NM governor leans against the beer tax - New Mexico - Brief Article

Modern Brewery Age, Feb 2, 2004

New Mexico Gov. Bill Richardson has said he is "leaning against" proposing an increase in the state tax on beer, wine and liquor as part of a tax package in this year's legislative session.

An increase in the New Mexico liquor excise tax is an option for raising additional revenues--to either offset tax cuts or to help pay for programs such as Medicaid.

During a special session of the Legislature last year, Richardson proposed a package of tax cuts and increases. One provision would have doubled or tripled the tax rate on beer, wine and liquor to generate an additional $72 million a year. The tax package died in the session, however. The liquor industry aggressively lobbied against the governor's proposed increase.

Richardson said he would consult with the Legislature before finishing his tax cut package. He also is waiting to see new projections of state revenue collections for next year. In explaining why he was leaning against a liquor tax increase, Richardson said, "I just don't want to tax people. I mean I'm a tax cut governor."

Last year, personal income taxes were lowered and a capital gains deduction was expanded. The reductions are estimated at $360 million a year when fully implemented in 2008.