The New Mexico House of Representatives has just approved a massive tax package after hours of debate on the House floor. The proposal includes various tax credits, including those for energy storage, rural health care practitioners, and New Mexicans affected by recent wildfires. The most significant aspect of the tax package is a major update to the state’s income tax brackets. Lawmakers want to create three different brackets and slightly lower the tax rate for the majority of New Mexicans. The lawmakers expect most families to save up to $200, but some Republicans proposed an even lower tax rate of just 1% due to the state’s significant oil and gas funds. This proposal was ultimately rejected, and the full tax package was approved with bipartisan support.
The tax package is being hailed as un-vetoable, as it incorporates aspects from last year’s tax package that were vetoed by the governor. The House Taxation & Revenue Committee insists that the tax package is affordable, costing around $180 million, which has already been accounted for in the state budget proposal. Additionally, the budget proposal includes major funding boosts for every state department. Despite some opposition, the tax package was eventually approved with bipartisan support, marking a significant milestone in the legislative process.
The approved tax package in New Mexico involves a major update to the state’s income tax brackets, tax credits for various groups, and substantial funding boosts for every state department. The cost of the package, which is around $180 million, has been included in the state budget proposal, further ensuring its viability. The rejection of a proposed 1% tax rate by Republicans has resulted in bipartisan support for the full tax package, indicating a positive step forward in the legislative process.