For the second time in less than a month the New Mexico House has stubbed out a cigarette tax. On Monday night the House Taxation and Revenue Committee voted not to pass along a bill that would have added 75 cents a pack to cigarettes all over New Mexico.
Even smokers who bought cigarettes in tribal areas would’ve paid more in taxes, but tribal governments could have received the full amount back if they choose to do so.
Supporters included the American Cancer Society, AFSME and several state tribes. They said New Mexico’s coffers stood to recieve more than $30 million dollars from the tax, with tribal governement across the state possibly getting $20 million. They said the difference between what a pack costs on and off tribal land would’ve remained the same, but price would have increased in both places.
Opponents included paid lobbyists from the tobacco industry as well as business organizations. They had many doubts about the bill including the dollar amounts it would bring in. They said medical funds, which get their money from cigarette taxes, would be badly effected and that strapping a tax on the 18 percent of New Mexicans who smoke was unfair.
The cigarette tax was one of the bills designed to to help shore up the state’s budget gap. In the vote Reps. Jeff and Barreras sided with Republicans to defeat the tax; Rep. Ernest Chavez was absent during the vote.
With its defeat, lawmakers will now have to look elsewhere to find the money.