Gov. Michelle Lujan Grisham signed a new bill into law to provide tax relief for New Mexicans and businesses on Monday.
The bill would waive interest and penalties on late payments of taxes to allow New Mexicans and businesses to pay their taxes by July 15 without penalties or interest.
“The financial pain caused by COVID-19 is real. This bill will help New Mexicans who through no fault of their own were unable to pay their taxes on time,” Lujan Grisham said in a statement on Monday. “It will help local governments, and it will help small businesses, all of whom have been suffering the dreadful effects of this pandemic. I have said all along through this crisis: New Mexico will deliver for its people, for its workers, and for its families. And we will continue that work every single day, fighting to keep New Mexicans safe and to make them whole and see our state through this crisis.”
“The sudden and drastic economic turn caused by the pandemic hit a lot of New Mexicans hard,” Senate Majority Leader Peter Wirth, D-Santa Fe, said. Wirth was a sponsor of the bill. “The relief offered through this bill will give taxpayers an additional year to recover financially without having to worry about tax penalties and interest. And, given the massive fiscal hits to our local governments, distributing an additional $24 million to our cities and counties from internet sales is critical relief to help avoid massive cuts and layoffs.”
Additionally, the bill would provide relief for counties and municipalities by how much they receive from gross receipts taxes on internet sales from $24 million to $48 million. New Mexico, like many states, began collecting taxes on internet sales for most retailers, following a 2018 U.S. Supreme Court decision.
A third provision, related to the federal CARES Act, would adjust the state corporate income tax to avoid a large negative impact on the state’s revenue.