The local liquor excise tax is imposed on retailers who sell alcoholic beverages or possess them for sale in a New Mexico county or municipality that elects to impose the tax. Currently, McKinley County is the only county in New Mexico that has elected to impose the local liquor excise tax. The McKinley County tax rate is 5% of the price that the retailer paid for the alcoholic beverages.
Retailers pay this tax using form RPD-41277, Local Liquor Excise Tax Return. The local liquor excise tax is due on or before the 25th day of the month following the month in which the purchase occurs.