SANTA FE, N.M. (KRQE) – Getting a six-pack at the grocery store or a glass of wine at your favorite bar may soon cost a little more. HB 417, a bill that would increase taxes on alcoholic beverages, cleared its first hurdle on Wednesday. New Mexico has not seen an alcohol tax increase in more than thirty years.
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The idea of raising the liquor tax has been debated in the Roundhouse before and sponsors are hoping this year it makes it across the finish line. A group of Democratic lawmakers are proposing a bill that would impose a 6% sales tax on alcohol saying they hope it would reduce the harms caused by alcohol in the state. “Is that we will see a change in consumption, we also know that many New Mexicans are struggling with addiction and dependency every day. They’re also navigating trauma,” said Rep. Micaela Cadena, (D-Mesilla).
Current taxes collected on alcohol go to the general fund and the DWI Fund. Under the new bill, the funds would go to two funds dedicated to addressing social issues related to alcohol, including the creation of a program focusing on helping tribal communities, something supporters agree with.
“Tribal behavioral health programs oftentimes don’t have the professional staff or resources to provide treatment and services so we need the funding that’s contained in this bill,” said Conroy Chino, Pueblos of Taos and Acoma.
“We also recognize the need for culturally appropriate services in the Tribal Alcohol Harms Alleviation program because we have a slightly higher percentage of veterans in the native communities,” said Dorothy Seaton, Veterans and Military Families Caucus.
However, some business advocates think the bill goes too far. “But unfortunately, at six percent this creates a giant bureaucracy with $3 million just for administration fees and it’s going to put us at an uncompetitive point,” said Ron Brown, a Rio Rancho business owner.
“This proposal places yet another financial burden on our businesses and consumers without providing a clear benefit as indicated in the FIR,” said Kristen Thomson, New Mexico Restaurant Association.
The bill also has some money for the University of New Mexico in order for them to do research on alcohol-related prevention and treatments. The bill passed its first committee Wednesday morning on a 6-4 vote.