This bill aims to increase the rate of the tobacco products tax in New Mexico and establish a new fund dedicated to nicotine use prevention and control. A new "nicotine use prevention and control fund" is created, which will be administered by the Department of Health. The fund will receive revenue from the increased tobacco products tax, specifically thirty-five percent of the net receipts from this tax, and will be used to develop educational programs and materials aimed at preventing nicotine use among individuals aged five to twenty-five. The bill also outlines the process for disbursements from the fund and stipulates that any unspent balance at the end of the fiscal year will revert to the general fund.

In addition to the establishment of the new fund, the bill amends existing definitions within the Tobacco Products Tax Act, including a revised definition of "e-cigarette" and the introduction of new terms such as "nicotine" and "wholesale price." The excise tax rate is set to increase to forty percent of the wholesale price for tobacco products, with specific rates established for cigars and little cigars. The bill also clarifies exemptions from the tobacco products tax and allows for deductions for interstate sales. The provisions of this act are set to take effect on July 1, 2025.

Statutes affected:
introduced version: 7-1-6.11, 7-12-3, 7-12-7, 7-12A-2, 7-12A-3, 7-12A-4, 7-12A-5
CT substitute: 7-12A-2, 7-12A-3, 7-12A-4, 7-12A-5