NM Corporate Tax Cut On Table

Mar 16, 2013

Lawmakers are proposing a last-minute package of state tax reductions for economic development but the measure would raise taxes in cities and counties across New Mexico.

The Senate Finance Committee unanimously endorsed the proposal late Friday, sending it to the Senate as time was running out in the legislative session. Lawmakers adjourn on Saturday.

It remains uncertain whether Republican Gov. Susana Martinez will back the proposal.

The measure would reduce the corporate income tax rate from 7.6 percent to 5.9 percent. The governor has advocated a similar proposal.

Currently the state provides cities and counties with revenue to offset what they lost when New Mexico lifted taxes from food and medical services. That "hold harmless" provision would end over 10 years — raising local taxes to save the state money.

Copyright 2013 The Associated Press.