Bill > SB274

This bill makes several changes to New Mexico's tax laws, primarily affecting how gross receipts taxes are distributed to municipalities and counties, and how certain deductions and credits are handled. It amends existing laws to adjust the "hold harmless" provisions, which are designed to ensure local governments receive a certain amount of tax revenue even if deductions reduce the actual tax collected. Specifically, it modifies how deductions for food sales and healthcare practitioner services are treated, phasing out certain deductions over time and replacing them with credits or adjusted distributions. The bill also increases the state's working families tax credit from ten percent to fourteen percent of the federal credit and adjusts the maximum municipal gross receipts tax rate that can be imposed. Additionally, it introduces a new credit against gross receipts tax liabilities for municipal gross receipts taxes and modifies administrative fee collection for municipal taxes. Finally, it repeals certain sections related to municipal and county hold harmless gross receipts taxes and includes temporary provisions for outstanding revenue bonds secured by these taxes.