NM SB121

Increases the tobacco products tax rate from 25% to 40% of wholesale price, while maintaining a 25% rate (capped at $0.50 per cigar) for cigars and linking little cigars to the cigarette tax rate

Creates the "Nicotine Use Prevention and Control Fund" in the state treasury to be administered by the Department of Health for developing prevention programs targeting persons ages 5-25

Directs 35% of net tobacco products tax receipts to the new nicotine prevention fund, with unexpended balances reverting to the general fund at fiscal year end

Expands the definition of "tobacco product" to include products containing synthetic nicotine, and redefines "e-cigarette" as any device delivering aerosolized or vaporized nicotine (excluding batteries and chargers)

Effective date is July 1, 2026