax.
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0021| C. A distribution pursuant to Section 7-1-6.1 NMSA
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0022| 1978 shall be made to the cancer center at the university of
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0023| New Mexico school of medicine in an amount equal to [four and
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0024| three-quarters] two and three-fourths percent of the net
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0025| receipts, exclusive of penalties and interest, attributable to
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0001| the cigarette tax.
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0002| D. A distribution pursuant to Section 7-1-6.1 NMSA
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0003| 1978 shall be made to the New Mexico finance authority in an
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0004| amount equal to [seven and one-eighth] four and one-eighth
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0005| percent of the net receipts, exclusive of penalties and
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0006| interest, attributable to the cigarette tax.
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0007| E. A distribution pursuant to Section 7-1-6.1
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0008| NMSA 1978 shall be made to the medicaid services fund in an
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0009| amount equal to forty-two and eleven-hundredths percent of the
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0010| net receipts, exclusive of penalties and interest,
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0011| attributable to the cigarette tax."
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0012| Section 3. A new section of the Tax Administration Act
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0013| is enacted to read:
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0014| "[NEW MATERIAL] TOBACCO PRODUCTS TAX--DISTRIBUTION.--A
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0015| distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be
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0016| made to the medicaid services fund in an amount equal to
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0017| fifty-six percent of the net receipts, exclusive of penalties
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0018| and interest, attributable to the tobacco products tax."
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0019| Section 4. Section 7-12-3 NMSA 1978 (being Laws 1971,
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0020| Chapter 77, Section 3, as amended) is amended to read:
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0021| "7-12-3. EXCISE TAX ON CIGARETTES--RATES.--
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0022| A. For the privilege of selling, giving or
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0023| consuming cigarettes in New Mexico, there is levied an excise
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0024| tax at the rate of [one and five hundredths cents ($.0105)]
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0025| one and nine-tenths cents ($.019) for each cigarette sold,
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0001| given or consumed in this state.
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0002| B. The tax imposed by this section shall be
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0003| referred to as the "cigarette tax"."
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0004| Section 5. Section 7-12A-3 NMSA 1978 (being Laws 1986,
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0005| Chapter 112, Section 4, as amended) is amended to read:
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0006| "7-12A-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS
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0007| "TOBACCO PRODUCTS TAX"--DATE PAYMENT OF TAX DUE.--
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0008| A. For the manufacture or acquisition of tobacco
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0009| products in New Mexico for sale in the ordinary course of
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0010| business, there is imposed an excise tax at the rate of
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0011| [twenty-five] forty-five percent of the product value of
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0012| the tobacco products.
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0013| B. The tax imposed by Subsection A of this section
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0014| may be referred to as the "tobacco products tax".
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0015| C. The tobacco products tax shall be paid by the
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0016| first purchaser on or before the twenty-fifth day of the month
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0017| following the month in which the taxable event occurs."
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0018| Section 6. EFFECTIVE DATES.--
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0019| A. The effective date of the provisions of
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0020| Sections 2 and 3 of this act is August 1, 1998.
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0021| B. The effective date of the provisions of
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0022| Sections 1, 4 and 5 of this act is July 1, 1998.
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0023|
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