NM Panel Approves Changes To Income Tax
New Mexico – A House committee has endorsed a proposal to raise $90 million next year by eliminating an income tax deduction for some taxpayers.
The measure goes to the House floor for consideration and becomes part of a package of tax measures that will provide more than $400 million next year to help balance the state budget.
Currently, New Mexico allows the same itemized deductions that are used for federal tax purposes. That would change under the bill approved Thursday by the Taxation and Revenue Committee.
The legislation will apply New Mexico's personal income tax to the state and local taxes deducted on a federal return.
Pending in the House are other bills for a surtax on upper-income taxpayers and a half-cent gross receipts tax increase.
Copyright 2010 The Associated Press.