2026 NMRA Legislative Agenda

New Mexico’s restaurant industry is a major economic engine, with 3,661 locations employing about 94,200 residents and representing roughly 11 percent of the state’s workforce. Yet many operators are still burdened by COVID-era loans and persistent inflation, facing sharply higher costs for food, labor, utilities, occupancy, and supplies that have turned once-sustainable margins into losses.

In this environment, any new taxes, mandates, or compliance costs—however well-intentioned—could push fragile restaurants into permanent closure just as they struggle to repay pandemic debt and stabilize their businesses. Because restaurants provide thousands of first jobs and anchor main streets and tourism across New Mexico, legislators should avoid measures that increase operating costs and instead support policies that allow restaurants to stay open and remain great employers. We have lost too many restaurants in the past year. We ask the legislature to be a part of the solution.

Liquor & Soft Drink Excise Taxes

On behalf of its membership, NMRA will  oppose liquor or soft drink excise taxes. These are taxes placed on liquor or soft drinks at the manufacturer or wholesale level, which in essence constitute hidden fees on New Mexicans that are regressive and create pyramiding taxation. New Mexicans already pay among the highest liquor taxes in the nation and restaurants collect nearly 10% in GRT for both soft drinks and liquor.

NMRA supported the liquor excise tax increase in 1994 to be used for DWI prevention and treatment programs. Currently, less than 50% of the liquor excise tax collected is put toward prevention and treatment programs. We support additional allocations from this fund to be used for these programs. We do not support additional taxes.

Paid Family Medical Leave

Restaurants are already grappling with increased costs because of inflation, the new paid sick leave mandate, and industry-wide labor shortages. The Paid Family and Medical Leave program, as it was proposed in 2024, raises serious concerns for restaurants and the broader small business community. The program, which mandates 12 weeks of paid leave for employees to care for anyone in their life, would require businesses to contribute $4 for every $1,000, and employees would contribute $5 for every $1,000 of their wages, to a stateadministered fund that is projected to be insolvent in a matter of a few years. This additional financial burden comes at a time when restaurants are struggling to maintain operations. Given these challenges, we believe the program needs to be reevaluated to consider its impact on employees and small businesses.

Minimum Wage & Tipped Wage Increases 

Because restaurants provide many first job opportunities (one in three Americans get their first job in restaurants), our industry is hardest hit when minimum wages increase. Therefore we advocate for reasonable increases that will not place jobs and businesses in jeopardy. Minimum wage increases are especially difficult for small businesses to absorb. We ask that the legislature keep this in mind when considering an increase.

Hospitality Workforce Development

There are 2,200 students enrolled in the ProStart CTE program across 42 NM High Schools. The missing link is to connect them with the restaurant industry. The restaurant and broader tourism sectors are grappling with a persistent labor shortage, a challenge that is expected to persist for multiple years without strategic intervention. To address this pressing issue, we urgently seek financial support to cultivate the next generation of leaders in hospitality and create a pipeline to employment within the hospitality industry. With $500,000 appropriated by the legislature, we can encourage these students to work in this growth industry. This targeted investment will enrich the talent pool and contribute to the long-term sustainability and growth of these crucial industries. The ProStart program teaches students the fundamentals of the restaurant industry. It gives them management skills so they can work in a restaurant in high school and move into management when they graduate.

Increased Funding for Tourism Advertising Support

NMRA strongly supports initiatives to obtain a dedicated funding stream for tourism marketing. NM has fallen behind surrounding states in the dollars spent on tourism marketing and advertising, yet research by the US Travel Association shows that tourism marketing dollars return $40 for every $1 to the industry and $8 for every $1 in tax revenue for the state. NMRA supports a dedicated funding stream that would allow for consistent budgeting of advertising dollars and allow NM to compete more effectively to gain tourists from domestic and international markets.

For The Wrap Up of this Legislative Session, click here https://www.nmrestaurants.org/2026-legislative-wrap-up/ 

NMRA 2026 Legislative Menu