Oct 21, 2024
NEW MEXICO (KRQE) – Should New Mexico raise its alcohol taxes? That's a question New Mexico lawmakers are considering ahead of the 60-day legislative session coming up this winter. On Friday, experts from the University of New Mexico (UNM) and Boston University told lawmakers the benefits of raising taxes. However, some lawmakers were strongly opposed to the idea and made their opinions known. Story continues below News: Chaves County, Roswell face intense flooding; 2 reported dead Events: What’s happening around New Mexico October 18-24 Trending: From local gem to crime hotspot: Tewa Lodge will be closing after shooting "We can all agree on here, on this body, on this legislature, that we recognize the effects alcohol has had in New Mexico, on our citizens," said Rep. Derrick Lente (D-Sandia Pueblo). Graph after graph in the presentations to lawmakers highlight the damaging and fatal effects of alcohol use and abuse in New Mexico. "New Mexico leads the nation in the number of those deaths per 100,000 people," said David Jernigan, Ph.D., with the Department of Health Law, Policy and Management at the Boston University School of Public Health. Right now, New Mexico's alcohol tax is a flat rate—for instance, 41 cents per gallon of beer, 45 cents per liter of wine—and that amount has not kept up with inflation argued Jernigan: "Every year that there is inflation, which is almost every year, the alcohol industry gets a tax cut." According to Jernigan, studies show people who drink the most tend to be wealthier while those who are harmed the most by alcohol's negative effects are lower-income and marginalized communities. He cited other states that raised their taxes, including Maryland, Alaska, and Illinois, which saw alcohol consumption and related deaths decline. He said this would be a progressive tax, meaning it would be shouldered by higher-income people. "For lower-income people, the alcohol taxes are a win-win. They will fund primarily government services, and lower-income people are more likely to need and use those," Jernigan said. He recommended lawmakers increase taxes to at least keep up with inflation. "What will happen is that will make the prices higher, that will make people consume less, and that will reduce the negative consequences of alcohol," said Brady Horn, professor in the Department of Economics and at the Center for Alcoholism, Substance Use, and Addiction at UNM. Those negative consequences include increased crime, domestic violence, and traffic fatalities. However, some lawmakers pushed back on the idea: "You can't just isolate the single factor of taxes to alcohol consumption. There are many other factors," said Rep. Jason Harper, (R-Rio Rancho), "I don't appreciate using tax code to try to influence behaviors. I know some people here might disagree with me. But even if I did, this would be a terrible way to address our alcohol problem." Others were open to the idea arguing that lower-income communities are targeted by the alcohol industry: "The only way that we can do anything with regard to changing behavior is by raising the tax because otherwise the industry will continue to sell it at such low rates," said Sen. Antoinette Sedillo Lopez (D-Albuquerque). According to the presentation, New Mexico has had a more than 30% increase in the alcohol-related death rate since 2019.
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