New Mexico Legislature approves tax increase package

News

SANTA FE, N.M. (AP) – The New Mexico Legislature has approved roughly $280 million from new taxes and fees to bridge a general fund budget shortfall for the coming fiscal year.

The Democrat-led House voted 37-32 on a revenue plan that would raise taxes and fees on gasoline and diesel sales, retail sales over the internet, trucking permits and nonprofit hospitals.

House lawmakers in the Republican minority want any agreement on revenue increases to include an overhaul of the state’s gross receipts tax to eliminate an array tax breaks including exemptions for nonprofits.

Democratic lawmakers warn that without new revenue streams additional funding cuts to public schools and state agencies are inevitable. The new taxes and fees also are designed to rebuild depleted state reserves to protect the state’s credit rating.

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