Editor’s Note: This story was published in January 2023, as lawmakers began to meet in the 2023 legislative session. By the end of the legislative session, lawmakers passed a different level of rebates, different from the initial proposal the Governor expressed support for. For the latest information on New Mexico’s 2023 tax rebates, click this link to read an updated article from April 2023 on KRQE.com.
SANTA FE, N.M. (KRQE) – A month after suggesting a new round of economic relief or “tax rebate” payments could go out to New Mexicans in 2023, Governor Michelle Lujan has finalized her support for a specific proposal. The Governor is endorsing Senate Bill 10, legislation that would send one-time rebates of $750 to single tax filers, or $1,500 to joint tax filers.
The latest proposal marks the second year in a row that lawmakers have pursued rebate legislation. Last year, lawmakers passed two different rebate-related bills. One bill sent out $250 and $500 rebates in July to New Mexicans who made under a specific income threshold, or adjusted gross income. A second bill passed during the April 2022 special session, giving $500 or $1,000 to any New Mexican who filed taxes, regardless of income.
This year, the latest round of $750 or $1,500 payments is expected to go to as many as 875,000 New Mexico taxpayers in the summer. According to a draft of Senate Bill 10 posted online, payments would go to tax filers regardless of how much income they made. However, that bill says in order for people to automatically receive a rebate, they’ll have to have filed a tax return for 2021.
To those who don’t file taxes, the legislation also calls for an additional system where non-filers can apply for the rebate on a first-come, first-served basis. In 2022, the state offered a similar application system for the “special session rebates” through the New Mexico Human Services Department’s “Yes NM” website.
In a statement formally announcing the proposal Wednesday, the Governor cited continued high prices and a need to “help more New Mexicans afford the things they need right now.” The bill is being co-sponsored by Senator Benny Shendo (D) who represents much of northern New Mexico.
“New Mexico is seeing an unprecedented revenue projection for the year ahead, and we are in a great position to make bold investments for both today and the future,” Shendo said in a news release. “This rebate will help thousands of families across the state as we continue recovering from the struggles we’ve faced these last few years.”
According to the legislation, there is no specific date on when the rebates are expected to be paid out. The legislation states, “the rebates shall be made as soon as practicable after a return is received.”
The rebates would still need to be passed by both the New Mexico House and the Senate. So far, neither chamber has taken a vote on the bill.
New Mexico lawmakers began a 60-day legislative session just over a week ago, on January 17. Lawmakers are planning out how to spend record oil revenues for the state, which are expected to bring in more than 3-billion dollars in new funding.