New Mexico

Bill to change tax income passes first House committee

Published

2 years ago

January 30, 2024

Bill to change tax income passes first House committee

Taxes aren’t the most exciting things to talk about, but it could be good news for some taxpayers if House Bill 252 goes through.

SANTA FE, N.M. – Taxes aren’t the most exciting things to talk about, but it could be good news for some taxpayers if House Bill 252 goes through.

The current state income tax breakdown has five brackets. Anyone making $16,000 to $210,000 a year are paying the same income tax rate.

Joint filers have an even bigger range of $24,000 to $315,000 at 4.9%. Some lawmakers want to break up those brackets.

“This tax proposal, which is the same thing as last year, takes into account that we are looking to achieve the best outcome for those that are at the lower to middle of the tax income brackets,” said state Rep. Derrick Lente.

Here are the proposed changes:

There would be more brackets for joint filers, and adds a 4.3% rate. The brackets are spread out more evenly, and there’s a lower tax rate for the state’s lowest earners. It’s the same thing for individual filers.

The average income in New Mexico is around $30,000. Right now, that puts you in the second-highest tax bracket at 4.9%. This bill would drop you two brackets to 4.3%.

The bill unanimously passed its first House committee Monday. Last year, it had bipartisan support all the way to the governor’s desk, where she vetoed it.

Sponsors are hoping for a different outcome this session.

“She is the one that killed it last year, and so I can say that I’ve talked with staff of the governors. And so at this point in time, I have no indication that she could not appreciate giving tax incentives for working class New Mexicans,” said Lente.

KOB 4 spoke with a tax expert Monday. He says this current structure has been in place since 2003, and it’s pretty much a flat tax system where most people are paying the same rate, which hurts lower earners more.

What he really liked about the new layout is there are no “losers” as he put it, meaning no one’s taxes increase. But it does have one downside.

“No one would be offended by this bill, or almost no one is just, you know, it comes with a price tag. It’s probably the right thing to do in terms of restructuring our brackets, that that makes some sense,” said Richard Anklam, president and executive director of the New Mexico Tax Research Institute.

That price tag is an approximate $180 million in income tax the state would not get next year.

The Legislative Finance Committee already determined lawmakers have a $200 million to $300 million range in lost taxes before it becomes troublesome. This proposal fits those parameters, but there’s not much wiggle room.

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New Mexico

New Mexico Public Education Department faces $35 million shortfall

Published

10 hours ago

January 9, 2026

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New Mexico Public Education Department faces million shortfall

The New Mexico Public Education Department is facing a $35 million deficit, which it attributes to overpayments made to Gallup-McKinley County Schools, a claim the district disputes, arguing they are being wrongly blamed for the state’s funding mismanagement.

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New Mexico

New Mexico deserves speedier game commission appointments

Published

22 hours ago

January 9, 2026

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New Mexico deserves speedier game commission appointments

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New Mexico

What bills have been filed for New Mexico’s 2026 legislative session?

Published

1 day ago

January 8, 2026

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What bills have been filed for New Mexico’s 2026 legislative session?

The governor sets the agenda for the session, including for the budget, so here is what they are looking at so far.

SANTA FE, N.M. — As the regular session of the New Mexico Legislature is set to begin Jan. 20, lawmakers have already filed dozens of bills.

Bills include prohibiting book bans at public libraries and protections against AI, specifically the distribution of sensitive and “Deepfake” images

Juvenile justice reform is, again, a hot topic. House Bill 25 would allow access to someone’s juvenile records during a background check if they’re trying to buy a gun.

Gov. Michelle Lujan Grisham sets the agenda and puts forth the proposed budget lawmakers will address during the session. The governor is calling for lawmakers to take up an $11.3 billion budget for the 2027 fiscal year, which is up 4.6% from current spending levels.

Where would that money go? More than $600 million would go to universal free child care. Meanwhile, more than $200 million would go to health care and to protect against federal funding cuts.

There is also $65 million for statewide affordable housing initiatives and $19 million for public safety.

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