The massive tax bill just passed the halfway point in the Roundhouse after hours of debate on the House floor.
SANTA FE, N.M. — After several hours of debate on the House floor, a massive tax bill just passed the halfway point in the Roundhouse.
Members of the House Taxation and Revenue Committee say this year’s tax plan includes many of last year’s plans that the governor vetoed, and that the new tax plan should be veto-proof. insisted.
The proposal includes tax credits for energy storage, rural health care workers and even new Mexicans who lost their homes in the recent wildfires. A major highlight is the major update to state income tax classifications.
Currently, individual taxpayers with annual income between $16,000 and $210,000 are taxed at the same rate. Lawmakers want to split it into three different categories while slightly lowering the tax rate for the majority of New Mexicans. The plan is similar for joint filers.
Lawmakers expect most households to save up to $200, but some Republicans say that won’t be enough. They proposed lowering everyone’s tax rate to just 1%, given that the state has billions of dollars in oil and gas funds.
Lawmakers were quick to point out that the plan would cost the state $2 billion, compared to the current proposal, which would cost only about $180 million, which would include significant increases in funding for each state department. It is already included in the budget proposal.
Lawmakers rejected the Republican plan and ultimately approved the complete tax plan with bipartisan support.
