Richardson: No Decision On Food Tax

New Mexico – Gov. Bill Richardson says his administration is studying whether he can use his line-item veto powers to reject a proposed tax on food.

But Richardson said Monday he hasn't decided whether to sign or veto more than $230 million in tax increases passed by the Legislature during a special session to balance the budget.

The food tax proposal is part of a bill with other tax increases, including an eighth-cent increase statewide in the gross receipts tax.

The legislation will reinstate part of the gross receipts tax on food, averaging about 2 percent. The tax was lifted in 2005.

Richardson said he doesn't like the food tax because it's regressive. The tax will generate $68 million.

Copyright 2010 The Associated Press.