LIQUOR TAX CHANGES

SB 217 modifies New Mexico's liquor excise tax system. It imposes a new surtax on liquor retailers and redirects the revenue to create a dedicated Tribal Alcohol Harms Alleviation Fund, which will receive 5% of liquor excise tax revenue starting July 2019. The bill also amends definitions to exclude liquor excise taxes from the calculation of "gross receipts" for other state taxes. This directly affects liquor retailers (through the surtax), tribal governments (receiving new funding), and local governments (which will see adjusted allocations for alcohol treatment services and drug courts). The changes are purely procedural, reallocating existing tax revenue streams rather than creating new taxes or services.