Robert Knott, Santa Fe New Mexican
Lawmakers on Monday unveiled a comprehensive tax bill that provides many deductions and relief for most taxpayers statewide. But that falls short of Gov. Michelle Lujan Grisham’s efforts to provide hefty rebate checks to residents in states battling inflation and the after-effects of COVID-19.
Those expecting rebates in the $750 to $1,500 range are the numbers Lujan Grisham quoted in his state speech. Trying to keep the rebate.
Under House Bill 547, taxpayers filing individual returns can expect $300 and married couples can expect $600.
Rep. Derrick Lente, Democrat Sandia Pueblo, chairman of the House Tax and Revenue Committee, said the reduction in personal tax refund checks was part of an effort to avoid depleting the nearly $1 billion tax policy package fund. said to be part of
“If we had followed that rationale, we would have completely lost the ability to do anything tax-wise for the state,” he said at a press conference after the commission approved the bill 9-5 on Monday. ” he said.
“We reduced that to $300 per single filer and $600 per couple filer. We can make creative tax structure policy changes,” Lente added.
He admitted that the governor is not in favor of cutting kickbacks.
“She’s not OK with that,” he said. “There have been discussions that their sweet spot would be $500 for singles and $1,000 for married couples. That being said, we’re hundreds of dollars away from that goal.
“But despite this, we believe that initiatives targeting rural health care, which target other initiatives in this tax system, far outweigh these one-time payments.”
But Rujan Grisham isn’t giving up, said her spokeswoman Maddy Hayden.
“The governor has made it clear to leaders that a hard-working New Mexican family deserves more than $300,” Hayden wrote in an email. I fully expect Congress to raise that number to at least $500 on a single file.”
Five Republicans on the committee voted against House Bill 547. Some Republicans said the bill contained positive elements, but they also said they wanted to help small businesses, especially those still reeling from COVID. He said it would not address the needed job expansion initiative or address the I-19 pandemic.
“What we’re doing is good for them[New Mexicans]but we’re putting a band-aid on the problem,” said R-Artesia Rep. Jim Townsend.
The Democrats on the Commission advocated for this tax, providing tax exemptions for low- and middle-class income earners and a child income tax credit for eligible taxpayers, thereby helping New Mexicans statewide. Help, claimed to reduce state gross income tax by 0.5. %.
“It’s a few, but it’s a lot of money,” House Speaker Javier Martinez (D-Albuquerque) said of the GRT decline. “I think this is very good for business.”
On the other hand, the highest taxable income tier (a couple earning more than $500,000 and filing jointly) will pay a tax increase from 5.9% to 6.9%.
Lente said the process of putting together HB 547 involves combining some of the best elements of about 50 separate tax policy bills that have been put forward during the 60 days of Congress this year.
He said all committee members, not just analysts on the Legislative and Finance Committee, had a role in shaping the bill.
Martinez said during a committee hearing that legislators should combine various tax bills into one package. Otherwise, it’s almost impossible to figure out how it will affect the processing capacity of “House Bill 2,” the state’s operating budget law, he said.
He said there is nothing in HB 547 that has been “fully vetted, fully cooked, fully baked and not fully fried” by financial analysts.
Among the bill’s highlights:
• Check reimbursement of $300 for individual taxpayers and $600 for couples.
• A low-income tax policy element that provides a range of tax refund exemptions for individuals, over 65s, blind residents and children.
• Rural health worker credits of up to $5,000 for doctors, dentists, podiatrists, and other health care professionals and up to $3,000 for pharmacists, dental hygienists, nurses, midwives, and other health care professionals.
• A child income tax credit of up to $600 per child, depending on the taxpayer’s gross income.
• A refundable electric vehicle income tax credit of $2,500 for each electric vehicle purchase or $4,000 for households below the federal poverty level of 200%.
Amber Wallin, executive director of the Albuquerque-based advocacy nonprofit New Mexico Voices for Children, said in an email after the vote that the bill would be “a big win for the entire state. Children’s tax credit.” It is truly a smart tax code that will improve economic opportunity and equity for New Mexico families, workers, and communities by improving personal income taxes and reimbursement for low-income earners.”
She called the GRT cut “significant” and said it would “benefit all residents and businesses in the state.”
Others were not so free.
During the hearing, some representatives of alcohol companies said the proposed excise tax on beer, wine and spirits, at 15 cents per gallon or liter, would significantly raise product costs by as much as 37 percent for beer alone. rice field. Premier Brewing Company.
More than half of the money from the alcohol excise tax hike will go to the new Alcohol Harm Reduction Fund, Lente said.
State Department of Health statistics show that 2,273 New Mexicans will die from alcohol-related causes in 2021, and lawmakers have vowed to do something to address the effects alcohol has on the state. increase.
Lente said HB 547 will next be considered by the House of Representatives, possibly as early as Wednesday. Assuming it clears the House floor, it will go to the Senate.
