Tax package heads back to House after Senate passage

SANTA FE — As the sun dipped toward the horizon on Monday, Republicans on the Senate floor of the state Capitol had been asking questions for hours about the tax package that’s making its way through the Roundhouse.

Despite senators disagreeing with some of its content, particularly clean energy tax credits and the absence of an alcohol excise tax increase, the tax package had bipartisan support and passed by a 26-13 vote.

There was bipartisan opposition to the legislation. Four Democrats joined the nine Republicans that voted against House Bill 252.

In the Senate chamber, Republicans said they disagreed with clean energy tax credits and wanted to see more in the package to help businesses and address crime issues.

Sen. Greg Nibert, R-Portales, said about three-fourths of the tax package is good. He voted for its passage.

“That’s just the way it goes, kind of like the budget,” he said.

Sen. Cliff Pirtle, R-Roswell, failed to gain passage of an amendment that would have indexed Social Security, which the Legislature passed last year but Gov. Michelle Lujan Grisham vetoed. The amendment failed on a 20-15 vote.

It wasn’t all disagreement. Personal income taxes in this package would be reduced by about $175 million, which drew support from Sen. Mark Moores, R-Albuquerque. However, he said not to applaud lawmakers too much for the reduction, since the Legislature has raised the taxes in past years.

Some Democrats also had voiced concerns about the bill, mainly over its lack of change to the alcohol excise tax, including Sens. Antoinette Sedillo Lopez, D-Albuquerque, and Harold Pope, D-Albuquerque.

Sedillo Lopez said it’s difficult to vote for a bill that doesn’t address the excise tax, taking into account the “incredible costs that alcohol misuse” produces in New Mexico.

The Senate heard similar sentiments from Sen. Bill Tallman, D-Albuquerque, earlier in the day when discussing the budget. He said the tax hasn’t been increased in 30 years and would need to be doubled today to maintain the same value it had three decades ago.

Majority Floor Leader Peter Wirth, D-Santa Fe, said he respects the concerns senators have on the lack of changes to the alcohol tax, and that something needs to be done about it.

“At the end of the day, I think what everyone needs to do is look at the total package and kind of weigh the pros and cons,” he said.

The tax bill now goes back to the House for approval of changes made by the Senate, and then on to the governor.