Anytime the New Mexico Legislature is in session, the threat of tax hikes is real. Of course, with $300 million in “new money” from oil and gas not to mention an expected $50 million from legalizing marijuana, and untold amounts of federal spending thanks to the passage of “Biden bucks” there is no need for higher taxes.
That hasn’t stopped Democrats in the Legislature from pushing for higher taxes. Here are the ones that we are aware of which have passed one house or another. There are plenty of bad bills still moving, but if you know of other tax hikes still moving please let us know.
HB 291: which just passed the House raises the top income tax rate to 6.5% AND would allow property tax assessments for housing units that are not owner-occupied (possibly houses AND apartments in addition to the primary target, 2nd homes) to rise by up to 10% every single year.
Also, according to the Legislature’s own fiscal impact report, “The bill creates a cliff effect by excluding any business sold for a net capital gain of greater than $1 million from the eligible capital gains tax deduction. A taxpayer who sells a New Mexico business resulting in net capital gains of $1,000,001 is ineligible to claim any capital gains tax deduction related to the sale, creating significant inequity for that taxpayer and a taxpayer who receives the deduction for a sale worth $1 less.
HB 122: imposes a health insurance premium surtax, which the bill proposes to raise from 1 percent to 3.75 percent. It would raise taxes on health insurance policies by $208.7 million annually. It has passed the House.