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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 the TAP online filing system. 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.

Cigarette Tax Forms and Documents

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