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Northern NM fire victims will be spared additional taxes under provision approved by Legislature • Source New Mexico

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Northern NM fire victims will be spared additional taxes under provision approved by Legislature • Source New Mexico


Those who hired lawyers to help them get compensation for losses to the biggest wildfire in state history won’t have to worry about additional taxes on legal services if Gov. Michelle Lujan Grisham signs the tax package sent to her by lawmakers last month. 

But at least one elected official in the burn scar and a municipal advocacy group oppose the measure, saying it will deprive local governments that are also struggling after the Hermits Peak-Calf Canyon Fire of sorely-needed tax dollars. And the legislation’s sponsor ultimately withdrew his support in fear of how the measure could harm those small governments.

The tax measure approved by the Legislature gives tax credits to law firms for gross receipts taxes, which are basically sales taxes, on services they provide to victims of the fire. Law firms can only get the tax credit if they don’t pass the taxes onto fire survivors in their bill for services. 

Lujan Grisham has until March 6 to sign the tax bill into law. 

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After the U.S. Forest Service accidentally ignited the 530-square-mile wildfire in spring of 2022, destroying hundreds of homes, local and national law firms arrived and began soliciting clients. Congress in late 2022 approved nearly $4 billion to compensate victims of the fire. In the same law, Congress capped payments to law firms at 20% of compensation they secure on behalf of clients.

 

They lost everything in New Mexico’s biggest wildfire. Now they’re sounding the alarm for others.

Those legal services, like all goods and services in the state, are taxed by states and localities. The gross receipts taxes on legal services for Hermits Peak-Calf Canyon survivors are estimated to be about 7%, split among the state, counties and towns. 

A $100,000 payment to a fire victim who hired a lawyer, for example, would mean $20,000 would go to lawyers, and then there would be an additional $1,400 in taxes on that payment levied on the fire victim without the legislation.

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State senator Leo Jaramillo (D-Española) sponsored the legislation this session and said getting rid of the tax on survivors would let them keep more of the money they’re owed. Local law firms and advocates for fire victims spoke in favor of the proposal. 

But as the bill wound through committee and ended up in the overall tax package, Jaramillo grew increasingly concerned about the impact it would have on local governments, he told fellow lawmakers. He mentioned there could be a substitute bill that would have “held harmless” local governments like the City of Las Vegas and Mora County, but it was never introduced. 

Administratively, it would be “extremely difficult” for the New Mexico Taxation and Revenue Department to apply the tax credit for law firms only on the state’s portion of the credit, while still sending the revenue to local governments, department spokesperson Charlie Moore told Source New Mexico

When the New Mexico Senate deliberated an 88-page tax package that included the provision, Jaramillo ultimately voted against it, saying that he was withdrawing support because local governments would be harmed. 

A car promoting Mora County Commissioner Veronica Serna is parked outside the polling site at the Ledoux Volunteer Fire Station during the 2022 election. (Photo by Patrick Lohmann / Source NM)

Still, the Senate approved the tax reforms Feb. 12 by a vote of 26-13, and the legislation was sent to the governor for her signature. Jaramillo has not responded to repeated requests for comment since that vote.

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While the 30-day session was ongoing, the three-member Mora County Commission voted 2-1 on a resolution supporting the bill, saying that the Commission believes landowners and residents “should not be penalized, through the imposition of gross receipts tax, for having elected to be represented by legal counsel.”

The Feb. 9 resolution also said “it is understood” that a substitute bill would allow local governments like Mora County to continue to collect their portion of the taxes, although that ended up not being the case.

Mora County Commissioner Veronica Serna was the lone vote against the resolution. She noted that the gross receipts tax is imposed on law firms, not their clients, and so Mora County could still collect the taxes it needs if law firms simply paid the tax instead of passing it on. 

“So the vendor should be paying that tax if they really want to help the claimant, not expect the state of New Mexico or any of the counties to take it,” Serna said in an interview. “Because the State of New Mexico and Mora and San Miguel Counties, we’re victims as well.”

