NM Food Tax Proposal Draws Fire

New Mexico – The thought of reinstating the food tax in New Mexico is not winning any popularity contests.

The tax was tossed in 2004. The state said bringing it back could raise up to $228 million in badly needed revenue.

Those opposed to a sales tax on food say it would burden a family of four with an average $250 more in grocery expenses annually.

Think New Mexico think tank Executive Director Fred Nathan said a food tax disproportionately hurts working, low- and middle-income families.

Greater Albuquerque Chamber of Commerce President Terri Cole said repealing the tax hasn't helped low-income New Mexicans.

The Albuquerque chamber opposed the repeal of the food tax and supports reinstating it to help fill the state's budget gap.


Information from: The Daily Times,

Copyright 2009 The Associated Press.