- Apr 2, 2009
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New Mexico legislation (HB 428) would redefine “tobacco product” for tax purposes to include e-cigarettes and dissolvables, and would increase the tax rate for OTP (i.e. all tobacco products except cigarettes) from 25% to 53% of manufacturer's price.
HB0428
New Mexico Legislature
HB 428 was referred to the House Health, Govt and Indian Affairs Cmte and to the Taxation and Revenue Cmte
New Mexico Legislature
New Mexico Legislature
There is only one bill sponsor (Mimi Stewart-D) out of 70 House members, and she isn't on either one of the committees (but she chairs the Education Committee). Democrats control the NM House.
The key (but deeply flawed) argument Stewart will make in support of her bill is that establishes equal taxation of all tobacco products (as CTFK estimated that NM's $1.66/pack cigarette tax is 53% of the manufacturer's price for cigs).
http://www.tobaccofreekids.org/research/factsheets/pdf/0169.pdf
In fact, tobacco products should be taxed according to the product's risk and to the amount of state expenditures are spent to treat problems caused by usage of the products.
Since cigarettes are at least 100 times more hazardous than e-cigarettes and smokeless tobacco products, and since cigarette smoking imposes at least 100 times more healthcare expenditures on NM taxpayers than e-cigarettes and smokeless tobacco, cigarettes should be taxed at a much higher rate.
HB0428
New Mexico Legislature
HB 428 was referred to the House Health, Govt and Indian Affairs Cmte and to the Taxation and Revenue Cmte
New Mexico Legislature
New Mexico Legislature
There is only one bill sponsor (Mimi Stewart-D) out of 70 House members, and she isn't on either one of the committees (but she chairs the Education Committee). Democrats control the NM House.
The key (but deeply flawed) argument Stewart will make in support of her bill is that establishes equal taxation of all tobacco products (as CTFK estimated that NM's $1.66/pack cigarette tax is 53% of the manufacturer's price for cigs).
http://www.tobaccofreekids.org/research/factsheets/pdf/0169.pdf
In fact, tobacco products should be taxed according to the product's risk and to the amount of state expenditures are spent to treat problems caused by usage of the products.
Since cigarettes are at least 100 times more hazardous than e-cigarettes and smokeless tobacco products, and since cigarette smoking imposes at least 100 times more healthcare expenditures on NM taxpayers than e-cigarettes and smokeless tobacco, cigarettes should be taxed at a much higher rate.
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