“Uncertainty” was the operative word when lobbyists told attendees at the New Mexico Alcohol Alliance annual meeting on December 12, 2022 what can be expected in the 2023 legislative session that starts January 17.
TJ and Jennifer Trujillo of Strategies 360 said that while the make up of the New Mexico House remains 45-Democrats and 25-Republicans/R-leaning-Independents, the 2023 session will see a complete change in House leadership. Moreover, newly-elected legislators who may be unfamiliar with the legislative process will add to the uncertainty. TJ Trujillo said 34 new legislators have been seated – almost half of all House seats – in the last two years.
The lobbying team said this will be a difficult session for alcohol as a number of senior legislators continue to focus on major changes to the statute. Legislators will be looking at ways to address New Mexico’s high rate of alcohol abuse deaths, possibly including an increase in the alcohol excise tax, a reallocation of funds from DUI programs to prevention programs, and revoking special economic development exemptions that were given to craft brewers.
Annual meeting participants voiced confusion about the Gross Receipts Tax (GRT) deduction enabled by HB-255, citing lack of information or guidance from the state. Those who have filed for the deduction have experienced everything from a refund to penalties for underpaying their taxes. (Penalties were later overturned.) The lobbying team advised liquor license owners to file for the deduction because any changes to the statute would take effect in the future rather than retroactively.
Minutes of the meeting are available to members of the New Mexico Alcohol Alliance upon request.