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F I S C A L I M P A C T R E P O R T

SPONSOR Fox-Young

ORIGINAL DATE

LAST UPDATED

2/2/08

HB 464

SHORT TITLE Cigarette Tax Stamp Procedures

SB

ANALYST Francis

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

FY10

NFI

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

House Bill 464 changes the time a distributor of cigarettes has to affix cigarette tax stamps on

packages of cigarettes to 30 days from the current 10 day from the receipt of packages from a

wholesaler or manufacturer.

The effective date is July 1, 2008.

FISCAL IMPLICATIONS

TRD reports that this change would have no state or local fiscal impact.

TECHNICAL ISSUES

TRD:

This bill may create minor difficulties tracking cigarettes that move through the state.

For example, NMSA 1978 § 7-12-11 (A) requires that unstamped cigarettes being trans-

shipped out of state be held in a separate area of the warehouse. By allowing these

unstamped cigarettes to be on premises for up to thirty days, this provision of the law is

effectively repealed.

NF/bb