SANTA FE, N.M. (KRQE) – Some tax reform legislation took effect on Friday. A majority of social security income is now exempt, and state sales gross receipts taxes were reduced to 5% from 5.125% which amounts to about 13 cents for every $100 spent.
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The state also ended taxes on feminine hygiene products and created a new refundable child tax credit of up to $175 per child. The bill cleared the legislature with bipartisan support.
As a result of the Gross Receipts Tax reduction, local rates for Gross Receipts Tax will change across New Mexico. Businesses and individuals can find local rates at tax.newmexico.gov in either the Businesses or Governments menu. The statewide rate will drop by another 1/8 cent in July 2023.