Members of the New Mexico State Senate have approved legislation providing tax relief to businesses as well as individuals negatively affected by the COVID-19 outbreak.
Initially approved in the House, the legislation waives penalties and interest for liabilities related to corporate and individual taxes, as well as gross receipts taxes.
The legislation, officially filed as House Bill 6, additionally calls for doubling revenue on a temporary basis until July 1 of next year to local governments, and also sending increased online sales tax revenues to those government units.
The monthly distribution to municipalities will increase from $1.2 million to $2.5 million; while payments to counties will go from $750,000 to $1.5 million.
According to a fiscal analysis of the legislation, the bill’s delayed tax deadlines could “incentivize taxpayers to shift tax payments further into the future, which could shift state revenues into the next fiscal year if tax payers delay filings past July.”
Approved unanimously in both the House and Senate, the legislation is on its way to Governor Michelle Lujan Grisham, who has until July 12 to sign the bill into law.
By Garry Boulard