In response, Brian Colón, a lawyer with law firm Singleton Schreiber and former state auditor, told Source NM that the law Congress passed means law firms like his are already receiving less than their usual 33% cut, and that the legislation is an effective way to prevent fire victims from having to pay additional taxes on the funds they deserve. 

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In the scar of New Mexico’s largest wildfire, a legal battle is brewing over the cost of suffering

“I’m very pleased that the legislature decided that those individuals who opted to hire attorneys will not have a gross receipts tax implication on that transaction,” he said. “And that makes me very happy. It’s the right outcome.”

It’s not clear how much of an impact the wildfire and subsequent floods had on Mora County’s tax revenues, according to online records. In the fiscal year leading up to the fires, the county received $317,000 in gross receipts tax revenues, comprising 11% of its $2.9 million budget. 

It’s also hard to estimate how much in taxes the county could make from legal services provided to fire victims, Serna said. 

A legislative analysis on the tax bill, while noting how difficult making a calculation would be, guessed that the state could give up between $7 million and $12.5 million in tax revenues in the upcoming fiscal year if the provision becomes law. The bill limits the amount in credits given to law firms to $5 million every year, a cap Colón said firms were very unlikely to hit. 

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The New Mexico Municipal League also weighed in against the provision, saying that “revenue loss could be especially detrimental to municipalities in fire affected areas, which may need to provide additional services to residents impacted by the fires.”

The Federal Emergency Management Agency is overseeing the compensation fund. As of Feb. 14, it had paid $391 million to individuals, government bodies and nonprofits, or about 10% of the total allocated by Congress. FEMA officials have said they hope to pay out $1 billion by Jan. 1, 2025.



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New Mexico Star Habtom Samuel Finally Earns His First NCAA Cross Country Title

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New Mexico Star Habtom Samuel Finally Earns His First NCAA Cross Country Title


When it comes to championship racing, timing is everything.

New Mexico’s Habtom Samuel certainly knew this heading into the NCAA Cross Country Championships at the Gans Creek Cross Country Course in Columbia, Missouri, on Saturday.

Making matters more pressing, though, was the fact that the University of New Mexico junior had finished second at nationals over the prior two seasons—in 2024, in fact, he lost one of his spikes and still finished second overall.

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This time, though, he didn’t want to leave a doubt.

And that’s exactly what Samuel did, unleashing a spectacular move with 1,500 meters left to pull away from the field and claim his first individual win in a time of 28:33.9 over 10,000 meters. Meters from the finish, Samuel drew out his arms and weaved his way to the finish, soaking in the moment.

“I said to my coach, ‘I’m going to surprise you guys today,’” Samuel told reporters afterward. “I wanted to be patient. I understood the game and made a good decision.”

Samuel’s 1,000-meter split over the ninth kilometer was 2:37.4, a time that equals out to a 4:13 mile. That surge mattered in the long run, because it put distance between him and his competition. In fact, it put him three seconds on Wake Forest’s Rocky Hansen and Oklahoma State’s Brian Musau, and four seconds on Oklahoma State’s Denis Kipngetich and five on Washington State’s Solomon Kipchoge.

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“I kind of planned on not coming with the guys through 400 (meters) or something,” Samuel said. “I know some guys at 1,500, maybe they gonna kick me out, so I prefer to just run longer and just run hard. That was my plan.”

Hansen, the first American collegian to finish and one of just two inside the top 10, was second in 28:38, while Kipchoge was third in 28:40.1. Musau was fourth, while Oklahoma State’s Fouad Messaoudi and Kipngetich were fifth and sixth.

All were vying for the win down the stretch.

How The Men’s NCAA Cross Country Championships Shook Out

It wasn’t all bad news for the Oklahoma State men, though.

The Cowboys totaled a low of 57 points, winning their second championship since 2023 under head coach Dave Smith.

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The win was also a bit of validation for the 19-year head coach, who in the days leading up to the championship was involved in a somewhat heated discussion about the use of international athletes on NCAA rosters.

