SANTA FE, N.M. – Democratic state lawmakers secured their first approval Wednesday on a bill that would add a new 6% sales tax on all alcoholic drinks.

A $10 drink would cost you an extra 60 cents, and they say that’s a small price to pay for a whole lot of good.

“It’s so important that we do this now for the future generations of our state,” said state Rep. Joanne Ferrary.  

Democratic state representatives Joanne Ferrary and Micaela Lara Cadena say their plan to increase New Mexico’s alcohol taxes, and by extension the cost is meant to save lives.

Nearly 1,900 New Mexicans died from alcohol in 2023, nearly three times the national average that year, and those rates are even higher in Native communities.

“What we’re hoping, and what chair Ferrary has championed over many years now, is that we will see a change in consumption,” said Cadena, 

Their proposal would maintain the state’s current alcohol excise taxes, redirecting the roughly $50 million in revenue to local alcohol alleviation programs, and their proposed 6% sales tax would generate new revenue for alcohol and substance abuse research, and for the state’s Indian Affairs Department.

“New Mexico is demonstrating our values to actually consider where harm is the greatest and where we can send money to those that know what to do with it,” Cadena said. 

But alcohol is not the only substance state lawmakers are focused on this year.

“Nicotine is the gateway to addiction,” said state Sen. Martin Hickey. 

Doctor and Sen. Hickey says that’s especially true for New Mexico’s teens. Data from the American Heart Association shows at least 25% of New Mexico high schoolers and at least 14% of middle schoolers are vaping nicotine.

Hickey says that’s a ticking time bomb.

“You not only are getting addicted to it for the moment, but you are also potentially developing pathways when you are older in life that make you potentially more likely to use alcohol or other drugs,” said Hickey. 

He’s asking state lawmakers to increase the taxes on e-cigarettes and other nicotine products like ZYN pouches to hopefully decrease consumption.

He’s pitching a 40% wholesale tax on those nicotine products, leaving traditional cigarettes and cigars alone for now.

“This bill really goes after those nicotine delivery systems, because the kids are most susceptible. The marketing is directly to the kids,” said Hickey. “We need to keep the kids from starting that addiction pathway.” 

Legislative reports on both bills says there is data showing increased prices on alcohol and tobacco products does reduce consumption, but it’s hard to predict how these specific tax increases will impact New Mexico.

Both bills are moving forward, but we’ll see if those specific tax increases stay where they are. There’s usually a lot of back-and-forth over tax proposals, and there may be compromises down the road.