Senator hopes tax reform proposal prompts dialogue

If the state of New Mexico wants to get back on solid financial footing it has to take on some sacred cows, according to Sen. Ron Griggs. Griggs, a Republican who is the former mayor of Alamogordo, calls the omnibus tax bill he is sponsoring the start of that conversation. The bill not only brings […]

Senator hopes tax reform proposal prompts dialogue

If the state of New Mexico wants to get back on solid financial footing it has to take on some sacred cows, according to Sen. Ron Griggs.

Griggs, a Republican who is the former mayor of Alamogordo, calls the omnibus tax bill he is sponsoring the start of that conversation. The bill not only brings back the gross receipts tax on food and medicine — albeit at a lower rate — but it raises the fee to transfer ownership of a motor vehicle and imposes a new fee to transfer or refinance real estate.

Senate Bill 343 would also reduce the corporate income tax, eliminate taxes on interest income, which would benefit retirees over 55, and help cities and counties with their budget challenges.

Large, complicated tax measures have not always fared well in the Legislature. The last one that was approved, in 2013, is still criticized because it has cost the state more than anticipated from granting corporate tax breaks.

Griggs said his bill would not raise taxes long term. The bill has not yet been analyzed to quantify its costs.



Griggs is not known as a tax expert and doesn’t serve on any of the committees that might hear the bill, but he said that shouldn’t stop others from considering the ideas. Other lawmakers have different tax bills moving through the Legislature, and most are more specific.

“What becomes important is to put the ideas out there,” Griggs said at a Monday news conference.

He said the measures would put the state on more stable footing and make it less reliant on revenue from oil and gas sales and production. It would also make New Mexico competitive with its neighbors in attracting retirees and business owners looking to relocate, he said.

“This bill eliminates interest income and dividend income from personal income tax for anyone over the age of 55,” he said. “This could help many in our state and it could help attract snowbirds to New Mexico.”

In addition, the bill would eliminate reimbursements to cities and counties under a promised agreement adopted when the state dropped the gross receipts tax on food and medicine. In exchange, it would re-impose that tax at a statewide rate of 3.75 percent on food and 2 percent on medical services, allowing local governments to keep the entire amount. Low-income residents would see an increase in the working families tax credit to offset some of their tax payments on food.

Moreover, it would reduce the corporate income tax rate to 3 percent from what is now the lowest rate of 4.8 percent.

The bill heads to the Senate Corporations and Transportation Committee and then Senate Finance.

Contact Bruce Krasnow at 505-986-3034 or [email protected]

We're ad free

That means that we rely on support from readers like you. Help us keep reporting on the most important New Mexico Stories by donating today.

Related

Questions remain about governor’s strategic water supply proposal

Questions remain about governor’s strategic water supply proposal

The proposed strategic water supply had a rocky road this legislative session that ultimately resulted in it not making it through even one chamber.…
Bill to end detention of immigrants in New Mexico fails soon after new report on poor conditions

Bill to end detention of immigrants in New Mexico fails soon after new report on poor conditions

A bill to prohibit immigration detention in New Mexico failed a few weeks after an organization issued a report regarding the conditions for a…
Supporters of Paid Family and Medical Leave say it will return

Supporters of Paid Family and Medical Leave say it will return

House Speaker Javier Martinez said that the Paid Family and Medical Leave will return to next year’s legislative session. SB 3, sponsored by state…
Questions remain about governor’s strategic water supply proposal

Questions remain about governor’s strategic water supply proposal

The proposed strategic water supply had a rocky road this legislative session that ultimately resulted in it not making it through even one chamber.…
Hearing examiner recommends that PRC reject controversial LNG storage facility

Hearing examiner recommends that PRC reject controversial LNG storage facility

New Mexico Public Regulation Commission Hearing Examiner Anthony Medeiros recommended that the commissioners deny New Mexico Gas Company’s request to build, own and operate…
SCOTUS hears interstate air pollution case

SCOTUS hears interstate air pollution case

The U.S. Supreme Court heard arguments Wednesday regarding a U.S. Environmental Protection Agency rule known as the good neighbor plan. The good neighbor plan…
Amid new graduation requirements, what do high schoolers want to learn?

Amid new graduation requirements, what do high schoolers want to learn?

