INCREASE TOBACCO PRODUCTS TAX

SB 121 increases New Mexico's tobacco products tax rate from 25% to 40% on most tobacco products, including e-cigarettes and e-liquids. The bill directs 35% of the additional tax revenue to a new "Nicotine Use Prevention and Control Fund" administered by the Department of Health. This fund will finance youth-focused prevention programs, educational materials, and advertising for people aged 5-25, in collaboration with education departments. The tax hike directly affects tobacco manufacturers, retailers, and consumers through higher prices on products like cigarettes, cigars, e-cigarettes, and e-liquids.