The State imposes an excise tax for the privilege of selling, giving or consuming cigarettes in New Mexico (Section 7-12-3 NMSA 1978). The excise tax rate is ten cents ($0.10) for each cigarette sold, given or consumed in this State. 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 (Department). 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.
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 called for in Section 7-1-6.11 NMSA 1978.