A. There is imposed on a wholesaler who sells alcoholic beverages on which the tax imposed by this section has not been paid an excise tax, to be referred to as the "liquor excise tax", at the following rates on alcoholic beverages sold:

(1) on spirituous liquors, except as provided in Paragraph (9) of this subsection, one dollar sixty cents ($1.60) per liter;

(2) on beer, except as provided in Paragraph (5) of this subsection, forty-one cents ($.41) per gallon;

(3) on wine, except as provided in Paragraphs (4) and (6) of this subsection, forty-five cents ($.45) per liter;

(4) on fortified wine, one dollar fifty cents ($1.50) per liter;

(5) on beer manufactured or produced by a microbrewer and sold in this state, provided that proof is furnished to the department that the beer was manufactured or produced by a microbrewer, eight cents ($.08) per gallon on the first thirty thousand barrels sold, twenty-eight cents ($.28) per gallon for all barrels sold over thirty thousand barrels but less than sixty thousand barrels and forty-one cents ($.41) per gallon for sixty thousand or more barrels sold;

(6) on wine manufactured or produced by a small winegrower and sold in this state, provided that proof is furnished to the department that the wine was manufactured or produced by a small winegrower:

(a) ten cents ($.10) per liter on the first eighty thousand liters sold;

(b) twenty cents ($.20) per liter on each liter sold over eighty thousand liters but not over nine hundred fifty thousand liters; and

(c) thirty cents ($.30) per liter on each liter sold over nine hundred fifty thousand liters but not over one million five hundred thousand liters;

(7) on cider, except as provided in Paragraph (8) of this subsection, forty-one cents ($.41) per gallon;

(8) on cider manufactured or produced by a small winegrower and sold in this state, provided that proof is furnished to the department that the cider was manufactured or produced by a small winegrower, eight cents ($.08) per gallon on the first thirty thousand barrels sold, twenty-eight cents ($.28) per gallon for all barrels sold over thirty thousand barrels but less than sixty thousand barrels and forty-one cents ($.41) per gallon for sixty thousand or more barrels sold; and

(9) on spirituous liquors manufactured or produced by a craft distiller licensed pursuant to Section 60-6A-6.1 NMSA 1978, provided that proof is provided to the department that the spirituous liquors were manufactured or produced by a craft distiller, for products up to ten percent alcohol by volume, eight cents ($.08) per liter for the first two hundred fifty thousand liters sold and twenty-eight cents ($.28) per liter for the next two hundred fifty thousand liters sold and for products over ten percent alcohol by volume, thirty-two cents ($.32) per liter on the first one hundred seventy-five thousand liters sold and sixty-five cents ($.65) per liter on the next two hundred thousand liters sold.

B. The volume of wine transferred from one winegrower to another winegrower for processing, bottling or storage and subsequent return to the transferor shall be excluded pursuant to Section 7-17-6 NMSA 1978 from the taxable volume of wine of the transferee. Wine transferred from an initial winegrower to a second winegrower remains a tax liability of the transferor, provided that if the wine is transferred to the transferee for the transferee's use or for resale, the transferee then assumes the liability for the tax due pursuant to this section.

C. A transfer of wine from a winegrower to a wholesaler for distribution of the wine transfers the liability for payment of the liquor excise tax to the wholesaler upon the sale of the wine by the wholesaler.

History: 1978 Comp., § 7-17-5, enacted by Laws 1993, ch. 65, § 8; 1994, ch. 52, § 2; 1995, ch. 74, § 2; 1996, ch. 49, § 2; 1997, ch. 143, § 2; 2000, ch. 43, § 1; 2000 (2nd S.S.), ch. 8, § 2; 2008, ch. 82, § 2; 2013, ch. 94, § 2; 2013, ch. 95, § 2; 2019, ch. 229, § 2.

Repeals and reenactments. — Laws 1993, ch. 65, § 8 repealed former 7-17-5 NMSA 1978, as amended by Laws 1993, ch. 65, § 7, and enacted a new section, effective July 1, 1994.

The 2019 amendment, effective July 1, 2019, revised the liquor excise tax rates on beer manufactured or produced by a microbrewer and sold in this state, and provided for a liquor excise tax on cider manufactured or produced by a small winegrower and sold in this state and on spirituous liquors manufactured or produced by a craft distiller; in Subsection A, Paragraph A(1), after "liquors", added "except as provided in Paragraph (9) of this subsection", in Paragraph A(5), after "on the first", deleted "ten" and added "sixty", after "barrels sold over", deleted "ten" and added "thirty", after "but less than", deleted "fifteen" and added "sixty", and after "sixty thousand barrels", added "and forty-one cents ($.41) per gallon for sixty thousand or more barrels sold", in Paragraph A(7), after "cider", added "except as provided in Paragraph (8) of this subsection", and added Paragraphs A(8) and A(9).

2013 Multiple Amendments. — Laws 2013, ch. 95, § 2, effective January 1, 2014, increased the liquor excise tax rate for small winegrowers; and added Subparagraph (c) of Paragraph (6) of Subsection A.

Laws 2013, ch. 94, § 2, effective January 1, 2014, added a new tax rate for all barrels sold over ten thousand barrels, but fewer than fifteen thousand barrels; and in Paragraph (5), Subsection A, added the language after "eight cents ($.08) per gallon".

The 2008 amendment, effective July 1, 2008, increased the minimum production of wine from five hundred sixty thousand liters to nine hundred fifty thousand liters and added Subsections B and C.

The 2000 (2nd S.S.) amendment, effective July 1, 2000, substituted "five hundred sixty thousand liters" for "three hundred seventy-five thousand liters" at the end of Subsection F.

The 2000 amendment, effective July 1, 2000, in Subsection E, changed the excise tax on beer produced by a microbrewer from twenty-five cents per gallon to eight cents per gallon.

The 1997 amendment, effective July 1, 1997, substituted "three hundred seventy-five thousand" for "two hundred twenty thousand" in Subsection F.

The 1996 amendment, effective July 1, 1996, added Subsection G.

The 1995 amendment, effective June 16, 1995, deleted "or distributes" following "sells" and "or distributed" following "sold" in the introductory paragraph.

The 1994 amendment, effective July 1, 1994, substituted "one dollar sixty cents ($1.60)" for "one dollars sixty cents ($1.60)" in Subsection A; inserted "except as provided in Subsection E of this section" in Subsection B; substituted "a micro brewer and" and "each micro brewer" in Subsection E; and, in Subsection F, deleted former Paragraph (2), which read: 'after June 30, 1994, twenty-five cents ($.25) per liter on all liters sold", combined together the former introductory language and former Paragraph (1) into one present paragraph, substituted "a small winer or winegrower and" for "each small winer or winegrower", and deleted "from July 1, 1992 to June 30, 1994" preceding "ten cents" and "and" at the end.