SALT Report 2391 – Recently enacted legislation in New Mexico amends the liquor excise tax rates for small winegrowers who produce a certain amount of wine and amends the definition of “small winegrowers.”
Senate Bill 116 provides that a “small winegrower” is now defined as a winegrower that produces less than 1.5 million liters of wine in a year. This is an increase from the previous rate of 950,000 liters per year.
The new liquor excise tax rates for wine manufactured or produced by a small winegrower, as defined, and sold in New Mexico are as follows:
$0.10 per liter on the first 80,000 liters of wine sold,
$0.20 per liter of wine sold over 80,000 liters, but not over 950,000 liters,
$0.30 per liter of wine sold over 950,000 liters, but not over 1.5 million liters, and
$0.45 per liter of wine sold over 1.5 million liters
Additionally, if a winegrower transfers its wine to a wholesaler for distribution, the liability for payment of the liquor excise tax transfers to the wholesaler.
The provisions in this Bill are effective January 1, 2014.
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