NEW MEXICO (KRQE) – Governor Michelle Lujan Grisham has announced a proposal to cut gross receipts taxes statewide as part of signature legislative agenda items for the 2022 session. In a news release from the Office of the Governor, the proposal is reported to save New Mexicans an estimated $145 million annually or $1.5 billion over 10 years.
The plan will be made up of a statewide 0.25% reduction in the gross receipts tax rate which lowers the statewide rate to 4.875%. This would be the first change in the statewide gross receipts tax rate since July 2021 when the rate increased from 5% to the current rate of 5.125%.
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The Taxation and Revenue Department states that New Mexico has not decreased its statewide gross receipts tax rate since 1971. Similar to a retail sales tax, gross receipts tax is levied on all individuals engaged in business in New Mexico.
The announcement of statewide cuts was made by the governor during an address at the Albuquerque Economic Forum on Wednesday.