HOUSE BILL 502
54th legislature - STATE OF NEW MEXICO - first session, 2019
Jim R. Trujillo
RELATING TO TAXATION; INCREASING THE TOBACCO PRODUCTS TAX; IMPOSING THE TAX ON E-CIGARETTES.
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;
(1) means any electronic oral device that can be used to provide a vapor or aerosol of nicotine or any other substance to the person inhaling from the device; and
(2) includes any such device, or any part thereof, whether manufactured, distributed, marketed or sold as an e-cigarette, e-cigar, e-pipe or any other product name or descriptor;
[C.] D. "engaging in business" means carrying on or causing to be carried on any activity with the purpose of direct or indirect benefit;
[D.] E. "first purchaser" means a person engaging in business in New Mexico [who] that manufactures tobacco products or [who] that 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.] F. "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.] G. "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.] H. "tobacco product" means:
(1) any product, other than cigarettes, made of or derived from [or containing] tobacco or nicotine that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed or ingested by any other means, including cigars, chewing tobacco, e-cigarettes, pipe tobacco or snuff; and
(2) any component, part or accessory used to consume tobacco or nicotine but does not include any product that has been approved by the United States food and drug administration for sale as a tobacco cessation product or for other therapeutic purposes where such product is marketed and sold solely for such an approved use."
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 privilege of engaging in business to manufacture [or acquisition of], acquire or distribute tobacco products [in New Mexico to be distributed] in the ordinary course of business and for the [consumption of] privilege of consuming tobacco products in New Mexico, there is imposed an excise tax at the rate of [twenty-five] forty-five 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. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2019.
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