Bill > HB367

This bill: 1. Amends the Gross Receipts Tax Act to set the gross receipts tax rate at 4.625% (previously 5% prior to July 1, 2023, and 4.875% beginning July 1, 2023). The rate can be increased to 4.875% if gross receipts tax revenues in a fiscal year are less than 95% of the previous fiscal year's revenues. 2. Amends the Compensating Tax Act to set the compensating tax rate at 4.625% (previously 5% prior to July 1, 2023, and 4.875% beginning July 1, 2023). The rate can be increased to 4.875% if the gross receipts tax rate is increased. 3. Expands the deduction for sales of professional services (accounting, architectural, engineering, information technology, legal, and payroll services) from just sales to manufacturers to sales to any sole proprietorship, LLC, partnership, or corporation that is registered for gross receipts tax or an equivalent tax in another state. 4. Provides that the effective date of the bill is July 1, 2023.

Budget and Finance

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=367&year=23