PCA

New Mexico

Alerts & Updates

Key Contacts

New Mexico Taxation and Revenue Department
Cigarette Tax Unit
(505) 827-6842

New Mexico Secretary of State
Bureau of Elections
(505) 827-3600
(505) 827-8403 fax

PCA Contacts

Joshua Habursky
Glynn Loope joshua@premiumcigars.orgglynn@premiumcigars.org

Legislative Information

2019 Session Info
2019 Partisan Splits

Taxation

New Mexico imposes a tobacco product tax on the manufacture or acquisition of tobacco products in New Mexico that are intended for distribution in the ordinary course of business and for the consumption of tobacco products in the state.

N.M. Stat. § 7-12A-3: Imposition and rate of tax; denomination as “tobacco products tax;” date payment of product due

The New Mexico Statutes contain no specific provision relating to the authority of localities to levy additional taxes on tobacco products. Taxation and Revenue Department staff could not confirm whether localities can levy additional taxes on tobacco products, and staff recommended that interested parties contact the applicable county.

New Mexico HB 6 (2019) states that for the privilege of selling, giving or consuming cigarettes in New Mexico, there is levied an excise tax at a rate of $0.10 for each cigarette sold, given or consumed in this state. 

This measure states that for the privilege of engaging in business to manufacture acquire or distribute tobacco in the ordinary course of business and for the products privilege of consuming tobacco products in New Mexico, there is imposed an excise tax at the rate of 45% of the product value of the tobacco products. 

This measure defines “qualifying tribal cigarette tax” as an excise, privilege or similar tax at a minimum rate of: 

  1. 1) $.0545 per  cigarette if the cigarettes are packaged in lots of twenty or twenty-five;
  2. $.109 per cigarette if the cigarettes are  packaged in lots of ten; or
  3. $.218 per cigarette if the cigarettes are packaged in lots of five.

New Mexico HB 6 (2019)

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.

N.M. Stat. § 7-12A-3(a): Imposition and rate of tax; denomination as “tobacco products tax;” date payment of tax due

Persons manufacturing or acquiring tobacco products in New Mexico for distribution in the ordinary course of business are required to file a Tobacco Products Tax Return (Form RPD-41192) on or before the 25th day of each month, along with payment for taxes due. 

N.M. Stat. § 7-12A-3(c): Imposition and rate of tax; denomination as “tobacco products tax;” date payment of tax due

Tax filings can be submitted to the Taxation and Revenue Department online through the Taxpayer Access Point.

Form Type / NameForm Number / Link
New Mexico Taxation and Revenue Department: Tobacco Products TaxTobacco Products Tax
New Mexico Taxation and Revenue Department: Forms & PublicationsForms & Publications

Cigar and Smoking Tobacco Definitions

“Smoking” means inhaling, exhaling, burning, carrying, or holding any lighted tobacco product, including all types of cigarettes, cigars, and pipes, and any other lighted tobacco product.

N.M. Stat. § 24-16-3(n)

“Tobacco product” means any product, other than cigarettes, made from or containing tobacco.

N.M. Stat. § 7-12A-2(g)

“Distribute” means to sell or to give.

N.M. Stat. § 7-12A-2(b)

“First purchaser” means a person engaging in business in New Mexico who manufactures tobacco products or who purchases or receives on consignment tobacco products from any person outside of the state, which tobacco products are to be distributed in New Mexico in the ordinary course of business.

N.M. Stat. § 7-12A-2(d)

“Engaging in business” means carrying on or causing to be carried on any activity with the purpose of direct or indirect benefit.

N.M. Stat. § 7-12A-2(c)

“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.

N.M. Stat. § 7-12A-2(f)

Restrictions

Smoking is prohibited near entrances, windows and ventilation systems of all workplaces and public places where smoking is prohibited by the Dee Johnson Clean Indoor Air Act.  An individual who owns, manages, operates or otherwise controls the use of premises subject to the provisions of the Dee Johnson Clean Indoor Air Act shall establish a smoke-free area that extends a reasonable distance from any entrances, windows and ventilation systems to any enclosed areas where smoking is prohibited. The reasonable distance shall be a distance sufficient to ensure that persons entering or leaving the building or facility shall not be subjected to breathing secondhand smoke and to ensure that secondhand smoke does not enter the building or facility through entrances, windows, ventilation systems or any other means.

N.M. Stat. § 24-16-4(c): Smoking prohibited

N.M. Stat. § 24-16-13: Prohibition of smoking near entrances, windows, and ventilation systems

N.M. Stat. § 24-16-3: Definitions

New Mexico HB 256 (2019) amends the Dee Johnson Clean Indoor Air Act to include E-cigarettes.

