New Mexico’s Proposed Tax Increase on Tobacco Products

New Mexico has a proposed bill that will increase the taxes on tobacco products other than cigarettes such as cigars and smokeless cigarettes from 25% to 57% of the products value.  This comes on the heels of the bill proposed by Hawaii to massively increase the taxes on its electronic cigarettes.

The worrisome part is it’s possible effect on electronic cigarettes:

Perhaps more significant is the bill’s expanded definition of “tobacco products,” which would be redefined to include “any product containing tobacco that is intended or expected to be consumed without being combusted, unless it has been approved by the United States food and drug administration as a tobacco use cessation product and is being marketed and sold for that approved purpose.”  This could arguably cover electronic cigarettes, which generally contain a tobacco solution that is consumed without being combusted.

This is the trend others have worried about.  Read the full article here from Tobacco Law Blog.