In November 1998, four of the major tobacco manufacturers, Philip Morris, RJ Reynolds, Brown & Williamson and Lorillard, settled lawsuits filed by New Mexico, 45 other states, the District of Columbia, and five United States Territories by agreeing to enumerated prohibitions and other restrictions on the marketing and advertising of their tobacco products and to compensate the States for costs associated with health care problems attributable to the use of the companies’ tobacco products. This agreement is known as the Tobacco Master Settlement Agreement or “MSA”. Since the MSA was first executed over forty tobacco product manufacturers have joined the agreement.
As a corollary to the MSA, the State of New Mexico has enacted laws that impact on tobacco product manufacturers who intend to sell their product in New Mexico. One statute is located at NMSA 1978, §§ 6-4-12 &13(1999) and is commonly known as the Model Escrow Statute. The tobacco Model Escrow Statute requires a tobacco product manufacturer (which term is defined in the statute and in general includes fabricators or first line importers of cigarettes and roll-your-own cigarette tobacco), who sell product in New Mexico, to either become a participant of the MSA and comply with its terms or to establish an escrow account to the satisfaction of the New Mexico Office of the Attorney General (“AGO”) and to pay into said escrow account in accord with Section 6-4-13 as a “non-participating manufacturer”. A failure on the part of a tobacco product manufacturer selling its product in New Mexico to abide by the tobacco Model Escrow Statute will expose that tobacco product manufacturer to civil penalties and other sanctions.
Additionally, the New Mexico Legislature recently passed and the Governor signed into law another statute to complement the tobacco Model Escrow Statute, which complementary legislation can be found at NMSA 1978, Sections 6-4-14 -6-4-24 (the Tobacco Escrow Fund Act)(the “Act”). Under the Act, among other things, all tobacco product manufacturers who intend to sell their tobacco product in New Mexico are obligated to first qualify for inclusion in a Directory established by the AGO, which Directory contains the brand names and families of tobacco products that are compliant with the tobacco Model Escrow Statute and the Act. Only brand names and families in the Directory may be sold in New Mexico. A brand of tobacco product not included in the Directory is considered contraband and subjects its manufacturer to civil penalties and other sanctions and the product to seizure.
NOTICENew Tax policy regarding Small and Little Cigars: August 13, 2012
Download the pdf form at the bottom of the page.
Fire Safer Cigarette Laws
Fire Safer Cigarette Laws become effective January 1, 2010. Please see forms and information on the New Mexico Public Regulations Commission website in the State Fire Marshal Division under the Code Enforcement tab.
The Cigar/Little Cigar List of Compliant Brands contains the names of brands confirmed to be "Cigars" pursuant to documentation from the manufacturer. Their tax compliance is confirmed to be that of a large cigar. The List also contains the names of brands confirmed to be "Little Cigars" pursuant to documentation from the manufacturer, and are subject to stamping as a cigarette."
Tobacco Manufacturers Directory
The Tobacco Manufacturers Directory contains the brand names and families of tobacco products that are compliant with the Tobacco Model Escrow Statute and the Tobacco Escrow Fund Act.
NOTICE OF PENDING LITIGATION AND JUDGMENTS AGAINST
NON-COMPLIANT TOBACCO MANUFACTURERS AND/OR DISTRIBUTORSIN NEW MEXICO [UPDATED 11-26-13]
All forms are also located on our publication forms page.
Tobacco Contact Information
If you have questions, additions, or changes regarding the lists of tobacco product manufacturers, please contact:
Special Projects Coordinator - Litigation Division
New Mexico Attorney General's Office
408 Galisteo Street
Santa Fe, NM 87501
IN NEW MEXICO
These Brands/Families are non-compliant with New Mexico Statute.
THIS IS NOT A COMPLETE LIST – PLEASE CHECK OUR DIRECTORY IF YOU HAVE ANY QUESTIONS.
LICENSED DISTRIBUTORS ARE NOT ALLOWED TO SELL ANY CIGARETTES THAT ARE NOT LISTED ON THE ATTORNEY GENERAL’S DIRECTORY.
NM Law forbids the sale of Kreteks or any clove content cigarettes.