Are landlords required to paint after tenant move-out?

We rented an apartment for the last six months in Albuquerque, New Mexico and now the Landlord and manager are trying to keep two thirds of our deposit to paint the place for yellowing from smoking tobacco inside. When we signed the lease, I asked the manager if smoking was allowed and she said yes. They claim to be retaining the funds on the grounds that the lease was only for six months (they usually only signed for nine to twelve months). I was under the impression that regardless of lease length, owners of leased property are responsible for re-painting before new tenant moves in. Is this correct?