HOUSE BILL 428
51st legislature - STATE OF NEW MEXICO - first session, 2013
RELATING TO TAXATION; INCREASING THE RATE OF THE TOBACCO PRODUCTS TAX; CLARIFYING THE DEFINITION OF "TOBACCO PRODUCTS"; PROVIDING FOR A DISTRIBUTION TO THE BEN LUJAN LUNG CANCER RESEARCH FUND; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-12A-2 NMSA 1978 (being Laws 1986, Chapter 112, Section 3, as amended) is amended to read:
"7-12A-2. DEFINITIONS.--As used in the Tobacco Products Tax Act:
A. "department" means the taxation and revenue department, the secretary or any employee of the department exercising authority lawfully delegated to that employee by the secretary;
B. "distribute" means to sell or to give;
C. "engaging in business" means carrying on or causing to be carried on any activity with the purpose of direct or indirect benefit;
D. "first purchaser" means a person engaging in business in New Mexico who manufactures tobacco products or who purchases or receives on consignment tobacco products from any person outside of New Mexico, which tobacco products are to be distributed in New Mexico in the ordinary course of business;
E. "person" means any individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, joint venture, syndicate, limited liability company, limited liability partnership, other association or gas, water or electric utility owned or operated by a county or municipality or other entity of the state; "person" also means, to the extent permitted by law, a federal, state or other governmental unit or subdivision or an agency, department or instrumentality;
F. "product value" means the amount paid, net of any discounts taken and allowed, for tobacco products or, in the case of tobacco products received on consignment, the value of the tobacco products received or, in the case of tobacco products manufactured and sold in New Mexico, the proceeds from the sale by the manufacturer of the tobacco products; and
G. "tobacco product" means any product, other than cigarettes, made from or containing tobacco that is intended for human consumption whether chewed, smoked, heated, absorbed, dissolved, inhaled, snorted, sniffed or ingested by any other means, unless the product has been approved by the United States food and drug administration as a tobacco-use cessation product and is being marketed and sold for that approved purpose."
SECTION 2. Section 7-12A-3 NMSA 1978 (being Laws 1986, Chapter 112, Section 4, as amended) is amended to read:
"7-12A-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS "TOBACCO PRODUCTS TAX"--DATE PAYMENT OF TAX DUE.--
A. For the [manufacture or acquisition of] privilege of engaging in business to manufacture or acquire tobacco products in New Mexico to be distributed in the ordinary course of business and for the consumption of tobacco products in New Mexico, there is imposed an excise tax at the rate of [twenty-five] fifty-three percent of the product value of the tobacco products.
B. The tax imposed by Subsection A of this section may be referred to as the "tobacco products tax".
C. The tobacco products tax shall be paid by the first purchaser on or before the twenty-fifth day of the month following the month in which the taxable event occurs."
SECTION 3. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] DISTRIBUTION OF TOBACCO PRODUCTS TAX.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the Ben Lujan lung cancer research fund at the university of New Mexico health sciences center in an amount equal to seven percent of the net receipts, exclusive of penalties and interest, attributable to the tobacco products tax."
SECTION 4. APPLICABILITY.--The distribution pursuant to Section 3 of this act applies to receipts from the tobacco products tax that are attributable to payments from the first purchaser on taxable events that occur on or after July 1, 2013.
SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.
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