Another story on New Mexico’s film industry in decline (and an update on San Juan County’s taxpayer funded studio)

At the Rio Grande Foundation we have consistently documented the rise and subsequent fall of New Mexico’s heavily taxpayer-funded film industry. Up to 40% of the cost of filming is paid for by New Mexico’s taxpayers and yet, as Channel 13 KRQE reports, “What was once a robust industry bringing in millions of dollars, is now a shell of its former self, with a drastic drop-off in work for both on-screen and behind the scenes New Mexicans.”

This is hardly new considering that New Mexico has a long track record of subsidizing specific industries rather than reforming its anti-business gross receipts tax or reducing/eliminating taxes like the personal or corporate income taxes. So, we are left with the following from film advocates who will likely push for “added incentives from Santa Fe that bolster production for locally-based filmmakers.” It’s unclear just how much New Mexico would be willing to subsidize.

As a quick reminder, Santa Fe Studios which not only receives the 40% rebate, but ALSO was built with a heavy infusion of taxpayer money, has been for sale for a full year. 

Also, San Juan County received $1 million in state capital outlay funds back in 2019 to build a studio to attract independent and major filmmakers to northwest New Mexico, but according to the County they haven’t had a single paying customer. 

Rather than picking winners and losers with our tax dollars, the Legislature (and future governor) should focus on making New Mexico more business friendly. As Sen. Finance Committee Chair George Munoz recently said, it is time to reduce New Mexico’s personal income tax.