A. A tax that may be identified as the "cigarette inventory tax" is imposed on a distributor that has in its possession tax-exempt stamps, tax-credit stamps or tax stamps, not affixed to packages of cigarettes, at the close of business on the day prior to the date on which an increase in the cigarette tax imposed by Section 7-12-3 NMSA 1978 is effective.

B. The cigarette inventory tax due from the distributor is calculated by multiplying the number of tax stamps not affixed to packages of cigarettes in the distributor's possession by the increase in the excise tax. Tax-exempt stamps and tax-credit stamps are not included in the calculation to determine the amount of cigarette inventory tax to be paid by a distributor.

C. The cigarette inventory tax is to be paid to the department on or before the twenty-fifth day of the month following the month in which the increase in the cigarette tax is effective.

History: 1978 Comp., § 7-12-3.1, enacted by Laws 1986, ch. 13, § 3; 1995, ch. 70, § 14; 2006, ch. 91, § 2; 2010 (2nd S.S.), ch. 5, § 4; 2019, ch. 270, § 40.

The 2019 amendment, effective July 1, 2019, provided that the cigarette inventory tax due from a distributor is calculated by multiplying the number of tax stamps not affixed to packages of cigarettes in the distributor's possession by the increase in the excise tax; in Subsection A, after "tax-credit stamps or tax stamps", deleted "whether or"; and in Subsection B, after "number of tax stamps", added "not affixed to packages of cigarettes".

The 2010 (2nd S. S.) amendment, effective July 1, 2010, after "possession of tax-exempt stamps", added "tax-credit stamps" and after "affixed to packages of cigarettes", deleted "on" and added "at the close of business on the day prior to"; and in Subsection B, in the second sentence, after "Tax-exempt stamps", added "and tax-credit stamps".

The 2006 amendment, effective May 17, 2006, in Subsection A, deleted the provision that the tax is measured by the quantity of cigarette stamps in the possession of a person who is required to affix stamps and provided that the tax is imposed on a distributor; in Subsection A, deleted the provision that the taxable event is the existence of an inventory of stamp; added a new Subsection B to provide for the calculation of the tax; and in Subsection C (formerly Subsection B), provided that the tax is to be paid in the month following the month the increase in the tax is effective.

The 1995 amendment, effective July 1, 1995, substituted "department" for "division" in Subsection B.