In this edition of Other Voices we welcome former longtime NM political reporter Steve Terrell who is now putting his considerable talents to work for government watchdog group Common Cause. 

The group is closely following the proposal to raise the state booze tax a quarter a drink in order to cut into the exceptionally high alcohol-related death rate in the state--the worst in the nation. A tiny tax hike was approved at the last session but then MLG stunned supporters by vetoing even that. 

As Terrell writes, because of an exceptionally powerful lobby raising the alcohol tax at the next session in January won't get any easier. 

Here's his column: 

Raising the tax on alcohol in New Mexico will hurt small, locally owned businesses like local brew pubs and wineries and neighborhood bars. And raising those taxes will hurt the tourism industry, which is crucial to New Mexico’s economy.

Lobbyists for the liquor and hospitality industries make these and similar arguments during the New Mexico Legislature any time a bill calling for an alcohol tax increase is discussed. We heard it all again during the 2023 session, in which some legislators unsuccessfully tried to pass a 25-cent-per-drink tax increase on the state’s alcohol excise tax.

But think about it.

If you and a bunch of friends go out and you each were going to have three drinks  — whether at the fanciest restaurant or the darkest little dive bar  — would the fact that it’s going to cost you an extra 75 cents that night really stop your party plans?

Back in 2010 when then-state Rep. Brian Egolf unsuccessfully sponsored a bill that would have raised the alcohol tax, he scoffed at the idea his proposal would hurt tourism.

"How many people look up the tax rate on alcohol before they decide where to go on vacation?" Egolf told a reporter. "You'd have to be the most degenerate alcoholic!"

NEVER A BAD SESSION

A recent report by Common Cause New Mexico – written by former state Sen. Dede Feldman and myself – looks at how the alcohol lobby and its allies have for years been successful in thwarting in any increase in the tax on alcohol.

This despite the fact that the state not only is the highest in the nation for alcohol-related deaths, it’s three times the national average. One in five deaths of working-age New Mexicans between 2017 and 2021 was caused by alcohol consumption, according to state Department of Health statistics.

Our report cited a recent study by the University of New Mexico Department of Economics that showed taxpayers here shell out $2.77 per drink for the health costs of alcohol. These costs include deaths, other health costs, underage drinking, and drinking while pregnant.  But that study suggests this figure probably is low because it doesn’t consider other costs such as domestic violence and traffic accidents.

Just looking at the last decade, Common Cause determined that the alcohol industry spent more than $2.6 million on political activities in New Mexico between 2013 and the spring of 2023. This figure includes:  • Nearly $1.8 million in campaign contributions by industry lobbyists to legislators and statewide candidates
• More than $456,000 spent by industry lobbyists to wine, dine and entertain policymakers
• More than $800,000 in campaign contributions to candidates from alcohol companies, retailers, distributors, breweries, wineries and affiliated individuals.
• More than $180,000 spent by industry PACS and allied organizations, including the New Mexico Restaurant Association.

This industry wisely has hired some of the best-known and best-liked lobbyists to make its case to lawmakers and wisely allowed the owners of small, local brewpubs, wineries and distilleries, rather than large international companies, become the face of their legislative effort.

Alcohol interests don’t provide nearly as much political money as, say, the oil industry in this state. But considering all the failed efforts to increase the tax on their product, the Common Cause report concludes that the industry has never had a bad session in the New Mexico Legislature.

We’ll be interested if they keep this streak going in the upcoming session.

BELOW THE BELT?

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First things first. ABQ District 6 City Council candidate Jeff Hoehn has not been charged with sexual harassment by "multiple women." He does not engage in discrimination" against people of color trying to buy homes" and he certainly did not have to pay a $1.8 billion jury verdict for "inflating the price of homes sales commissions."

Voters receiving the attack mailer from the Real NM Leadership PAC supported by labor unions and others backing Dem Nichole Rogers in her next Tuesday election run-off against Hoehn would know that if they looked below the accusations and read the very fine print that explained how Hoehn came to be associated with the sensational charges. That fine print states:

KRQE and The New York Times have reported on housing discrimination, sexual harassment claims, and price inflation involving the National Association of Realtors.

But most voters in the SE ABQ district are not going to look that far and that raises the question of whether this hit was below the belt. 

Hoehn is supported by the Help ABQ PAC that received money from real estate interests but he does not have any control over what the PAC says or does and he can't stop them from supporting him--although he has not rejected their support.

The hit on Hoehn does say at the top that the charges being leveled are against "Hoehn's biggest backer" but it's the guilt by association headlines next to Hoehn's photo that will grab most voters' attention. So on a below the belt scale of one to ten this one scores an 8. 

In another campaign finance note, we reported exclusively that Hoehn, who bills himself as a "progressive Democrat," accepted a $1,500 contribution from conservative Republican City Councilor Trudy Jones. Hoehn has yet to explain how that doesn't conflict with his self-awarded description of being a progressive Dem.

This is the Home of New Mexico Politics.

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