{"id":48627,"date":"2026-02-16T14:35:03","date_gmt":"2026-02-16T21:35:03","guid":{"rendered":"https:\/\/www.newmexicopbs.org\/productions\/newmexicoinfocus\/?p=48627"},"modified":"2026-02-16T14:35:05","modified_gmt":"2026-02-16T21:35:05","slug":"another-year-another-setback-for-alcohol-tax-push","status":"publish","type":"post","link":"https:\/\/www.newmexicopbs.org\/productions\/newmexicoinfocus\/another-year-another-setback-for-alcohol-tax-push\/","title":{"rendered":"Another year, another setback for alcohol tax push"},"content":{"rendered":"\n<p>by Ted Alcorn, New Mexico In Depth<\/p>\n\n\n\n<p class=\"has-text-align-left has-background\" style=\"background-color:#8080801f\"><em><strong>This <a href=\"https:\/\/nmindepth.com\/2026\/another-year-another-setback-for-alcohol-tax-push\/\">story<\/a> was originally published at <a href=\"https:\/\/nmindepth.com\/\">New Mexico In Depth<\/a>, a NMPBS partner.<\/strong><\/em><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/www.newmexicopbs.org\/productions\/newmexicoinfocus\/wp-content\/uploads\/2026\/02\/Alcohol-aisle.jpg\" alt=\"A grocery store aisle with shelves stocked with various wines, spirits, and alcoholic beverages, featuring promotional signs and labeled product sections.\" class=\"wp-image-48630\" srcset=\"https:\/\/www.newmexicopbs.org\/productions\/newmexicoinfocus\/wp-content\/uploads\/2026\/02\/Alcohol-aisle.jpg 1920w, https:\/\/www.newmexicopbs.org\/productions\/newmexicoinfocus\/wp-content\/uploads\/2026\/02\/Alcohol-aisle-300x169.jpg 300w, https:\/\/www.newmexicopbs.org\/productions\/newmexicoinfocus\/wp-content\/uploads\/2026\/02\/Alcohol-aisle-1024x576.jpg 1024w, https:\/\/www.newmexicopbs.org\/productions\/newmexicoinfocus\/wp-content\/uploads\/2026\/02\/Alcohol-aisle-1536x864.jpg 1536w, https:\/\/www.newmexicopbs.org\/productions\/newmexicoinfocus\/wp-content\/uploads\/2026\/02\/Alcohol-aisle-24x14.jpg 24w, https:\/\/www.newmexicopbs.org\/productions\/newmexicoinfocus\/wp-content\/uploads\/2026\/02\/Alcohol-aisle-36x20.jpg 36w, https:\/\/www.newmexicopbs.org\/productions\/newmexicoinfocus\/wp-content\/uploads\/2026\/02\/Alcohol-aisle-48x27.jpg 48w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><figcaption class=\"wp-element-caption\">The alcohol department at a grocery store Albuquerque, NM in 2022. CREDIT: Adria Malcolm for New Mexico In Depth<\/figcaption><\/figure>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\"><\/div>\n<\/div>\n\n\n\n<p>A legislative effort to raise alcohol taxes and use the revenue to help tribes and Pueblos prevent and treat addiction stalled before it even began.<\/p>\n\n\n\n<p>Last week, its sponsors failed to convince a key committee their bill was \u201cgermane\u201d to the state budget, the focus of this year\u2019s 30-day legislative session.<\/p>\n\n\n\n<p>Rep. Joanne Ferrary, a Las Cruces Democrat and co-sponsor of the bill who recently <a href=\"https:\/\/www.organmountainnews.com\/rep-joanne-ferrary-will-not-seek-re-election-opening-nm-house-district-37-seat\/\">announced her retirement<\/a>, wrote off the loss by text message, with a dig at the top of her party. \u201cSomeday Leadership will smarten up and realize how negatively alcohol impacts our constituents\u2019 lives and decide to change the environment that promotes drinking.\u201d<\/p>\n\n\n\n<p>Faced with a crisis of excessive alcohol consumption that kills <a href=\"https:\/\/nmindepth.com\/2026\/back-to-the-bottle-lawmakers-renew-alcohol-tax-push-as-deaths-remain-high\/\">around 1,800 New Mexicans annually<\/a>, Democrats have sought for four straight years to increase alcohol tax rates, which diminish with inflation and <a href=\"https:\/\/public.flourish.studio\/visualisation\/20978244\/\">are at their lowest point in a generation<\/a>. In each successive effort, lawmakers have pared back their ambitions in hopes of mollifying opposition by businesses that profit from alcohol sales, including brewers, distributors, and restaurants.<\/p>\n\n\n\n<p>But in a Legislature where Democrats hold a commanding majority, the decisive roadblocks have been their own colleagues, including leaders who\u2019ve failed to make meaningful legislation a priority.<\/p>\n\n\n\n<p>In 2023, the sponsors made <a href=\"https:\/\/nmindepth.com\/2023\/how-a-25%C2%A2-per-drink-alcohol-tax-fell-apart\/\">an arithmetic error<\/a> during their negotiations that cost them most of their leverage. In 2024, <a href=\"https:\/\/nmindepth.com\/2024\/rift-between-democrats-dooms-this-years-alcohol-tax-push\/\">their own caucus divided<\/a> over whether to tax alcohol by volume or by price. Last year, having settled on a 6% sales tax, they watched <a href=\"https:\/\/nmindepth.com\/2025\/after-house-legislators-with-alcohol-ties-snuff-out-tax-hike-senators-sub-an-industry-approved-bill\/\">a lawmaker married to a liquor lobbyist<\/a> cast a pivotal vote to kill their bill. Twice, the Legislature passed face-saving penny-a-drink increases, <a href=\"https:\/\/nmindepth.com\/2025\/alcohol-tax-increase-dies-again\/\">both vetoed by Gov. Michelle Lujan Grisham<\/a>.<\/p>\n\n\n\n<p>This year the sponsors cut their demands in half, seeking to add a 3% tax to alcoholic beverages and deposit the revenues in a new Tribal Alcohol Harms Alleviation Fund, under the management of the Indian Affairs department.<\/p>\n\n\n\n<p>Unlike in the past when they mostly focused on navigating the bill through the House, the sponsors began this year in the Senate, where they believed they had the support of Majority Leader Peter Wirth for adding it to a comprehensive tax bill, according to co-sponsor Sen. Antoinette Sedillo Lopez, an Albuquerque Democrat.