Updated: November 17, 2021 01:30 PM
Created: November 17, 2021 10:18 AM
ALBUQUERQUE, N.M. – Gov. Michelle Lujan Grisham announced Wednesday she plans to cut gross receipts taxes statewide for the first time in 40 years.
The governor announced the plan during an address at the Albuquerque Economic Forum where she outlined a 0.25% cut in the gross receipts tax rate. The cut would reduce the gross receipts tax rate from 5.125% to 4.875%, which the governor claims would be a $145 million annual tax cut, totaling to be around $1.5 billion over 10 years.
“Reducing the gross receipts tax rate will provide valuable tax relief to New Mexico families and businesses while adding a competitive advantage for New Mexico businesses,” Taxation and Revenue Cabinet Secretary Stephanie Schardin Clarke said. “New Mexico recently expanded its gross receipts tax to include internet sales. That new revenue source paves the way to lower the gross receipts tax rate for the prosperity of all New Mexicans.”
According to the state's Taxation and Revenue Department, the statewide rate was last decreased in 1981. The statewide gross receipts tax rate last changed in July 2010 when the rate increased from 5% to 5.125%.
The governor also detailed "record exports" a 4% overall growth in the last two years during her address at the economic event.
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