Ernst and Young: NM Business Taxes Among Highest in Nation

Sure, the Rio Grande Foundation has been saying it for years: New Mexico’s tax burden makes the state a difficult place to do business. Now, the respected accounting firm Ernst & Young has reinforced those findings with a new study which shows New Mexico to have one of the heaviest business tax burdens in the nation.
The main culprit is the relatively heavy tax burden placed on business inputs by state and local government. Unfortunately, it is our gross receipts tax which is unique in the country for its high rates and broad base that cause this problem. I don’t know if the momentum is there on either side of the aisle for reform at this point, but changes are in order before the gross receipts tax gives New Mexico the heaviest business tax burden in the nation.