<\/p>\n\n\n\n<p>At a town hall in January, she projected optimism, telling the audience the bill did not need to be on the governor\u2019s \u201ccall\u201d for inclusion in the off-year session because it affected the state\u2019s budget. \u201cI didn\u2019t get a message on this bill but it\u2019s not necessary,\u201d she said.<\/p>\n\n\n\n<p>On the morning of February 3, however, at the mid-point of the session, the bill came before the Senate Committees\u2019 Committee to determine whether it was germane. The committee takes no public comment and as chaired this year by Albuquerque Democrat Sen. Mimi Stewart, who as Senate President Pro Tempore is effectively the leader of the Senate, does not allow bill sponsors to make a case for their bills, as in the past.<\/p>\n\n\n\n<p>Her staff said they are guided by a memo from the Legislative Council Service that states the \u201cprincipal purpose\u201d of an acceptable bill must be budgetary. But that is subject to interpretation. A bill is germane if its \u201cprincipal object is to assess and collect taxes,\u201d reads the memo, seemingly inclusive of raising alcohol taxes \u2014 but if it \u201ccreates a new program and then imposes a fee or tax to fund it,\u201d it is not germane. The creation of an Alcohol Tribal Harms Fund could be seen in that light.<\/p>\n\n\n\n<p>Was the bill\u2019s principal purpose raising alcohol tax rates, or spending the new revenues on prevention? Two years ago in another off-year legislative session, lawmakers in the House found similar bills admissible.<\/p>\n\n\n\n<p>But this year\u2019s Senate committee staff apparently thought differently, and the lawmakers didn\u2019t even discuss the alcohol tax bill in the public hearing, merely passing it over.<\/p>\n\n\n\n<p>Upon learning this, Sedillo-Lopez said she scrambled to get a message from Lujan Grisham to greenlight the bill, but did not get an immediate response from the governor\u2019s staff.<\/p>\n\n\n\n<p>To make it into the Senate\u2019s tax package, measures must be ruled germane and go through a committee hearing, according to Sen. Carrie Hamblen, a Democrat from Las Cruces who chairs the Senate Tax, Business and Transportation Committee. Committee members then work with legislative economists to craft a tax package that includes some of those bills.<\/p>\n\n\n\n<p>This year\u2019s tax package has already been passed by the tax committee, and its next stop is the Senate floor. Unless Sedillo Lopez received a message from the governor greenlighting the bill, Hamblen said, the tax bill could not be amended on the floor to include the alcohol tax increase, either.<\/p>\n\n\n\n<p>With a week left in the session, which ends at noon on February 19, there is little chance of alcohol taxes appearing again in the session. One of the bill\u2019s sponsors is already looking beyond 2026.<\/p>\n\n\n\n<p>\u201cNext 60-day session will bring new opportunities with a new Governor and mix of Legislators,\u201d Ferrary texted.<\/p>\n\n\n\n<p>Those opportunities may well hinge on who is elected. In response to a question in October about whether he supported raising alcohol taxes, a spokesperson for Democratic gubernatorial candidate Sam Bregman declined to comment.<\/p>\n\n\n\n<p>A spokesperson for his primary opponent, Deborah Haaland, who has <a href=\"https:\/\/www.facebook.com\/DebHaalandNM\/posts\/ive-been-sober-for-35-yearsmost-people-running-for-office-wouldnt-choose-to-spea\/1268776054618015\/\">often discussed her own recovery from alcohol addiction<\/a>, left the door open.<\/p>\n\n\n\n<p>\u201cDeb is keeping all options on the table.\u201d<\/p>\n\n\n\n<p><em>This story was originally published at <a href=\"https:\/\/nmindepth.com\/\">New Mexico In Depth<\/a>, a NMPBS partner.<\/em><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>by Ted Alcorn, New Mexico In Depth This story was originally published at New Mexico In Depth, a NMPBS partner. A legislative effort to raise alcohol taxes and use the revenue to help tribes and Pueblos prevent and treat addiction stalled before it even began. Last week, its sponsors failed to convince a key committee&hellip;<\/p>\n","protected":false},"author":51,"featured_media":48630,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10906],"tags":[10907],"class_list":["post-48627","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-partner-stories","tag-partner-stories"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Another year, another setback for alcohol tax push - New Mexico In Focus<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.newmexicopbs.org\/productions\/newmexicoinfocus\/another-year-another-setback-for-alcohol-tax-push\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Another year, another setback for alcohol tax push - New Mexico In Focus\" \/>\n<meta property=\"og:description\" content=\"by Ted Alcorn, New Mexico In Depth This story was originally published at New Mexico In Depth, a NMPBS partner. A legislative effort to raise alcohol taxes and use the revenue to help tribes and Pueblos prevent and treat addiction stalled before it even began. 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A legislative effort to raise alcohol taxes and use the revenue to help tribes and Pueblos prevent and treat addiction stalled before it even began. 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