Legislators consider key questions on alcohol tax reforms

Lawmakers concerned about New Mexico’s worst-in-the-nation rate of alcohol-related deaths are focused on revising how the state taxes alcohol. Last month, the Legislative Health & Human Services Committee chose an alcohol tax increase as one of its top priorities for 2023 and next week, another committee will hear tax experts present on the topic. Several top lawmakers agree the state’s alcohol taxes should be higher but they don’t know how much to increase them, whether to change how the taxes are levied, and what to do with the revenues raised. “Everyone needs to understand the landscape before we have a serious conversation about how it should be changed,” said Rep. Christine Chandler, D-Los Alamos, who chairs the Revenue Stabilization and Tax Policy Committee that meets next Thursday and Friday. Like many states, New Mexico taxes alcohol wholesalers a fixed amount per volume of beverage they sell to retailers, who raise prices on consumers to cover the upcharge.

Lawmakers say alcohol on 2023 session agenda

Powerful state lawmakers are signaling their desire to address New Mexico’s worst-in-the-nation rate of alcohol-related deaths in the upcoming session, including by changing how alcohol is taxed. Sen. George Muñoz, D-Gallup, chair of the influential Senate Finance Committee, said he supports raising statewide alcohol taxes, among the most effective measures for curbing excessive drinking. Senate President Pro Tem Mimi Stewart, D-Albuquerque, agreed the state’s rates “are probably not at the level they need to be,” and raising them “should be part of the solution” to the state’s alcohol crisis. Rep. Patricia Lundstrom, D-Gallup, chair of the House committee that crafts the state budget, acknowledged “we do not have the balance right” between businesses that profit from selling alcohol and people harmed by consuming it and said in the coming session she expected “legislation to come through that is going to cost money.”

In August, lawmakers on health, criminal justice, and economic committees voiced concern about New Mexico’s alcohol problems. Many attributed the flurry of interest to a New Mexico In Depth investigative series, which showed the state’s alcohol-related death rate has risen continuously for decades and is far above any other state’s. “I really didn’t realize how bad we were on alcohol deaths until I read all of those articles,” said Stewart.

Blind Drunk

Alcohol is killing New Mexicans at a higher rate than anywhere else in the country — yet the state has largely neglected the growing crisis.

In this seven-part series, New Mexico In Depth investigates the state’s blind spots and shines a light on solutions.