Bill > SB211

This bill proposes to: 1. Increase the corporate income tax rate over five years, with the tax rate starting at 4.8% for taxable income up to $500,000 and increasing to 6.4% for income over $500,000 in 2022, eventually reaching 6.4% for income up to $1,000,000 and 7.6% for income over $1,000,000 by 2026. 2. Decrease the gross receipts tax rate and the compensating tax rate (the excise tax on the use of tangible property, licenses/franchises, and services) from 5.125% to 5% for both taxes. 3. Adjust the distributions of the compensating tax to the Small Cities Assistance Fund and the Small Counties Assistance Fund to keep the total amount of the distributions the same, even with the reduced tax rate. The bill aims to balance the state's tax structure by increasing corporate income tax rates while decreasing the gross receipts and compensating tax rates, with the goal of generating more revenue from larger corporations while providing some relief for businesses and consumers.

Budget and Finance

https://www.nmlegis.gov/lcs/legislation.aspx?chamber=S&legtype=B&legno=211&year=21