SANTA FE, N.M. (AP) – New Mexico Gov. Susana Martinez says she is willing consider reinstating New Mexico’s food tax in an effort to resolve the state’s budget crisis.
The Republican governor said Tuesday that she would consider a food tax if it were combined with broader reforms that lower overall tax rates on gross receipts. New Mexico eliminated the gross receipts tax on food in 2004.
Martinez and the state’s Democratic-led are locked in a standoff over how to resolve a state budget crisis linked to faltering tax revenues and a stagnant economy.
Democratic House Speaker Brian Egolf of Santa Fe says his caucus opposes taxes on food.
Martinez last month vetoed a variety of tax and fee hikes approved by the Legislatures to shore up funding for schools, courts and essential state services.