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Mon April 8, 2013
Last-Minute Bill Increases Corporate Tax Credits
This year's 60-day session of the New Mexico State Legislature is over, with some surprises revealed in the final hours.
The last-minute deal includes a tax package that cuts corporate taxes to 5.9-percent and reduces the state's revenue by $56-million within several years. Governor Susana Martinez announced after the session that she will now sign the $5.9-billion state budget that includes one percent pay raises for state workers.
"Given our last minute agreement, I will sign the jobs package, I will review the state budget carefully. I may have some line item vetoes, but overall I will sign the state budget and we will avoid the need for a special session."
Opponents of the hastily compiled tax package, including Representative Mimi Stewart of Albuquerque, said legislators didn't get a chance to read the 35-page document before voting on it. The measure would put the state's tax credit balance at almost $1-billion. The governor downplayed the possibility that consumers will pay higher gross-receipts taxes in coming years, although under the bill, larger city and county governments will have more authority to do just that.