New Mexico – A House committee has approved proposals to increase income and sales taxes by $300 million to help balance the state's budget.
One measure will provide nearly $240 million next year by raising the gross receipts tax by one-half cent to 5.5 percent. The tax rate will decline annually until it returns to 5 percent starting in July 2014.
Another proposal will generate $66 million next year by levying a 1.5 percent surtax on certain taxpayers, such as married couples with taxable income of more than $200,000 if they file joint returns. The surtax is to remain in place for three years.
The Taxation and Revenue Committee approved the tax measures Monday night. The bills go to the full House for consideration.
Copyright 2010 The Associated Press.