ALBUQUERQUE — Gov. Michelle Lujan Grisham said Wednesday that a statewide cut in gross receipts taxes will be on her agenda when the Legislature meets in January.

She made the announcement during an economic development event Wednesday in Albuquerque. The first-term Democratic governor is running for reelection and has been battling criticism over her handling of the pandemic and economic fallout among businesses across the state.

The proposal would trim New Mexico’s gross receipts tax rate by 0.25 percent, putting the rate at 4.875 percent. The Governor’s Office said the proposed reduction would save New Mexicans an estimated $145 million annually.

Supporters also say it would help ease the pyramiding that results from the state’s tax policies.

“Cutting gross receipts taxes for the first time in decades will put more money in the pockets of New Mexico families and businesses,” Lujan Grisham said in a statement. “We have the tools to continue building long-lasting economic success — we just have to be bold enough to use them.”

Lawmakers are expected to be under less pressure when they meet to set spending priorities and hash out the budget in January, as New Mexico is expected to be flush with cash.

New Mexico Taxation and Revenue Cabinet Secretary Stephanie Schardin Clarke said since the state recently expanded its gross receipts tax to include internet sales, that new revenue source paves the way to lower the gross receipts tax rate. She said reducing the rate also adds a competitive advantage for New Mexico businesses.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

(19) comments

John Garcia

Lowering GRT great idea and that may boost the failing economy. Is there anyway Gov. MLG can lower property taxes? We are seeing property tax increases annually...why penalize homeowners? We are afraid to maintain and improve our properties cause that means more tax. County assessor blames all property tax increases on State.

Charles W Rodriguez

Well, an insignificant step in the right direction. The GRT is probably the single most repressive tax discouraging manufacturing business in NM. So many other states do well without this kind of repressive tax. If NM truly wants to help growth of the state, this tax needs to be done away with.

Khal Spencer

What Charles said.

Emily Koyama

Other items that should be on her

agenda.....eliminating State income tax on social security benefits and veterans retirements.

Laurie Buffer

[thumbup]

Mike Johnson

[thumbup]Exactly, and 1/4 of 1 % reduction in GRT is chump change and will do nothing but virtue signal. It should be cut in half.

Richard Irell

The state GRT rate is currently 5.125%.

MLG is proposing a reduction in the rate to 4.875%.

That is roughly a 5% decrease in the rate.

Mike Johnson

Yes, do the math, 5.125% minus .25 (1/4 of 1%, as I said), is 4.875%. Oh, but you want to make it sound "big", so let's use 5% in a different calculation.....right.

Emily Koyama

Even using your calculation method 5% is still inadequate..... MLG just wants to have a campaign sound bite she can use saying she "reduced GRT".

Richard Irell

A lot of people would be happy to get a 5% raise.

If MLG had suggested raising the GRT by 0.25%, I have no doubt that you would be calling it a 5% increase, not an insignificant one-quarter of bone percent.

Russell Scanlon

Amen to that—double taxation.

Richard Irell

As a whole, seniors are financially better off than people in their 20s, 30s, & 40s.

The people who need help are the young families, not a bunch of greedy geezers.

Emily Koyama

"As a whole"?

What about the lesser of the "whole"; maybe 30 to 40 percent of seniors who rely on Social Security or veterans disability/retirement benefits as a sole source of income, which is currently being eaten away by climbing inflation? These people paid into Social Security, and/or served their country.

As for the ones that are better off, perhaps they EARNED IT.....a novel concept, you know, where people work for 40 or 50 years, and save, so they can be financially secure in old age.

"Greedy geezers".

Jeez.

Mike Johnson

[thumbup][thumbup] Well said Emily, but some want to use ageist slurs to promote more division and polarization in the country, must be a left winger......

Richard Irell

Yes, as a whole. If you want to help people who need the help the most, target those who are most in need. Giving tax breaks to people like me based on age, not income, is the wrong approach.

You want to give tax breaks to the 60% to 70% of seniors who don’t need it.

I have had a very fortunate life, paid into social security, served my country (not a retiree) and don’t see any reason why any portion of income should be exempt from taxation.

BTW, Social Security is indexed for inflation and has been for a long, long time.

Yours in geezerhood.

Ernest Green

There is both a low income tax exemption and low income tax credit in the NM tax code. Both work exactly how you're describing and target low income seniors for tax relief rather than seniors as a block. Similarly SS benefits are indexed to inflation.

JB Weinberg

Agree with you, Emily! [thumbup]

Emily Koyama

Replying to Richard, above.

So happy for you that you're well off, and are fine with being taxed by the Federal Gov't as well as the State on your social security benefits.

You may not be aware, but Medicare premiums are set to jump much higher, which will negate

most if not all of the "indexed increases" for many social security recipients who recieve less than $800.00 per month.

Taking inflation of other things into account, those people will see a net decrease in real income.... But the heck with them, they're just greedy old geezers, right?

Richard Irell

The Centers for Medicare & Medicaid Services has announced Medicare Part B premiums for 2022, and the base premium increases 14.5% from $148.50 a month in 2021 to $170.10 a month in 2022. That $21.60 monthly increase ($260 a year).

Last month’s Social Security Administration’s COLA announcement: a 5.9% cost of living adjustment for 2022. The average Social Security benefit for a retired worker will rise in 2022 by $92 a month to $1,657 in 2022, while the average benefit for a retired couple will grow $154 a month to $2,753.

$21.60/month increase in Medicare premiums, $92/month increase in average Social Security benefits. That's about a $70 delta. And someone receiving only $800/month in SS would see a $45 increase in COLA. Hardly negating most if not all.

Why are you so opposed to reducing taxes on all low income people? Why give breaks to well off seniors when so many young families are struggling?

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