Just after midnight, the House passed a bill that would add 75 cents to the cost of a pack of cigarettes—including smokes sold on tribal lands. The bill, which is estimated to bring in $33 million, has been called the cornerstone of the state’s budget fix.
Early Tuesday, House Speaker Ben Lujan told the Independent the bill is a ‘cornerstone’ of shoring up the state’s budget shortfall, and passing it was priority. Pueblos and tribes would not be forced to adopt the price hike, but if they don’t they would lose the 91 cents-per-pack tax exemption they have now. It was the latest victory in what has been a long fight to impose the tax.
Tribes would have the option of imposing the tax, and keeping all the money it brings in. If tribes choose not to impose the tax, they would have to purchase cigarettes at the same retail price as those off tribal lands.
“It’s a mutual beneficial thing for the state of New Mexico,” said Rep. James Magdelena, D-Jemez Pueblo.
Supporters argued for well over an hour that the bill would not only bring in the extra money, but would also be a strong deterrent to teenage smoking.
Those who spoke against the bill had reservations that the state would get as much money as expected. And with part of the money dedicated to education, they pointed out, a drop in expected revenue could be painful. “This is another way to set up education for failure,” said Rep. Keith Gardner, R-Roswell.
Towards the end of debate Rep. Thomas Taylor, R-Farmington asked for a call of the House, which means those members who were not excused had to be sought out and compelled to vote on the measure. A handful of members hurried into the chamber just before the vote.
The cigarette tax now moves on to the Senate.