Business leaders call for single sales factor

Changing the New Mexico business climate to invigorate economic growth and jobs was a major theme Thursday at Albuquerque Economic Development’s quarterly investor’s luncheon at the Sandia Resort and Casino.

AED officials particularly called on members to support HB 507 and SB 508 bills pending in the Legislature that would phase in the use of a single sales factor for New Mexico manufacturers. Guests were provided form letters urging passage of the bills, calling the state’s tax code a “major deterrent” to manufacturing expansion and recruitment of new manufacturers.

The single sales factor formula allows corporations to calculate income taxes solely on the amount of their sales in New Mexico.

Brian Rashap, Intel’s New Mexico corporate services site manager, told the crowd of about 540 that the state’s current tax code “penalizes” the company, which has not announced a major expansion at the Rio Rancho plant in four years. Instead, it has invested in expansions in Arizona and Oregon.

“Unfortunately, with that capital is where the jobs go,” he said.