To advise persons of the existence of smoke-free areas or smoking-permitted areas, signs must be posted as follows:

  • For each indoor workplace or indoor public place where smoking is prohibited, a “NO SMOKING” sign shall be posted where it is clear, conspicuous and easily legible at each public entrance.  Posting of “NO SMOKING” signs is the responsibility of the owner, operator, manager, or other person having control of the indoor workplace or indoor public place.
  • For each indoor workplace or indoor public place where smoking is permitted, a “SMOKING PERMITTED” sign shall be posted where it is clear, conspicuous and easily legible at each public entrance, unless an owner, operator, or manager chooses to prohibit smoking in all or part of an indoor workplace or indoor public place where smoking is otherwise permitted.

Posting of signs is not required at a residence, except during the hours of business operation while it is being used commercially to provide childcare, adult care, or health care, or any combination of those activities.

N.M. Stat. § 24-16-15: Posted smoke-free and smoking-permitted areas

Nothing in state law preempts or in any manner precludes specific provisions of a county or municipal smoking ordinance, provided that the smoke-free provisions of such a county or municipal ordinance are inclusive of all minimum standards and provisions for smoke-free areas within state law.

N.M. Stat. § 24-16-20: Explicit non-preemption

The following are exempt from the ban on smoking, subject to conditions:

  • a private residence, unless it is used commercially to provide childcare, adult care or health care or any combination of those activities;
  • a retail tobacco store; provided that, for a retail tobacco store established on or after the effective date of this 2019 act, the store shall be located in a standalone building;
  • a cigar bar; provided that, for a cigar bar established on or after the effective date of this 2019 act, the bar shall be located in a standalone building;
  • the facilities of a tobacco manufacturing company licensed by the United States to manufacture tobacco products that are operated by the company in its own name and that are used exclusively by the company in its business of manufacturing, marketing or distributing its tobacco products; provided that secondhand smoke does not infiltrate other indoor workplaces or other indoor public places where smoking is otherwise prohibited under the Dee Johnson Clean Indoor Air Act;
  • a state-licensed gaming facility, casino or bingo parlor;
  • designated outdoor smoking areas;
  • private clubs;
  • hotel and motel rooms that are rented to guests and are designated as smoking-permitted rooms; provided that not more than ten percent of rooms rented to guests in a hotel or motel may be so designated;
  • a site that is being used in connection with the practice of cultural or ceremonial activities by Native Americans and that is in accordance with the federal American Indian Religious Freedom Act, 42 U.S.C. 1996 and 1996a; and
  • a theatrical stage or a motion picture or television production set when it is necessary for performers to smoke as part of the production.

N.M. Stat. § 24-16-12: Smoking-permitted areas

N.M. Stat. § 24-16-3: Definitions

New Mexico law does not provide a specific application procedure to qualify for exemption from the smoking ban. Localities may have specific requirements.

Individuals under 18 years of age cannot procure, attempt to procure, or present any written, printed, or photostatic evidence of age or identity that is false for the purpose of procuring or attempting to procure any tobacco products for their own use or for use by any other minor. Similarly, it is illegal for any person to sell, offer to sell, barter, or give any tobacco product to any minor. A person selling goods at retail or wholesale may refuse to sell tobacco products to a person who is unable to provide an identity card as evidence that the person is 18 years of age or older.

Department of Workforce Solutions, Child Labor Section staff reported that the minimum age for employment is 14 but recommended that tobacco retail stores employees be at least 19 years of age.

N.M. Stat. § 30-49-3: Tobacco; prohibited sales

N.M. Stat. § 30-49-5: Refusal to sell tobacco products, e-cigarettes or nicotine liquid containers to a person unable to produce identity card

N.M. Stat. § 30-49-6: Presenting false evidence of age or identity

Tobacco products may be sold by vending machines in the following locations only:

  • In locations not held open to the public, including controlled areas within factories, businesses, and offices
  • In locations in which the vending machine is equipped with a remote-controlled lock-out device, or
  • In age-controlled locations where minors are not permitted unless accompanied by a parent or guardian

N.M. Stat. § 30-49-7(b): Vending machines; restrictions on sales of tobacco products

A person, firm, corporation, partnership or other entity engaged in the sale at retail of tobacco products must prominently display in the place where tobacco products are sold and where a tobacco product vending machine is located, a printed sign or decal that reads as follows:

“A PERSON LESS THAN 18 YEARS OF AGE WHO PURCHASES A TOBACCO PRODUCT IS SUBJECT TO A FINE OF UP TO $100.

A PERSON WHO SELLS A TOBACCO PRODUCT TO A PERSON LESS THAN 18 YEARS OF AGE IS SUBJECT TO A FINE OF UP TO $1,000.”

