Wednesday, March 24, 2010

Governor Bill Richardson Signs Legislation for 75 Cent per Pack Cigarette Tax Increase


New Mexico Governor Bill Richardson took a major step forward in protecting New Mexico's children from tobacco-related addiction and disease when he signed into law House Bill 3, a bill passed during the recent special session, increasing the tax on cigarettes by 75 cents per pack. The 75-cent increase brings New Mexico's tax to $1.66 per pack, ranking it 18th highest in the country and well above the current national average of $1.34 per pack.

House Bill 3, sponsored by Representatives Gail Chasey and Danice Picraux in the House of Representatives and Senators Dede Feldman and Mary Jane Garcia in the Senate, was the last bill passed during the 2010 special session.

The American Cancer Society Cancer Action Network, the advocacy affiliate of the American Cancer Society, along with the American Lung Association, American Heart Association, Campaign for Tobacco Free Kids and New Mexicans Concerned About Tobacco championed the cigarette tax increase in New Mexico to provide current smokers an incentive to quit and to prevent youth from starting to smoke.

Currently in New Mexico, an estimated 279,000 adults and 22,000 youth smoke. Research has consistently shown that every 10 percent increase in price of cigarettes reduces youth smoking by 7 percent and cuts overall consumption by about 4 percent.

The increased tax will generate about $33 million in revenue for the state in the first year. The revenue from the tax increase will be directed to help offset cuts to various programs such as education, early childhood education, Medicaid, and other health services funded by the state's general fund.