No special session on tax overhaul - Albuquerque Journal

No special session on tax overhaul

SANTA FE – It doesn’t look like state lawmakers will take on overhauling New Mexico’s tax code in a special session this year.

An international company hired to study the state tax base expects to issue its final report in December, the month before the Legislature’s regular 30-day session begins.

Supporters of revising New Mexico’s tax system had hoped the study would be completed in the fall, with the possibility of a special session to take action.

But the new timeline is included in a $400,000 contract approved last week with Ernst & Young, one of the largest professional services firms in the world.

In June, a bipartisan council of legislative leaders authorized hiring a company to study the tax code – part of an effort to give the Legislature better estimates on how revising the tax system would affect revenue.

Ernst & Young is under contract to develop a model that will allow legislators to analyze the effects of changes to the rates or structure of New Mexico’s tax system. The focus is on gross receipts and income taxes, both personal and corporate.

House Speaker Brian Egolf, D-Santa Fe, said the hiring of Ernst & Young went through the typical competitive procurement process – something he and legislators aren’t involved in.

But he said that from now to December seems like a reasonable amount of time to develop a computer model that lawmakers could use for years to help evaluate fiscal policy.

“It’s important to get it right,” Egolf said. “We’re looking to make the tax code fair and work better for everyone.”

Republican Gov. Susana Martinez has pushed for quicker action to overhaul the tax system. The proposals she backed died earlier this year in the regular and special sessions of the Legislature.

“Lawmakers spent months studying tax reform before the last session, yet when it came to act, all they could do is propose a study,” Martinez press secretary Joseph Cueto said in a written statement. “Sadly, this is more of what we’ve come to expect from Santa Fe politicians.”

Rep. Jason Harper, a Rio Rancho Republican who has led House efforts to revamp the tax system, said he is “disappointed by this delay.”

“What it means is New Mexican businesses and families are going to suffer even longer now under our broken code,” he said.

Senate Finance Committee Chairman John Arthur Smith, D-Deming, said the state’s tight budget – after a crisis that exhausted cash reserves – makes it especially important for lawmakers to have good information. In the past, he said, state officials have had trouble forecasting the effects of tax legislation.

“We don’t have a lot of room for error,” he said.

Home » Journal North » Journal North Recent News » No special session on tax overhaul


Albuquerque Journal and its reporters are committed to telling the stories of our community.

• Do you have a question you want someone to try to answer for you? Do you have a bright spot you want to share?
   We want to hear from you. Please email yourstory@abqjournal.com

taboola desktop

1
Stewart nominated again for top Senate post
ABQnews Seeker
Democrats in the state Senate agreed ... Democrats in the state Senate agreed Saturday to back the reelection of Mimi Stewart for the chamber's top leadership post, providing some stability at ...
2
Arrest made in death of Calvary Church security guard
ABQnews Seeker
Security officer Daniel Bourne told his ... Security officer Daniel Bourne told his supervisor Friday night that there was a suspicious truck in the parking lot of Calvary Church, sending a ...
3
Electric demand to outpace capacity for New Mexico utilities
ABQnews Seeker
Blackouts feared for 2023, 2024 seasons Blackouts feared for 2023, 2024 seasons
4
New Mexico allows funds for prosecutions in 'Rust' shooting
ABQnews Seeker
DA declines to name potential targets DA declines to name potential targets
5
It 'gave me a purpose'
ABQnews Seeker
Program for disadvantaged young people offers ... Program for disadvantaged young people offers new path as emergency medical technicians
6
Diversity on full display in Corrales Pet Mayor race
ABQnews Seeker
Only two days to cast your ... Only two days to cast your ballots in the race that features eight political animals
7
US awards $73M contract for Navajo-Gallup water project
ABQnews Seeker
Arizona company will build two pumping ... Arizona company will build two pumping plants
8
Probation violation arrest turns up arsenal at SW ABQ ...
ABQnews Seeker
Officers also found drugs and ammunition Officers also found drugs and ammunition
9
Jury convicts ABQ man in 2019 shooting death
ABQnews Seeker
Defense attorneys told jurors the death ... Defense attorneys told jurors the death was a 'tragic accident'