According to comments made by the New Mexico Tax & Revenue Department in a Fiscal Impact Report, HB230 contains significant issues, including “substantial” increases in liquor excise taxes that risk diverting consumers to out-of-state and online purchases and adding unnecessary complexity to the tax code and tax compliance.
HB230, introduced in the 2023 session, removes the special, lower tax rates from small wineries, microbrewers, and craft distillers; raises the remaining liquor excise tax rates; and restates the rates in terms of servings that range 1.5 to 12 ounces rather than one liter and one gallon. Tax revenues, which currently go to the general fund, would be dedicated 100 percent to mitigating the harm done by the abuse of alcohol.