The chairman of an influential Senate committee proposes to strip out big pieces of a sprawling tax bill, scrapping a proposed increase in New Mexico’s personal income tax rates and scaling back a suggested increase in a credit for families. For backers of House Bill 6, the measure is key to making the tax system more progressive and shoring up the state’s finances before the oil industry takes another dive and New Mexico’s government is left strapped for cash again. But the idea of passing several tax increases at a time when the state anticipates a budget surplus from an ongoing oil boom has drawn plenty of criticism. Some senators on both sides of the aisle have argued the proposed tax hikes are too much, too fast — and potentially a big political liability. Sen. Clemente Sanchez, a Democrat from Grants who chairs the Senate Corporations and Transportation Committee, on Tuesday called for changes to the bill that would reduce the amount of money raised for the general fund from more than $300 million in the next fiscal year to an estimated $93 million, not including some other changes.
After a three-hour debate Thursday night, the state House of Representatives by a narrow margin — 36-34 — approved a measure that would legalize recreational use of marijuana in New Mexico. Any resident 21 years or older would be allowed to buy, possess and use cannabis under the proposal, which also would create a state oversight commission. House Bill 356 next heads to the Senate for consideration. If the Senate approves it, it would go to Gov. Michelle Lujan Grisham, who has said she favors legalizing recreational marijuana if the proper safeguards are put in place. If such a proposal became law, New Mexico would become the 11th state to decriminalize marijuana, which remains illegal under federal law.
The New Mexico House of Representatives approved a sweeping tax-reform bill late Friday night that would generate at least $320 million more each year for the state’s general fund. Republican lawmakers critical of the move called it one of the biggest tax increases in New Mexico history. The bill, approved on a vote of 40-25 after nearly three hours of debate, also would bring in $37 million per year in additional funding for state and local roadways. Not surprisingly, the vote fell mostly along party lines, with two conservative Democrats joining Republicans to oppose the bill — which, some lawmakers said, will financially hurt the average New Mexican. Among other measures, House Bill 6 would implement a tax on all online sales, increase the tax on cigarette sales by 10 cents per cigarette, repeal a state law that allows New Mexicans to deduct half of their capital gains income on their personal income tax forms and increase the motor vehicle excise tax to 4.2 percent from 3 percent.
Very different visions for legalizing cannabis in New Mexico are a bit closer to becoming reality after legislative hearings on Saturday. A bill that would legalize recreational cannabis for adults over 21 and task the state with licensing retailers to sell the product is headed to a vote of the full House of Representatives after winning the approval of a key committee. Just a few hours later, a Senate committee backed a Republican-sponsored proposal to legalize cannabis and allow for sales from state-owned stores. It remains unclear whether the full Senate would approve either bill this year, making the campaign to legalize cannabis something of a long shot as the legislative session nears its end March 16. But with a new governor who has said she would sign a bill legalizing marijuana with the right provisions in place, both pieces of legislation have stirred a debate that was hypothetical a year ago.
When it comes to legalizing cannabis for recreational use, those responsible for running state government have a warning for lawmakers: Not so fast. The proposed legislation calls for the state to begin licensing retailers as soon as January 2020. But the state Taxation and Revenue Department has told lawmakers the deadline is unfeasible and asked that they push it back to 2021. The change would shove further into the future the day when New Mexicans who are 21 and older could freely buy cannabis from retailers. And that’s if House Bill 356 even passes this year, which may be a long shot, as the 60-day legislative session is in its final month and some Democratic senators remain opposed.
The state House of Representatives voted 41-27 to advance a proposal to draw money from the state’s Land Grant Permanent Fund to pay for more prekindergarten programs.
“This bill … is a step in the right direction,” said Rep. Javier Martinez, a co-sponsor of the bill, along with Rep. Antonio “Moe” Maestas, a fellow Albuquerque Democrat. “It could transform education in the state of New Mexico.” House Republicans, all of whom voted against the measure, cautioned that any drawdown from the endowment would affect its ability to grow. “Should we permanently damage the goose that lays the golden egg?”
A Republican state senator on Thursday introduced a bill that would legalize recreational marijuana but, unlike a Democratic House bill, would have the state operate retail marijuana stores. Sen. Mark Moores of Albuquerque said in a phone interview Thursday that, considering the number of western states that have adopted laws treating marijuana more like alcohol, legalization in New Mexico is inevitable. “It’s a just matter of how we want to do it,” he said. “We should do it in a smart way.” Moores said his proposal would take steps to reduce harmful effects of marijuana, “while allowing adults the liberty of using marijuana if they want to.”
Proponents of legalizing marijuana have long pointed to a prospective windfall they say state and local governments could enjoy by taxing products that now circulate on the black market. But the sponsors of a bill to legalize marijuana in New Mexico have an unlikely goal. They don’t want to tax it too much. And there’s a reason why. “Our goal was to stay under 20 percent,” said Rep. Javier Martinez, a Democrat from Albuquerque who is co-sponsoring House Bill 356, known as the Cannabis Regulation Act.
A proposed constitutional amendment to draw more money from the state Land Grant Permanent Fund to expand early childhood education jumped its first hurdle with ease Wednesday. The House Education Committee voted 10-4 on party lines for the measure. Democrats supported the measure, House Joint Resolution 1. It would take another 1 percent — at least $150 million a year — from the $17.5 billion state endowment. The bill’s proponents, including Rep. Javier Martinez, D-Albuquerque, say early childhood education can transform New Mexico, often regarded as one of the worst states in the nation for public education.
After years of efforts by drug-law reform advocates, could this be the year that New Mexico legalizes marijuana? There’s little doubt that the state is closer now than ever, with Republican Gov. Susana Martinez — an unyielding opponent of marijuana for recreational use — out of the picture and new Democratic Gov. Michelle Lujan Grisham on the record saying she’d sign a legalization bill as long as it had proper safeguards. But few, if indeed any, people at the Capitol are predicting House Bill 356, introduced last week by Rep. Javier Martinez, will make it out of the Legislature this year. “It’s time to be smart about the war on drugs,” Rep. Martinez, D-Albuquerque, said in a recent interview, calling the state and federal governments’ decade-sold anti-marijuana policy a failure. If the bill passes the Legislature and Gov. Michelle Lujan Grisham signs it into law, possession of up to 2 ounces of marijuana would be legal for those over 21.