How to Get a Liquor License in New Mexico

Any business that hopes to serve alcohol legally in New Mexico must obtain a state liquor license. It should go without saying that these businesses rely on the safety and security that a liquor license provides to drive revenue.

Of course, acquiring a liquor license in New Mexico comes with its own unique set of complications. There are license quotas to consider, meaning certain entrepreneurs must purchase a license from an existing business to legally sell beer, wine, and spirits.

However, there is a silver lining here. In 2021, it was announced that New Mexico would significantly modify the state’s liquor laws, including eliminating a ban that prohibits the sale of alcohol before 11 a.m. on Sundays.^[1]Las Cruces Sun News. “No minis, but sales before noon on Sundays: New Mexico businesses react to liquor law changes.” Accessed on September 13, 2024. Local liquor merchants welcomed the news, as many believed the state was finally beginning to soften its historically stringent approach to the alcohol industry. That said, applying for a liquor license in New Mexico remains a nuanced and complex process. Navigating the process with intent can help your business increase sales and avoid expensive, long-term delays.

How much is a liquor license? Do you qualify for one? This guide will answer those questions and more. We’ll also learn how to apply for a license, learn about the laws that dictate the sale of alcoholic beverages within the state, and discuss other related topics. Read ahead if you’re ready to start a new business in New Mexico’s thriving liquor sales sector!

Types of New Mexico Liquor Licenses

There are two broad categories of liquor licenses in New Mexico: dispenser and non-dispenser. The primary difference between the two is that dispenser licenses have a quota, meaning merchants must procure this license on a secondary market before transferring it to their business name (a process requiring its own application). Any quotas do not bind non-dispenser licenses. With this in mind, merchants can apply for a non-dispenser license directly via the state’s ABC division.

Let’s explore these two license types in greater detail:

For more niche businesses, there are other variations on the liquor license that we recommend looking into. The licenses listed below are all non-dispenser licenses:

The type of liquor license you need will directly correlate to your establishment’s setting and the type of alcoholic beverages you intend to sell. For instance, if your restaurant business generates at least 60% of its revenue from food sales, you will need a Restaurant Liquor License. How much does this particular liquor license cost? We’ll get into that later.

We recommend perusing the New Mexico Alcoholic Beverage Control (ABC) site to determine which license best suits your professional needs. As always, ensure you have a functioning merchant account and POS system that will allow you to accept various payment methods from your customers.

Liquor License Requirements for New Mexico

Merchants in New Mexico’s liquor sector will inevitably face roadblocks in obtaining their respective liquor licenses. One of these hindrances is the comprehensive information merchants will be asked to provide throughout the liquor licensing application process.

Let’s dive into the liquor license requirements for a restaurant serving alcohol:

In addition to this requirement, individual servers employed at any establishment with a liquor license must eventually attain Alcohol Server Permits. Interested parties can unpack information on available classes and permit providers in greater detail via the New Mexico Regulation & Licensing Department’s Server Permit or Duplicate page. Sooner or later, servers will be legally required to obtain this license. This extends to:

Be sure to explore additional business licensing requirements in your municipality for practical purposes and peace of mind.

Understanding Liquor Laws in New Mexico

At the risk of stating the obvious, no one in the New Mexico liquor sector wants to incur criminal or financial penalties. With this in mind, adherence to the state’s liquor laws is a top priority. New Mexico enforces a range of liquor-related laws to ensure public safety. Becoming familiar with these laws will significantly decrease your likelihood of running into obstacles along your path.

Below are some examples of enforceable liquor laws in the state of New Mexico:

How Much Does a Liquor License Cost in New Mexico?

Liquor licenses are not cheap in New Mexico, even for licensees not subject to quotas. For example, a Restaurant Liquor License can cost up to $10,000, a factor that depends on what type of beverages your establishment intends to serve. Merchants must also pay a non-refundable $200 application fee upon applying for a license.

For those wondering how to get their liquor license in New Mexico, here are the prices you can expect to pay per year for a Restaurant Liquor License:

• Restaurant (Beer and Wine): $1,050
• Restaurant (Beer, Wine, and Liquor): $10,000

Typically, dispenser licenses cost substantially more than non-dispenser licenses, as they must be purchased on a secondary market.

How to Apply for a Liquor License in New Mexico

In many states, obtaining a liquor license is pretty simple. Unfortunately, New Mexico is not one of those states. While the process is by no means impossible, applicants must still proceed through the steps in accordance with state law. Upon notarization, merchants can submit their application to New Mexico’s Alcoholic Beverage Control (ABC).

To get started, complete your application form in full and collect any information you may be asked to provide. Much of this information can be found in this guide’s “Liquor License Requirements for New Mexico” section. The state will review your materials upon submission of your application to ABC.

In the event of license approval, you will inform the public of the change. Following this, you will undergo a series of hearings. If all goes well, your liquor license will be approved shortly after that (you can find a complete list of instructions on the New Mexico ABC site).

Of course, this process is time-intensive and complex, making setting up an alcohol-related business on short notice something of a challenge. Please note that the process we’ve just described only applies to non-dispenser licenses. Those who purchase a license from another business must then apply to transfer it to their business name before selling alcohol, wine, or spirits.

The bottom line is that acquiring a liquor license in New Mexico is a nuanced, intricate process. Merchants are encouraged to plan and budget accordingly.

Below, we’ll unpack how to renew your liquor license in New Mexico.

How to Renew your New Mexico Liquor License

Thankfully, renewing one’s New Mexico liquor license is less stressful than the initial application process. You can expect the New Mexico Alcoholic Beverage Control department to email you a renewal application approximately a month before your individual renewal date. In that case, they will contact you via the email address you originally listed on your application form. If, for any reason, you have changed your email address since initially filing your application, notify the ABC immediately.

Merchants should follow the renewal email instructions before submitting their application. Those who fail to do this will be subject to a $350 late submission fee plus an added $10 penalty for every late day after that. In addition, these individuals must compose a letter explaining why they failed to renew their liquor license on time.

Deadlines for renewing licenses vary depending on the license type. For further clarity, view the renewal deadlines below:

Make the license fee check out to the Alcoholic Beverage Control or ABC, and send it to:

ABC- Renewal
P.O. Box 25101
Santa Fe, NM 87504-5101

Getting a Beer and Wine License in New Mexico: Closing Thoughts

Compared to states where it remains relatively easy to start a liquor business, New Mexico has its fair share of challenges. Despite these challenges, New Mexico liquor merchants stand to benefit from a robust local economy and a tourism sector experiencing substantial highs in consumer spending.^[2]Office of Governor Michelle Lujan Grisham. “New Mexico’s tourism industry sees all-time record spending.” Accessed on September 13, 2024.

Upon obtaining a New Mexico liquor license, you will inevitably need to partner with a merchant service provider who can help you accept customer payments. Naturally, modern consumers are used to completing transactions via credit card; alas, many companies in the liquor industry struggle to access the correct form of payment processing due to being labeled high-risk. Fortunately, high-risk merchant account providers are ready to offer payment solutions to businesses in New Mexico serving beer, wine, and liquor. Furthermore, many of these high-risk providers supply industry-specific tools, fraud protection, affordable processing rates, and other benefits. Join forces with a merchant service provider and start accepting payments at your bar or restaurant today!

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