Santa Fe Cigar Co.

14-28

On November 30, 2010, the Department assessed the Taxpayer for tobacco products tax and interest for the reporting periods between May 31, 2006, and December 31, 2009.  This assessment resulted from an audit done of the Taxpayer by the Department, which was completed on August 4, 2010.  The audit found that the Taxpayer was the first purchaser of tobacco products in New Mexico, and was therefore responsible for tobacco tax.  The Taxpayer argued that it had not changed its business practices since 2006, and an audit done at that time did not have the same result.  However, in the audit narrative of the the other audit, the Department noted that the Taxpayer was liable for tobacco products tax as a first purchaser from two of the three vendors considered.  Moreover, these were two separate audits of two different time periods,  and the assessment was done correctly.  The Taxpayer’s protest was denied.