This bill amends the Liquor Excise Tax Act to introduce a new liquor excise surtax on retailers selling alcoholic beverages, effective July 1, 2027, at a rate of three percent of the price paid for such beverages. The revenue generated from this surtax will be allocated to a newly established Tribal Alcohol Harms Alleviation Fund, which aims to support alcohol and substance use harms prevention, treatment, and recovery services for individuals. Additionally, the bill modifies the distribution of existing liquor excise tax revenues, ensuring that a portion is directed to the new fund.

Furthermore, the bill updates the definitions within the Liquor Excise Tax Act, including the definition of "gross receipts," which now explicitly excludes taxes imposed by the Liquor Excise Tax Act from its calculation. Other definitions related to alcoholic beverages, retailers, and wholesalers are also refined to clarify the scope of the law. The bill also mandates that permit holders for direct wine shipments must register for and pay the liquor excise tax, liquor excise surtax, and gross receipts taxes associated with their sales in New Mexico. The effective date for the provisions of this act is set for July 1, 2026.

Statutes affected:
introduced version: 7-1-6.40, 7-9-3.5, 7-17-2, 7-17-6, 7-17-9, 7-17-10, 7-17-11, 7-17-12, 60-6A-11.1