In a story by the Desert News that published before NCAAs, BYU coach Ed Eyestone commented on the proliferation of overseas companies specializing in the signing of African runners to U.S. colleges for fees, saying “I always felt I’d be embarrassed to have seven foreigners on the team.”

Oklahoma State’s top four runners on Saturday were recruited and signed internationally, while its fifth, senior Ryan Schoppe, joined the Cowboys from a Texas high school in 2020.

Smith was apparently not happy with the comment and countered in a pre-race press conference.

“I have no problem with anybody running their program within the rules and doing things the way they should be done,” Smith said. “If I believe that someone doesn’t like a rule or doesn’t like a situation in the NCAA, don’t b**** about it. Go change it. Get involved. Get involved in the sport. Get involved in leadership and make change the way change is supposed to be made. Otherwise, shut up and coach your team. That’s what I think about this stuff.”

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Elsewhere, New Mexico’s men slotted in second overall in the team race with 82 points, while one of the pre-race favorites, Iowa State, was third with 158 points. Syracuse and Oregon were fourth and fifth, respectively.

Doris Lemngole, Jane Hedengren Battle In Women’s NCAA Cross Country Championships

In the women’s race, a two-way battle emerged between defending NCAA champion Doris Lemngole and BYU star freshman Jane Hedengren.

After leading for the first half of the race, Hedengren succumbed to Lemngole’s press at about the 3,000-meter mark, though she stayed on the runner’s hip almost until the near end.

It wasn’t until the final last meters–about less than 800 meters to go–that the 23-year-old Lemngole finally began to leg past Hedengren.

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The Alabama junior went on to claim her second straight national title over 6,000 meters, this time crossing the line in 18:25.4. She’s the first repeat champion since Villanova’s Sheila Reid in 2010 and 2011.

Hedengren was vying to become the first freshman since Suzie Tuffey in 1985 to win a national cross-country title.

Florida senior Hilda Olemomoi was third in 18:46.4, while BYU’s Riley Chamberlain was fourth in 18:47.0.

The NC State Women Win Their Fifth Cross Country Title Since 2021

Next brought home NC State’s title run.

Between Hannah Gapes and Grace Hartman, who finished fifth and sixth, the two juniors led the Wolfpack to their fifth national title since 2021 under head coach Laurie Henes.

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NC State, which nabbed a three-peat from 2021-2023, scored 114 points and outlasted BYU’s own bid for a repeat.

The Cougars were second with 130 points, securing their fifth first- or second-place finish since 2019 under head coach Diljeet Taylor.

Oregon was third overall with 153 points, while New Mexico was fourth and Florida fifth at the NCAA Cross Country Championships.



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Deyton Albury scores 13 for New Mexico in 80-78 win over Mississippi State in Hall of Fame Classic

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Deyton Albury scores 13 for New Mexico in 80-78 win over Mississippi State in Hall of Fame Classic


KANSAS CITY, Mo. (AP) — Deyton Albury scored 13 points for New Mexico, including the go-ahead layup with 30 seconds left in an 80-78 win over Mississippi State in the Hall of Fame Classic consolation game on Friday night.

Albury’s layup came off a turnover on a bad pass, sending the Lobos (4-2) on a fast break before Uriah Tenette was fouled. Tenette hit both shots from the free-throw line with seven seconds left to end the game.

Thomislav Buljan earned his third double-double of the season, finishing with 19 points and 21 rebounds, breaking a freshman program record for most rebounds in a game. Tenette added 13 points, and Antonio Chol had 12.

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Mississippi State (2-3) was led by Josh Hubbard, who scored 29 points and dished out four assists. He shot 11 of 25 from the field and six of 13 from beyond the arc. Jayden Epps added 21 points.

___ Get poll alerts and updates on the AP Top 25 throughout the season. Sign up here and here (AP News mobile app). AP college basketball: https://apnews.com/hub/ap-top-25-college-basketball-poll and https://apnews.com/hub/college-basketball



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Sam Bregman says he would push for term limits for New Mexico lawmakers

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Sam Bregman says he would push for term limits for New Mexico lawmakers





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