Lawmakers’ efforts to employ state tax policy to curb alcohol addiction and drunk driving have failed in the past two years, but this year’s version of a bill just succeeded in its second hearing in less than a week.
The House Taxation and Revenue Committee voted 6 to 4 Monday to approve an amended HB-417.
If it winds up getting signed by the governor, it’ll be the first time in 30 years that the state will have changed the tax on alcohol.
The bill wouldn’t alter the current liquor excise tax, but would impose a 6 percent surtax on all alcoholic beverages sold.
It would be paid by consumers at the register, so to speak, when purchasing drinks at a bar, restaurant, supermarket, liquor store, or other retail outlet.
One of the bill sponsors, Democratic Representative Joanne Ferrary, from Las Cruces, called it an “evidence-based public health strategy” designed to reduce alcohol consumption while generating funds for prevention and treatment efforts.
“ The reason we need this for New Mexico is that we're almost three times the national average of deaths related to alcohol in our state" Ferrary said.
"We've been ranked first, second, or third since 1981, and one in five deaths among working age adults ages 20 to 64 in New Mexico is attributable to alcohol.”
During a public comment period that lasted more than an hour, several supporters and opponents spoke. Business owners and representatives of the liquor industry criticized the measure as a bad-for-business strategy that wouldn’t make a dent in alcohol consumption and would hit poorer communities the hardest.
An amendment proposed by Republican Representative Joshua Hernandez, of Rio Rancho, and adopted by the committee, would exempt winegrowers, small brewers, and craft distillers from the new tax.
A similar amendment exempting restaurants was rejected by the committee.
Bill lead sponsor, Lara Cadena, also the committee’s vice chair, argued that it would be better to lower the across-the-board 6 percent rate than it would be to shield any group of alcohol retailers.
An initial analysis of the bill by the Legislative Finance Committee estimates it would generate $46 million in the next fiscal year.
Appropriations from HB-417 would go toward the Indian Affairs Department for a fund and treatment programs.
Money will also go to the University of New Mexico for related research and evaluation of the program.
The bill next heads to the house floor.
