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New Mexico's High Alcohol Death Rate May Lead to Tax Increase

New Mexico's High Alcohol Death Rate May Lead to Tax Increase

New Mexico leads the nation in alcohol-related deaths, and the unfortunate statistic may lead to a tax increase for residents.

According to a recent report from the Associated Press, the state's Legislative Health and Human Services Committee has selected an alcohol tax increase as one of its top priorities for 2023's legislative session.

The article notes, however, that "some lawmakers don’t know how much to increase the alcohol tax, whether to change how the taxes are levied and what to do with the revenues raised."

The idea behind raising the alcohol tax is that more expensive beer, wine, and liquor will make it harder for people -- especially those with limited budgets -- to drink to excess. 

Currently, the Land of Enchantment taxes alcohol wholesalers a fixed amount per volume of beverage they sell to retail establishments, including restaurants and bars. Retailers, in turn, ask consumers to pay an up-charge to offset the fee.

The existing liquor excise tax rates in New Mexico are:

  • spirituous liquors – $1.60 per liter;
  • beer (except as provided in 5) below) – $.41 per gallon;
  • wine (except as provided in 4) and 6) below) – $.45 per liter;
  • fortified wine – $1.50 per liter;
  • beer manufactured or produced by a microbrewer – $.08 per gallon;
  • wine manufactured or produced by a small winegrower – $.10 per liter on the first 80,000 liters sold and $.20 per liter on liters sold over 80,000 but less than 950,000, and
  • cider – $.41 per gallon

This equates to five deaths per day caused by alcohol. Excessive alcohol use also cost the state over $2.2 billion in 2010 alone.

What do you think about NM potentially raising taxes on alcohol?

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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