Cigarette Tax 

The State imposes an excise tax for the privilege of selling, giving or consuming cigarettes in New Mexico (Section 7-12-3 NMSA 1978).  Certain exemptions and deductions apply. A New Mexico cigarette stamp affixed to the package is evidence that the distributor, seller or consumer is in compliance.

Persons distributing or manufacturing cigarettes in New Mexico must be licensed by the New Mexico Taxation and Revenue Department (TRD). Only licensed distributors may buy New Mexico cigarette stamps and affix them to packages of cigarettes. Each location where the applicant distributes or manufactures cigarettes must hold a Department-issued license that is renewed annually. You must pay a license fee of $100 for each distributor's or manufacturer's license at the time of application. The license fee applies to every license issued or renewed. If we deny your license, we refund all fees. Members of an Indian nation, tribe, or pueblo who operate on the Indian nation, tribe, or pueblo of which they are a member are not required to be licensed.

 

Whenever the cigarette tax is increased, a cigarette inventory tax is imposed on any distributor in possession of New Mexico cigarette stamps at the time of the increase, whether or not the stamps are affixed to packages.


Effective July 1, 2010, the excise tax on cigarettes is $1.66 per pack if the cigarettes are packaged in lots of 5, 10, or 20, and $2.075 if the cigarettes are packaged in lots of 25. Manufacturers submit monthly inventory reports of unstamped cigarette packages distributed or sold, using form RPD-41311, Cigarette Manufacturer’s Monthly Report. Distributors submit monthly reports of inventories of cigarettes including distributions and sales of packages, using form RPD-41315, Cigarette Distributor’s Monthly Inventory Report. There are other reports and schedules necessary to support the reporting requirements. All are due by the twenty-fifth day of the month following the end of the reporting month.

Members of an Indian nation, tribe, or pueblo that has enacted a cigarette tax that the department has determined is a qualifying tribal cigarette tax under Section 7-12-2 NMSA 1978 are eligible to receive cigarettes with affixed tax credit stamps. The listing of those members eligible to receive the tax credit stamp is found on the page Cigarette Tax Credit Stamp Listing.We deposit the revenues in the Tax Administration Suspense Fund and distribute them as follows:

 

 

  • to the cancer center at the university of New Mexico school of medicine, .83%;
  • to the New Mexico finance authority, 1.25%;
  • to the New Mexico finance authority on behalf of and for the benefit of the university of New Mexico health sciences center, 8.89%;
  • to the New Mexico finance authority for improvements to department of health facilities, 3.74%;
  • to the New Mexico finance authority for deposit in the credit enhancement account, 9.77%;
  • to the New Mexico finance authority for the rural county cancer treatment fund, .62%; and the remainder to the general fund. 

 

 

Contact Information

New Mexico Taxation and Revenue Department
Cigarette Tax Unit
P.O. Box 25123
Santa Fe, NM  87504-5123
For assistance, call (505) 827-6842
Or for tax return help, email us at OtherTaxes@state.nm.us

 

Links

Manage your account online  
Who Must Register?
Forms
Bulletins
Cigarette Tax Credit Stamp Listing
Tobacco Product Compliance Information (Attorney General’s Office)
Tobacco Manufacturers Directory (Attorney General’s Office)
Statutory Reference: Look for Chapter 7, Article 12 NMSA 1978 in the New Mexico State Statutes.

 

 

 

 

 

 

Frequently Asked Questions

Q. How are cigarette stamps delivered?

Answer:
You can pick up cigarette stamps or they may be shipped using UPS, Fed-Ex or the United States Postal Service. Effective July 1, 2010, the Department no longer provides UPS ground shipping free of charge. When completing Form RPD-41158, Purchase Order for New Mexico Cigarette Stamps, you will indicate the method of delivery. If requesting delivery by courier or mail, provide the Department with a shipper number or payment for the postage.

Q. When is payment due for stamp purchases?

Answer:
If you have pre-approval (requires a surety bond) from the Department, you may pay by the 25th of the month following the month in which the cigarette stamp purchase was made. If you do not have pre-approval, the payment is due upon receipt of the stamps.

Q. What is the deadline for ordering stamps?

Answer:
Orders received after 2:00 p.m. are processed the next business day.

Q. Why are negative numbers not allowed on the Cigarette Distributor’s Monthly Inventory Report or its schedules?

Answer:
To correctly complete Form RPD-41315, Cigarette Distributor’s Monthly Inventory Report, do not report negative amounts either on the form or on its schedules. A common reason for reporting negative numbers is entering incorrectly the number of cigarette packs returned. To avoid the problem, report returned packs on Schedule B. If the cigarette packs are destroyed or returned to the manufacturer, report them on Schedule C under the distributed code “L”.

Q. How do I change my registration information?

Answer:
Use Form ACD-31075, Business Tax Registration Update  to make changes. Click instructions for Form ACD-31075 to see instructions for completing the form to the following address:  Special Tax Programs & Services, PO Box 25123, Santa Fe, NM 87504-05123
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