Richardson Vetoes Food Tax
New Mexico – Gov. Bill Richardson has vetoed a proposed tax on food, but signed other tax increases that will raise about $170 million to help balance the state budget next year.
The governor used his line-item veto powers Wednesday to reject a proposal that would have reinstated the gross receipts tax on food at the rate imposed by local governments, which averages about 2 percent statewide.
The food tax was part of a bill with several tax increases. Signed by the governor are provisions to raise the state's gross receipts tax on goods and services by an eighth of a cent, increase the tax on cigarettes by 75 cents a pack and increase personal income taxes for about one-fourth of New Mexico taxpayers.
(Copyright 2010 by The Associated Press. All Rights Reserved.)