0001| | 0002| SENATE BILL 138 | 0003| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0004| INTRODUCED BY | 0005| DEDE FELDMAN | 0006| | 0007| | 0008| | 0009| FOR THE HEALTH AND WELFARE REFORM COMMITTEE | 0010| | 0011| AN ACT | 0012| RELATING TO TAXATION; INCREASING THE RATE OF THE CIGARETTE TAX | 0013| AND THE TOBACCO PRODUCTS TAX; DISTRIBUTING ADDITIONAL REVENUES | 0014| FOR SUPPORT OF CERTAIN MEDICAID CLIENTS; MAKING AN | 0015| APPROPRIATION. | 0016| | 0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0018| Section 1. A new section of the Public Assistance Act is | 0019| enacted to read: | 0020| "[NEW MATERIAL] FUND CREATED--PURPOSE--ADMINISTRATION-- | 0021| APPROPRIATION.--The "medicaid services fund" is created in the | 0022| state treasury. The fund consists of cigarette tax revenue as | 0023| distributed pursuant to Section 7-1-6.11 NMSA 1978 and tobacco | 0024| products tax revenue as distributed pursuant to the Tax | 0025| Administration Act. The fund shall be administered by the | - 1 - 0001| human services department. Money in the fund shall be | 0002| appropriated by the legislature to the department to provide | 0003| medical services to those medicaid clients who were eligible | 0004| for services as of July 1, 1997 in part due to their income | 0005| being no more than one hundred eighty-five percent of the | 0006| federal poverty level. Money in the fund shall not revert at | 0007| the end of any fiscal year." | 0008| Section 2. Section 7-1-6.11 NMSA 1978 (being Laws 1983, | 0009| Chapter 211, Section 16, as amended) is amended to read: | 0010| "7-1-6.11. DISTRIBUTIONS OF CIGARETTE TAXES.-- | 0011| A. A distribution pursuant to Section 7-1-6.1 NMSA | 0012| 1978 shall be made to the county and municipality recreational | 0013| fund in an amount equal to ~~[four and three-quarters]~~ two | 0014| and three-fourths percent of the net receipts, exclusive of | 0015| penalties and interest, attributable to the cigarette tax. | 0016| B. A distribution pursuant to Section 7-1-6.1 NMSA | 0017| 1978 shall be made to the county and municipal cigarette tax | 0018| fund in an amount equal to ~~[nine and one-half]~~ five and | 0019| one-half percent of the net receipts, exclusive of penalties | 0020| and interest, attributable to the cigarette tax. | 0021| C. A distribution pursuant to Section 7-1-6.1 NMSA | 0022| 1978 shall be made to the cancer center at the university of | 0023| New Mexico school of medicine in an amount equal to ~~[four and~~ | 0024| ~~three-quarters]~~ two and three-fourths percent of the net | 0025| receipts, exclusive of penalties and interest, attributable to | - 2 - 0001| the cigarette tax. | 0002| D. A distribution pursuant to Section 7-1-6.1 NMSA | 0003| 1978 shall be made to the New Mexico finance authority in an | 0004| amount equal to ~~[seven and one-eighth]~~ four and one-eighth | 0005| percent of the net receipts, exclusive of penalties and | 0006| interest, attributable to the cigarette tax. | 0007| E. A distribution pursuant to Section 7-1-6.1 | 0008| NMSA 1978 shall be made to the medicaid services fund in an | 0009| amount equal to forty-two and eleven-hundredths percent of the | 0010| net receipts, exclusive of penalties and interest, | 0011| attributable to the cigarette tax." | 0012| Section 3. A new section of the Tax Administration Act | 0013| is enacted to read: | 0014| "[NEW MATERIAL] TOBACCO PRODUCTS TAX--DISTRIBUTION.--A | 0015| distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be | 0016| made to the medicaid services fund in an amount equal to | 0017| fifty-six percent of the net receipts, exclusive of penalties | 0018| and interest, attributable to the tobacco products tax." | 0019| Section 4. Section 7-12-3 NMSA 1978 (being Laws 1971, | 0020| Chapter 77, Section 3, as amended) is amended to read: | 0021| "7-12-3. EXCISE TAX ON CIGARETTES--RATES.-- | 0022| A. For the privilege of selling, giving or | 0023| consuming cigarettes in New Mexico, there is levied an excise | 0024| tax at the rate of ~~[one and five hundredths cents ($.0105)]~~ | 0025| one and nine-tenths cents ($.019) for each cigarette sold, | - 3 - 0001| given or consumed in this state. | 0002| B. The tax imposed by this section shall be | 0003| referred to as the "cigarette tax"." | 0004| Section 5. Section 7-12A-3 NMSA 1978 (being Laws 1986, | 0005| Chapter 112, Section 4, as amended) is amended to read: | 0006| "7-12A-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS | 0007| "TOBACCO PRODUCTS TAX"--DATE PAYMENT OF TAX DUE.-- | 0008| A. For the manufacture or acquisition of tobacco | 0009| products in New Mexico for sale in the ordinary course of | 0010| business, there is imposed an excise tax at the rate of | 0011| ~~[twenty-five]~~ forty-five percent of the product value of | 0012| the tobacco products. | 0013| B. The tax imposed by Subsection A of this section | 0014| may be referred to as the "tobacco products tax". | 0015| C. The tobacco products tax shall be paid by the | 0016| first purchaser on or before the twenty-fifth day of the month | 0017| following the month in which the taxable event occurs." | 0018| Section 6. EFFECTIVE DATES.-- | 0019| A. The effective date of the provisions of | 0020| Sections 2 and 3 of this act is August 1, 1998. | 0021| B. The effective date of the provisions of | 0022| Sections 1, 4 and 5 of this act is July 1, 1998. | 0023| |