This bill is up in House Tax on Wednesday.
Handicapping the likelihood of tax bills in the New Mexico Legislature is really hard because they are compiled behind closed doors. Last year the Legislature was rather ambitious and wound up with a disastrous bill that even Gov. Lujan Grisham didn’t like.
The Legislature seems to be far less ambitious this year and with only 30 days to pass something, that’s no surprise. House Bill 252 would be a bill worth including as it provides tax relief (targeted at lower income levels) for income tax payers in New Mexico. It is sponsored by Rep. Lente, a Democrat and chair of the House Tax Committee. You can read the analysis here.
The rates would be: 1.5%, 3.2%, 4.3%, 4.7%, 4.9%, and 5.9%. The tax reduction would start out around $150 million and would rise somewhat over time. While this is by no means the tax reform/reduction we’d design, it is worthy of support and worth consideration by the Legislature.
Perhaps they would consider adding a provision to index these tax rates to inflation?