SANTA FE, N.M. (KRQE) – The latest tax expenditure report from the state government shows how New Mexico spent its tax dollars and exemptions. The largest expense was direct rebate payments to New Mexicans.
The state spent over $694 million on special rebate checks sent out to New Mexicans during the summer of 2023. That made those rebates the largest tax expense.
The state also spent (or forewent collecting) over $443 million in taxes through gross receipts tax deductions for groceries and distributions to municipalities and local governments to make up for grocery deductions.
“This year’s report shows we are continuing to make progress improving our tax code, especially for middle-class New Mexicans and our most vulnerable residents,” Taxation and Revenue Secretary Stephanie Schardin Clarke said in a press release.
Overall, tax expenditures have essentially doubled over the last few years, meaning the state is giving back to taxpayers or collecting less in the first place. You can read the full report at this link.