N.M. Stat. § 30-49-9: Signs; point of sale

When a municipality or county adopts an ordinance or a regulation pertaining to sales of tobacco products, the ordinance or regulation must be consistent with the provisions of the Tobacco Products Act, E-Cigarette and Nicotine Liquid Container Act (N.M. Stat. § 30-49-1 to § 39-49-12).

N.M. Stat. § 30-49-11: Preemption

In New Mexico, it is illegal for a person who sells distributes, promotes, or advertises tobacco products to provide free samples of tobacco products to a minor. However, this prohibition does not apply to an individual who provides free samples of tobacco products in connection with the practice of cultural or ceremonial activities in accordance with the federal American Indian Religious Freedom Act.

 N.M. Stat. § 30-49-8: Distribution of tobacco products as free samples prohibited; exception

Tobacco products subject to the tobacco products tax and registration requirements include tobacco products acquired or manufactured and given for consumption. Tobacco products acquired to be given out as part of a promotion must be reported on the Tobacco Products Tax Return (Form RPD 41192).

When a municipality or county adopts an ordinance or a regulation pertaining to sales of tobacco products, the ordinance or regulation must be consistent with the provisions of the Tobacco Products Act (N.M. Stat. § 30-49-1 to § 39-49-12).

N.M. Stat. § 30-49-11: Preemption

Operating Your Business

Each person engaged in the business of selling tobacco products in New Mexico must register with the Taxation and Revenue Department by submitting an Application for Business Tax Identification Number (Form ACD-31015) and a Registration for Special Tax Programs (Form RPD 41218). Registration certificates are valid until terminated or revoked.

N.M. Stat. § 7-12A-7: Registration necessary to engage in the business of selling tobacco products in New Mexico

Persons manufacturing or acquiring tobacco products in New Mexico for distribution in the ordinary course of business are required to file a Tobacco Products Tax Return (Form RPD-41192) on or before the 25th day of each month, along with payment for taxes due. 

N.M. Stat. § 7-12A-3(c): Imposition and rate of tax; denomination as “tobacco products tax;” date payment of tax due

Registration forms and tax filings can be submitted to the Taxation and Revenue Department online through the Taxpayer Access Point. 

Cigar bars may allow smoking and drinking in their establishments if they:

  • are devoted to the selling or serving of alcoholic beverages for consumption by patrons on the premises and the serving of food is only incidental to the consumption of those beverages, and
  • are engaged in the business of selling cigars for consumption by patrons on the premises and generate 10% or more of their total annual gross revenue of at least $10,000 in annual sales from the sale of cigars, not including any sales from vending machines. A cigar bar that fails to generate at least 10% of its total annual sales from the sale of cigars in the calendar year after December 31, 2006, not including sales from vending machines, shall not be defined as a cigar bar and shall not thereafter be known as such regardless of sales figures.

Establishments that meet this definition must submit an Application for Cigar Bar Certification to:

Program Manager
Cigar Bar Certification
New Mexico Department of Health
5301 Central Avenue N.E., Suite 800
Albuquerque, New Mexico 87108

Localities may require additional business licenses.

Form Type / NameForm Number / Link
New Mexico Taxation and Revenue Department: Tobacco Products TaxTobacco Products Tax
New Mexico Taxation and Revenue Department: Forms & PublicationsForms & Publications

Political Involvement

A “lobbyist” is any individual who is compensated for the specific purpose of lobbying, is designated by an interest group or organization to represent it on a substantial or regular basis for the purpose of lobbying, or in the course of his employment is engaged in lobbying on a substantial or regular basis.

“Lobbyist” does not include:

  • an individual who appears on his own behalf in connection with legislation or an official action
  • any elected or appointed officer of the state or its political subdivisions or an Indian tribe or pueblo acting in his official capacity
  • an employee of the state or its political subdivisions, specifically designated by an elected or appointed officer of the state or its political subdivision, who appears before a legislative committee or in a rulemaking proceeding only to explain the effect of legislation or a rule on his agency or political subdivision, provided the elected or appointed officer of the state or its political subdivision keeps for public inspection, and files with the secretary of state, such designation
  • any designated member of the staff of an elected state official provided the elected state official keeps for public inspection and files with the secretary of state such designation
  • a member of the legislature, the staff of any member of the legislature or the staff of any legislative committee when addressing legislation
  • any witness called by a legislative committee or administrative agency to appear before that legislative committee or agency in connection with legislation or an official action
  • an individual who provides only oral or written public testimony in connection with a legislative committee or in a rulemaking proceeding and whose name and the interest on behalf of which he testifies have been clearly and publicly identified, or
  • a publisher, owner or employee of the print media, radio or television, while gathering or disseminating news or editorial comment to the general public in the ordinary course of business

N.M. Stat. § 2-11-2(e)

“Lobbying” means attempting to influence:

  • a decision related to any matter to be considered or being considered by the legislative branch of state government or any legislative committee or any legislative matter requiring action by the governor or awaiting action by the governor, or
  • an official action

N.M. Stat. § 2-11-2(d)

“Lobbyist’s employer” means the person whose interests are being represented and by whom a lobbyist is directly or indirectly retained, compensated, or employed.

