Last-Minute Bill Increases Corporate Tax Credits

Apr 8, 2013

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.