Did you know that there is a new tax law on tobacco products being proposed in New Mexico? This isn't actually a new ruling, but an updated bill redefining "other dissolvable tobacco" on its scopes. Read this blogpost on CASAA.org about the new update on the HB428. It's been said that the new Mexico Tax would also cover electronic cigarettes.
"New Mexico: 53% tax on e-cigarettes, smokeless tobacco, and dissolvable tobacco (HB428)"
This updated bill(HB428) would greatly affect or would greatly increase state's taxes on "other tobacco products" from 25% to 53% of it's product value.Under this new law, "tobacco products" would be redefined -- thus including electronic cigarettes and other dissolvable tobacco into this updated ruling.
Sounds absurd right? Not only would it make electronic cigarettes more expensive, but it will also discourage or prevent alot of people(specially those who want to quit the habit) from switching to e-cigs - they would stay to smoking the more hazardous traditional cigar. We all know 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..
Those who strongly disagree with this new bill should call or write to members of the House Taxation and Ruling Community. For more information on this matter or perhaps a guide on what to do, you may refer to blog.casaa.org.
