SB 346: TAX REFORM

An Act Relating To Taxation; Reducing The Rate Of The Gross Receipts Tax, Governmental Gross Receipts Tax, Municipal Gross Receipts Tax And County Gross Receipts Tax; Providing For A Flat Income Tax Rate Of Two And One-half Percent On Taxable Income Above Certain Levels; Removing Permission Of A Tax Increment Development District To Issue Bonds Against An Increment Of The Gross Receipts Tax; Repealing The Compensating Tax And Certain Credits, Deductions And Exemptions Pursuant To The Income Tax Act And The Gross Receipts And Compensating Tax Act; Repealing The Corporate Income And Franchise Tax Act, The Estate Tax Act, The Motor Vehicle Excise Tax Act, The Leased Vehicle Gross Receipts Tax Act, The Tax On Boats, Certain Local Option Gross Receipt Taxes, The Supplemental Municipal Gross Receipts Tax Act, The Local Hospital Gross Receipts Tax Act, The County Correctional Facility Gross Receipts Tax Act And The Special County Hospital Gasoline Tax Act; Replacing County Obligations To The County-supported Medicaid Fund And Safety Net Care Pool Fund With State Obligations; Providing Temporary Amnesty From Penalties And Interest On Taxes Not Paid; Providing That The Repeal Of Certain Taxes Shall Not Impair Outstanding Bonds Or Loan Guarantees; Amending, Repealing And Enacting Sections Of The Nmsa 1978

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HIGH SB 346
TAX REFORM

Legislative URL:

SB 346 on nmlegis.gov

Emergency Clause:

No

Germane:

N/A

Location:

S Flr

Action:

[3] SCORC/SFC-SCORC [10] DP/a-SFC [40] w/drn API.

Issue(s):

General Interest

Related Legislators

Bill Sponsor:

William Sharer

Related Documents

Downloads:

Introduced
SCORC Committee Report
Fiscal Impact Report

Summary

This 228-page tax reform bill notably, for tax years beginning on or after January 1, 2016:

• reduces gross receipts tax rates;
• provides for a flat income tax rate of two and one-half percent on taxable income (adjusted annually for inflation) above:
• $141,975 for married individuals filing separate returns,
• $283,950 for heads of household, surviving spouses and married individuals filing joint returns,
• $189,300 for single individuals and estates and trusts; and
• repeals the corporate income and franchise tax act, the estate tax act, the motor vehicle excise tax act, and an assortment of other tax acts;

A possible concern with this bill is the scope of the revamp and the potential effect on the State’s revenues and its ability to fund its agencies at the levels necessary to keep up the work of the agencies. Another potential concern is that reducing the income tax, and raising the level of income to which it applies, may also reduce the interest of taxpayers in making charitable contributions to organizations that engage in public policy work.