A. Except as provided in Section 7-12-6 NMSA 1978, all cigarettes shall be placed in packages or containers to which a stamp shall be affixed. Only a distributor with a valid license issued pursuant to the Cigarette Tax Act may purchase or obtain unaffixed tax-exempt stamps, tax-credit stamps or tax stamps. A distributor shall not sell or provide unaffixed stamps to another distributor, manufacturer, export warehouse proprietor or importer with a valid permit pursuant to 26 U.S.C. 5713 or any other person.

B. Stamps shall be affixed by the distributor to each package of cigarettes to be sold or distributed in New Mexico within thirty days of receipt of those packages.

C. A distributor shall apply stamps only to packages of cigarettes that the distributor has received directly from another distributor or from a manufacturer or importer of cigarettes that possesses a valid and current permit pursuant to 26 U.S.C. 5713.

D. A distributor shall not affix a stamp to a package of cigarettes of a manufacturer or a brand family that is not included in the directory or sell, offer or possess for sale cigarettes of a manufacturer or brand family that is not included in the directory.

E. Packages shall contain cigarettes in lots of five, ten, twenty or twenty-five.

F. Unless the requirements of this section are waived pursuant to Section 7-12-6 NMSA 1978, a tax stamp shall be affixed to each package of cigarettes subject to the cigarette tax, a tax-credit stamp shall be affixed to each package of cigarettes subject to a qualifying tribal cigarette tax, and a tax-exempt stamp shall be affixed to each package of cigarettes not subject to the cigarette tax pursuant to Section 7-12-4 NMSA 1978.

G. A tax-exempt stamp or tax-credit stamp is not an excise tax stamp for purposes of determining units sold pursuant to Section 6-4-12 NMSA 1978.

H. Stamps shall be affixed inside the boundaries of New Mexico, unless the department has granted a license allowing a person to affix stamps outside New Mexico.

History: Laws 1943, ch. 95, § 3; 1941 Comp. Supp., § 76-1603; Laws 1949, ch. 180, § 3; 1953 Comp., § 72-14-3; reenacted as 1953 Comp., § 72-14-5 by Laws 1971, ch. 77, § 5; 1984, ch. 51, § 2; 1988, ch. 95, § 4; 2001, ch. 175, § 1; 2006, ch. 91, § 4; 2007, ch. 182, § 3; 2009, ch. 197, § 12; 2010 (2nd S.S.), ch. 5, § 8.

Cross references. — For cigarette tax, see 7-12-3 NMSA 1978.

The 2010 (2nd S. S.) amendment, effective July 1, 2010, in Subsection A, in the second sentence, after "unaffixed tax-exempt stamps", added "tax-credit stamps"; in Subsection F, after "cigarettes subject to the cigarette tax", added "a tax-credit stamp shall be affixed to each package of cigarettes subject to a qualifying tribal cigarette tax"; and in Subsection G, after "tax-exempt stamp", added "or tax-credit stamp".

The 2009 amendment, effective July 1, 2009, in Subsection B, changed "ten days" to "thirty days"; in Subsection C, after "has received directly from" added "another distributor or from"; and added Subsection D.

The 2007 amendment, effective June 15, 2007, revised Subsection D to add lots of "five" and "ten".

The 2006 amendment, effective May 17, 2006, in Subsection A, provided an exception to affixing stamps, provides that only a distributor with a valid license may acquire unaffixed tax-exempt stamps and prohibits a distributor from selling unaffiixed stamps; added Subsection B to provide for the affixation of stamps; added Subsection C to provide that stamps may be affixed only to packages of cigarettes that have been received from a manufacturer or importer; in Subsection D (formerly Subsection B), deleted the provision that packages that are not in multiples of five cigarettes shall have a stamp of the next higher multiple of five cigarettes; in Subsection D (formerly Subsection B), provided that packages shall contain cigarettes in lots of twenty or twenty-five; in Subsection E (formerly Subsection C), deleted the provision that the stamp shall be affixed by any person who sells cigarettes manufactured by that person or who receives on consignment or buys unstamped cigarettes; in Subsection E (formerly Subsection C), provided that the stamp shall be affixed to packages subject to the cigarette tax and tax-exempt stamps shall be affixed to packages not subject to the cigarette tax; and added Subsection F to provide that a tax-exempt stamp is not an excise tax stamp.

The 2001 amendment, effective June 15, 2001, deleted "license fee" from the section heading and in Subsection D, deleted the provisions for a license fee.