Gov. Susana Martinez stood on a sound stage in Albuquerque last summer crediting the film and television industry with injecting a record $505 million into the New Mexico economy over the previous fiscal year. But will the governor who sought to cut tax rebates for filmmakers when she first took office go along with a bill to lift the current cap on incentives, a measure that some say would provide an additional boost as the industry continues to prove a particularly busy part the state’s economy? Democratic legislators are pushing a bill that would eliminate the $50 million cap on the annual total of tax rebates the state provides film and television producers working in New Mexico. In an unusual inversion of the Legislature’s typical partisan dynamics, Democrats argue it would be a boon for business but Republicans contend it could strain the state’s budget and amount to a giveaway for out-of-state businesses. So even though the proposal, House Bill 113, passed its first committee on Wednesday, it only did so on party lines, casting doubt on whether the Republican governor would support it.
New Mexico legislators are seeking to overhaul a key part of the state’s tax code in next year’s legislative session, but doing so will be difficult.
That’s according to members of the New Mexico Legislature’s interim Revenue Stabilization and Tax Policy Committee after they heard a presentation from state experts on tax reform efforts and an update on an independent study on tax reform in the state. Legislators have been looking at reforming the state’s Gross Receipts Tax, a key source of revenue. Earlier this year, the state hired Ernst & Young, in partnership with Georgia State University, to take a look at how changing the state’s GRT might affect revenue. Legislative Finance Committee analyst Jon Clark said analysts will examine a tax reform effort sponsored during this year’s special legislative session by Rep. Jason Harper, R-Rio Rancho. Harper took a crack at tax reform when he introduced House Bill 8, a massive 400-page bill which would have lowered the gross receipts tax while eliminating most deductions.
The Attorney General’s office filed a search warrant for the house of Demesia Padilla. Padilla then resigned from her position as Taxation and Revenue Department Secretary. Here are some of the key parts of the search warrant that NM Political Report obtained yesterday. Padilla was doing work for Harold’s Grading & Trucking through Feb. 2013.
When the State Taxation and Revenue Department was in the process of auditing Bernalillo-based Harold’s Grading & Trucking, Secretary Demesia Padilla wanted to write an affidavit supporting tax deductions the company made in the past. This is according to an email recently released to New Mexico Political Report by the department as part of a public records request. Padilla is under investigation by the New Mexico Attorney General’s office for allegedly using her position to attempt to provide special treatment to a taxpayer for whom she previously did accounting work. State Auditor Tim Keller, whose office conducted a preliminary investigation into the matter, wouldn’t publicly identity the name of the taxpayer in question. However, a botched redaction from the tax department this summer revealed that it was Harold’s Trucking.