New Mexico – Expanded Liquor Excise Tax and New Rate Schedule

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.

For Further Information

New Mexico State Legislature – Senate Bill 116, Laws 2013