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Behavioral Health

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Legislators consider key questions on alcohol tax reforms

By Ted Alcorn, New Mexico In Depth | October 2, 2022

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.

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