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NM Association of Commerce and Industry (ACI)

From NMACI newsletter about passage of bills in special session:

Legislature Sends Budget, Tax Bills to Governor in Special Session
Slightly more than 24 hours after convening in a special session to pass budget and tax bills to chart the course of state government for the next fiscal year, both chambers of the New Mexico Legislature sent bills to the governor's desk and recessed Thursday afternoon.

The Legislature's move to recess the special session, rather than adjourn, compels Gov. Susana Martinez to make decisions on the bills within three days of their reaching her desk, rather than 20 days. 

Wednesday's hearings and floor votes were focused on the budget, particularly restoring more than $760 million in funding for the state's higher-education institutions and the Legislature, which had been line-item-vetoed after the 60-day session.

Rather than raise taxes, provided in the budget package is the authority to go out for about $80 million in severance-tax bonding to shore up operations. Terms of financing could be up to 20 years for repayment. Legislators of both parties on the Senate Finance Committee said the financing option was not ideal, but necessary under the circumstances.  

On Thursday, the chambers agreed on new revenue - approximately $117 million - through taxes on internet sales and on nonprofit hospital care. Gov. Martinez has said she would only approve such taxes if they are part of a more comprehensive tax overhaul.

Also among the tax increases and fees meant to raise revenue - up to $94 million - would come from gasoline, vehicle purchases and weight-distance permits for interstate trucking.

What will have to wait are efforts backed by Gov. Martinez to reform the state's complex gross receipts tax regime. By mid-week, legislators received a new iteration of tax-reform legislation marshaled by Rep. Jason Harper. The now-430-page bill - up from 350 pages when introduced during the 60-day session - was given a cool reception in House Labor and Economic Development on Thursday morning. After two and a half hours of presentation and debate of the bill, along party lines, Labor and Economic Development tabled the bill.

See the passed bills:

HB 1 (SUPPLEMENTAL GENERAL APPROPRIATIONS)

HB 2 (TAX, FUND & DISTRIBUTION CHANGES)

SB 1 (SEVERANCE TAX BOND PROJECT CHANGES)

SB 2 (TAX CHANGES)