LIQUOR TAX CHANGES & PROGRAMS

SB 431 changes how New Mexico distributes liquor tax revenue. It allocates 94% of liquor excise tax revenue to a new Local Alcohol Harms Alleviation Fund (replacing the previous DWI fund) and 6% to the Drug Court Fund, while creating a separate Tribal Alcohol Harms Alleviation Fund funded by a new surtax on liquor retailers. The bill also excludes liquor excise taxes from the definition of "gross receipts" in another tax law and requires legislative committees to review liquor tax rates and distributions. These changes directly affect local governments receiving funds for alcohol treatment programs, tribal communities accessing the new tribal fund, and liquor retailers paying the surtax.