Saturday, March 2, 2013

Call to Action! New Mexico Tax on E-Cigarettes -- HB428 (UPDATED)

New Mexico: 53% tax on e-cigarettes, smokeless tobacco, and dissolvable tobacco (HB428)

Link to HB428

This bill would:

HB428 would redefine "tobacco product" under New Mexico law to include e-cigarettes and dissolvable tobacco. HB428 would also increase increase the state’s tax on "other tobacco products" (including e-cigarettes, smokeless tobacco, and dissolvable tobacco) from 25% to 53% of product value. 

UPDATE (3/2/2013): On Friday, March 1st, the House Taxation & Revenue Committee voted unanimously to amend HB428 so that it would NOT tax e-cigarettes.  Most striking is that a representative from the American Cancer Society agreed with the amendment.  The Committee then voted 8-7 to table the increase in the smokeless tobacco tax.

CASAA would like to thank its members who responded to this Cal to Action. 

UPDATE (2/28/2013): HB428 passed out of the House Health, Government & Indiana Affairs Committee this week. It will have a hearing before the House Taxation & Revenue Committee on Friday, March 1st at 1:30 p.m. MST (3:30 p.m. EST).  CASAA is strongly urging its members to take action against this bill. 

Please call or write the members of the House Taxation & Revenue Committee below:

What to say:

1. You oppose HB428 because it would redefine the state's definition of "tobacco product" to include new life-saving products like electronic cigarettes. 

2. Tell your story on how switching to an e-cigarette or smokeless tobacco has changed your life.

3. Explain that the purpose of increasing cigarette taxes has been to cover governmental healthcare expenditure caused by smoking and to discourage smoking. But since electronic cigarettes and dissolvables are 98-99% less hazardous than cigarettes, there is no fiscal or public health justification for such a hefty tax.

4. Since many/most e-cigarette sales are made online, enactment of this legislation would devastate brick-and-mortar e-cigarette retailers in NM and destroy e-cigarette companies in NM, as they could no longer compete against out-of-state and international online suppliers.

5. Many smokers who switch to less hazardous electronic cigarettes do so because e-cigarettes are less expensive than cigarettes. Increasing the costs of e-cigarettes to that of cigarettes would discourage many smokers from switching to e-cigarettes. It could also encourage some e-cigarette consumers to go back to cigarette smoking.

Phone numbers and other contact information for members of the House Taxation and Revenue Committee can be found here.

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Mark the X Smoker said...

I'm not from Mexico but I kinda pity them if this law passes. More than double tax increase is simply insane! Btw, is it only people in Mexico that is allowed to request a petition?

Kind Regards,
Mark Jenkins
Our Site

chris houtman said...

a common misconception Mark, New Mexico is a state... and part of the U.S.A. if you look on a map between Texas and Arizona there we are. as such feel free to petition our legislators, it will carry the same weight as any out of stater, oh and don't worry we all speak English as our first language though many also have some Spanish as well.