Updated: 02/13/2014 9:27 AM |
Created: 02/13/2014 9:25 AM
By: The Associated Press
SANTA FE, N.M. (AP) - New Mexico would lift its tax on parts and labor for maintaining aircraft under a proposal that has passed the House.
Republican Rep. James White of Albuquerque said Wednesday that New Mexico needs to remove its gross receipts tax from aviation maintenance, such as replacing tires, to prevent aircraft owners from using repair shops in other states with tax exemptions. No tax is charged in neighboring states such as Colorado, Texas and Arizona.
The bill passed the House on a 52-14 vote and heads to the Senate for consideration.
Opponents objected to creating another tax break for businesses.
The Taxation and Revenue Department estimates the state and local governments would lose about $500,000 in revenue each year if the tax break becomes law.
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