Smith: Tax hike won't pass the Senate

SANTA FE (KRQE) – The chair of the Senate's Finance Committee told News 13 Monday that the votes aren't there to pass a half-cent gross receipts tax hike.

Last week, the House passed of a gross receipts tax increase of 50 cents on every $100 spent.

The hike would bring in $240 million a year for the state.

Sen. John Arthur Smith chairs the Senate Finance Committee. He said he'll look at bringing back the food tax on certain items.

Smith said some of the food tax exemptions don't play well with him.

"On House Bill 2 I doubt if we'll really look at House Bill 2, we're having staff review it," Smith said. "We're going to be looking at closing some tax loopholes."

Sources say, under one amendment, only food that you're qualified to buy with a WIC card or food stamps would be tax-free.

House Speaker Ben Lujan said he just wants the Senate to give his gross receipts tax bill and the budget bill a hearing.

"I'm hoping that we can, like we always have, come to some kind of compromise and have some dialogue between leadership by both the House and the Senate," Lujan said.

Smith said he's looking to increase the budget cuts of one percent that were called for by the House. He also said he believes salary cuts can be avoided.