N.M. Stat. § 2-11-2(f)

“Official action” means the action or nonaction of a state official or state agency, board or commission acting in a rulemaking proceeding.

N.M. Stat. § 2-11-2(g)

An “expenditure” is a payment, transfer or distribution or obligation or promise to pay, transfer or distribute any money or other thing of value but does not include a lobbyist’s own personal living expenses and the expenses incidental to establishing and maintaining an office in connection with lobbying activities or compensation paid to a lobbyist by a lobbyist’s employer.

N.M. Stat. § 2-11-2(b)

In the January prior to each regular session or before any service covered by the Lobbyist Regulation Act commences, any individual who is initially employed or retained as a lobbyist must register with the Secretary of State by filing a single Lobbyist Registration Form under oath and by submitting an annual filing fee of $25.00, a Lobbyist Authorization Form, and a Supplemental Lobbyist Registration Form for each of the lobbyist’s employers. Lobbyist renewals will be mailed each December.

N.M. Stat. § 2-11-3(a): Registration statement to be filed; modification to statement

Each lobbyist or lobbyist’s employer who makes or incurs expenditures or political contributions for the benefit of or in opposition to a state legislator or candidate for the state legislature, a state public officer or candidate for state public office, a board or commission member or state employee who is involved in an official action affecting the lobbyist’s employer or in support of or in opposition to a ballot issue or pending legislation or official action must file expenditure reports with the Secretary of State according to the following schedule:

  • By January 15th for all expenditures and political contributions made or incurred during the preceding year and not previously reported
  • Within 48 hours for each separate expenditure made or incurred during a legislative session that was for $500 or more, and
  • By May 1st for all expenditures and political contributions made or incurred through April 25th of the current year and not previously reported.

Reports may be submitted online through the New Mexico Campaign Finance Information System. 

N.M. Stat. § 2-11-6: Expenditure report to be filed; contents; reporting periods

Form Type / NameForm Number / Link
Lobbyist Regulation ActLobbyist Regulation Act
New Mexico Secretary of State: Lobbyist FormsLobbyist Forms
Lobbyist Registration FormRegistration Form
Lobbyist Authorization FormAuthorization Form
Lobbyist Supplemental FormSupplemental Form
New Mexico Campaign Finance Information System (CFIS)CFIS

Shipping Regulations

New Mexico does not have any specific restrictions concerning the shipping of tobacco products to consumers. 

Each person engaged in the business of selling tobacco products in New Mexico must register with the Taxation and Revenue Department by submitting an Application for Business Tax Identification Number (Form ACD-31015) and a Registration for Special Tax Programs (Form RPD 41218). Registration certificates are valid until terminated or revoked.

N.M. Stat. § 7-12A-7: Registration necessary to engage in the business of selling tobacco products in New Mexico

Additional information about licensing in New Mexico is available under the Operating Your Business and Definitions tabs above.

New Mexico does not have any specific age verification requirements for the shipping of tobacco products to consumers. However, New Mexico has specific age verification requirements for internet sales of e-cigarettes or nicotine liquid containers. 

N.M. Rev. Stat. § 30-49-3(E): Tobacco products, e-cigarettes, and nicotine liquid containers; prohibited sales

The product value of tobacco products sold and shipped or given and shipped to a person in another state may be deducted from the product value subject to the tax imposed by the Tobacco Products Tax Act, provided that the Department of Taxation and Revenue may require the person to submit proof satisfactory to the Department that the tobacco products have been sold and shipped or given and shipped to a person in another state.

N.M. Rev. Stat. § 7-12A-5: Deduction; interstate sales

Additional information about taxation in New Mexico, including information about tax rates, filings, and forms, is available under the Taxation and Definitions tabs above.

Disclaimer: PCA believes the information on this site is accurate. However, tobacco laws and regulations are subject to frequent change and court interpretation. Statements above are not intended as legal advice or restatement of law. PCA does not guarantee or assume responsibility for the accuracy, completeness or timeliness of this information, nor that this information complies with all federal laws or the laws of all 50 states. Parties acknowledge and agree it is not the intention of PCA to provide specific legal advice for particular individuals, but rather to provide users with general information to better understand these issues. Users shall neither construe any of these materials as legal advice nor make this site the primary basis for any legal decisions made by or on your behalf and agree to release and waive any claims against PCA for the same. You shall consult with legal advisors concerning any contemplated individual decision.