SANTA FE, N.M. (KRQE) – A state Senate committee is expected to discuss a new liquor tax law on Friday. Should Senate Bill 85 pass, it would let all New Mexico counties put a local excise tax on liquor.
An excise tax is an extra tax built into the price of the product that is separate from a sales tax. However, to go into effect, it would have to be passed by a majority of voter approval.
Right now, only McKinley County has this kind of excise tax, bringing in an average of $1.3 million a year.