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Gov. Lujan Grisham Signs Tax Relief Bill

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Kevin Meerschaert
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KSFR-FM
Gov. Michelle Lujan Grisham is joined (L-R) by Sen. Benny Shendo (D-22), AARP State Director Dr. Joseph Sanchez, Rep Christine Chandler (D-43), Senator Michael Padilla (D-14), Senator Peter Wirth (D-25) , and State Tax and Revenue Secretary Stephanie Schardin Clarke at the Tax Relief Bill signing. HB 163

Governor Michelle Lujan Grisham has signed the comprehensive tax reform bill passed this year by the legislature.

   The bill includes the elimination of the state income tax on most social security payments, provides a 2022 tax credit for nurses employed in New Mexico hospitals, and creates a temporary child tax credit.

It also includes a temporary tax exemption for military retirement pay and extends the solar market development income tax credit through 2032.          

It also expands the cap and makes the credit refundable and transferable. 

Governor Lujan Grisham says one of the pieces of the bill that will benefit all New Mexicans is the first reduction of the gross receipts tax for businesses in decades.

“We’re getting to a quarter-percent over two years. This saves consumers and it saves businesses, particularly those small businesses that are just starting out,” she said. “If they have to charge more for their service or product they are eliminating some of the folks that they need to get through the hardest part, that first year, that second year, that third year.”

       The bill does allow municipalities to increase the gross receipts tax if its overall revenues decrease by more than five-percent, but the Governor and Senator Peter Wirth say it should be a few years before that becomes a possibility. 

The reduction is expected to save taxpayers 94-million dollars the first year and 194-million the second year of implementation.   

Kevin Meerschaert comes to Santa Fe from Jacksonville, Florida where he spent the past 20 years covering politics, government and pretty much everything else.