Articles Comments

New Mexico Telegram » Budget, Economy, New Mexico Senate, Roundhouse » “Tax reboot” clears first of many committees

“Tax reboot” clears first of many committees

A bill that is described as a “reboot” to the tax system passed its first committee, but it passed without a recommendation from the Senate Conservation Committee. It did move on with a 6-0 vote.

The bill would be a complete change to the New Mexico tax system. It would repeal virtually all the taxes in the state and replace them with a two percent consumption tax. Municipalities and counties would be allowed to add up to one percent in GRT increases.

The bill’s sponsor, Sen. Bill Sharer, R-Farmington, hailed the bill’s passage.

“It will be just easier to understand and compute. You know what you buy, sell and rent. Simply add 2% for the state’s cut rather than the over 8% tax that is charged now in some cities. We won’t need to charge those high taxes once the special interest credits, deductions and exemptions are eliminate,” Sharer said in a statement.

Legislation that would have examined the effectiveness of all tax credits was vetoed by both former governor Bill Richardson and current governor Susana Martinez. Martinez instructed her office to create a tax expenditure budget, but critics said it was not as encompassing as they wished and had items missing.

The bill now moves on to the Senate Corporations Committee where it could face a tougher hearing. It would then need to navigate the Senate Public Affairs Committee and the Senate Finance Committee before passage — a tall task, even in a 60-day session.

Written by

Matthew Reichbach has blogged about New Mexico politics since 2006. Matthew was a co-founder of New Mexico FBIHOP with his brother and part of the original hirings at the groundbreaking website the New Mexico Independent. Matthew has covered events such as the Democratic National Convention and Netroots Nation. In addition to politics, Matthew is an avid sports fan, especially of the Los Angeles Dodgers, and TV fan.

Filed under: Budget, Economy, New Mexico Senate, Roundhouse · Tags: , , ,

Comments are closed.