SANTA FE – State lawmakers in the Republican minority are crafting a proposal that would return some of the state’s budget surplus to taxpayers rather than spend it on government programs and services.
Republican House Whip Rod Montoya of Farmington said his caucus is drafting a pay-back proposal as well as a bill to lower New Mexico’s gross receipts tax rates on sales and business transactions. The Legislature will reconvene in January.
The gross receipts tax provides for about half of annual state government general fund spending. Its critics say exemptions and loopholes have led to unnecessarily high rates for most residents.
Rates vary by location from just over 5% to nearly 9%.
Lawmakers plan to meet Wednesday with taxation officials to discuss New Mexico’s use of tax breaks in rebates.