By Margaret O’Hara, The Santa Fe New Mexican The main things that bring Brayan Chavez to school every day: Seeing, talking to and engaging with…
Special ed teachers hope lawmakers OK pay raises, admin changes

Special ed teachers hope lawmakers OK pay raises, admin changes

By Margaret O’Hara, The Santa Fe New Mexican Brittany Behenna Griffith has a laundry list of adjectives to describe the ideal special education teacher:…
Lawmakers must find consensus on competing education spending plans

Lawmakers must find consensus on competing education spending plans

By Margaret O’Hara, The Santa Fe New Mexican A challenging task awaits New Mexico lawmakers in the next 30 days: Reconciling three very different…
Proposal to curb executive powers moves to House Judiciary

Proposal to curb executive powers moves to House Judiciary

The House Government, Elections and Indian Affairs Committee discussed a potential constitutional amendment that seeks to limit the governor’s executive powers. The committee approved…
Supreme Court censures attorney over conduct in anti-COVID policy suits

Supreme Court censures attorney over conduct in anti-COVID policy suits

The New Mexico State Supreme Court censured a New Mexico attorney because of her “misconduct” in two unsuccessful cases pushing back on COVID-19 regulations…
Guv outlines some health priorities on state spending

Guv outlines some health priorities on state spending

During her state of the state address on Tuesday, Gov. Michelle Lujan Grisham told legislators that one of her legislative priorities is a request…
Referendum on Edgewood’s anti-abortion ordinance moves forward

Referendum on Edgewood’s anti-abortion ordinance moves forward

The town of Edgewood is moving forward with its ballot referendum on its anti-abortion ordinance at a cost of more than $35,000. The town…
2023 Top Stories #1: Anti-abortion efforts go local

2023 Top Stories #1: Anti-abortion efforts go local

Note: Every year, we count down the top ten stories of the year, as voted on by NM Political Report staffers. Earlier this month, the New Mexico Supreme Court heard oral…
NM Supreme Court to decide if local anti-abortion ordinances are legal

NM Supreme Court to decide if local anti-abortion ordinances are legal

The New Mexico Supreme Court will decide whether anti-abortion ordinances passed by local governments in eastern New Mexico over the last 13 months can…
AGs want FDA guidance on heavy metals for the baby food industry

AGs want FDA guidance on heavy metals for the baby food industry

New Mexico Attorney General Raúl Torrez and a coalition of 19 other attorneys general called on the U.S. Food and Drug Administration to issue…
Supporters of Paid Family and Medical Leave say it will return

Supporters of Paid Family and Medical Leave say it will return

House Speaker Javier Martinez said that the Paid Family and Medical Leave will return to next year’s legislative session. SB 3, sponsored by state…
Paid Family Medical Leave bill dies in the final days of the session for a second year in a row

Paid Family Medical Leave bill dies in the final days of the session for a second year in a row

A bill that would have provided paid leave for several weeks died on the House floor when 11 Democrats sided with Republicans to vote…

Bill to require disclosure of use of AI in campaign materials goes to governor

The Senate approved a bill aiming to require the disclosure of the use of artificial intelligence or other changes made by computers to campaign…
House amends, passes bill banning firearms near polling places

House amends, passes bill banning firearms near polling places

The House narrowly approved a bill that would ban firearms near polling places. The House voted 35-34 to pass the bill following an extensive…
Manny Gonzales doesn’t qualify for Senate GOP primary ballot

Manny Gonzales doesn’t qualify for Senate GOP primary ballot

Nella Domenici is the lone Republican candidate for U.S. Senate, after Manny Gonzales III failed to qualify for the ballot. Gonzales did not file…
Stansbury talks infrastructure issues at roundtable

Stansbury talks infrastructure issues at roundtable

Democratic U.S. Representative Melanie Stansbury discussed infrastructure issues and grants that could help fix those issues during a roundtable discussion at Rio Rancho City…
Questions remain about governor’s strategic water supply proposal

Questions remain about governor’s strategic water supply proposal

The proposed strategic water supply had a rocky road this legislative session that ultimately resulted in it not making it through even one chamber.…
Hearing examiner recommends that PRC reject controversial LNG storage facility

Hearing examiner recommends that PRC reject controversial LNG storage facility

New Mexico Public Regulation Commission Hearing Examiner Anthony Medeiros recommended that the commissioners deny New Mexico Gas Company’s request to build, own and operate…

GET INVOLVED

© 2023 New Mexico Political Report