The House Taxation and Revenue Committee on Wednesday night rejected by a seven to eight vote a Senate proposal to raise New Mexico’s cigarette tax.
The proposal, SB30, was amended to raise the state’s cigarette tax by 75 cents instead of a $1, the amount in the original bill. The amendment also would have given tribal lands the opportunity to raise the tax as well.
Extending the opportunity to tribal lands would have addressed the worry that smokers would buy cigarettes on tribal lands rather than pay the extra cost of cigarettes.
Tracy Cadigan of the American Cancer Society stood in support of the bill, saying it would reap not only needed tax revenues but also lead to healthier living for many.
According to a legislative analysis of the bill, raising cigarette taxes is widely regarded as one of the most effective tobacco prevention strategies, with such increases leading to “substantial long-run improvements in health” (Reducing Tobacco Use, Surgeon General, 2000).”
But not everyone liked the tax.
“This is a tax on top of a tax,” said Luke Otero. “There will be a disparity on the east side.”
Otero was citing Texas. He also noted that Colorado has a lower rate than New Mexico.