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Category: Front Page News Front Page News
Published: 06 February 2015 06 February 2015

By Mary Alice Murphy

At the monthly Silver City-Grant County Chamber of Commerce networking luncheon, Cynthia Bettison, town councilor and Western New Mexico University Museum director, as well as a Prospector for Grant County, gave a report on the Prospectors' recent Grant County Day on Jan. 28, at the legislative session.

"We met with the leadership of the House and the Senate, as well as with the governor's folks, the new attorney general, new treasurer and new auditor," Bettison reported. "We also met with the Secretary of Higher Education, as well as representatives from Tourism, Secretary Jon Barela of the Economic Development Department and the Secretary of Health and Human Services, and representatives from Children, Youth and Families Department.

"Our brochure included the names of all those who presented at our annual Prospectors' Forum in front of our local legislators," she continued. "Whatever we put into the brochure is what our legislators use. We also create notebooks of information from the forum for our legislators. We gave a notebook to the governor's office, too."

She said Grant County had a strong showing with more than 50 people representing groups in the county. "Our reception at The Inn of Loretto was well attended by at least 250-300 people. The Silver City Daily Press published its edition that day in Santa Fe."

The featured speaker for the luncheon was Richard Anklam, president and executive director of the New Mexico Tax Research Institute, which has been in existence for 10 years. "We are non-profit, non-partisan," Anklam said.

He said the group studies the fiscal impacts of oil-and-gas production in New Mexico, New Mexico tax competitiveness, and trends in tax policy.

Anklam said the most recent estimate of how much "extra money" would be available at the legislative session-$80 million-was about half of what had previously been predicted after the price of oil and gas started falling and a quarter of the estimate before the price fall.

"They can still spread some pork around," Anklam said. He had handouts that showed the bills with tax or revenue implications that had been filed to date. Legislators can continue to file bills until Feb. 19. Listed on the handout were 64 bills. "A lot more bills get filed than get passed," he noted.

Anklam said taking more time with bills usually comes up with better results. "Doing them fast often brings problems. Hold Harmless hurt everybody, and it was done fast."

The bill allowed counties and municipalities to put into effect a 3/8 of 1 percent gross receipts tax increase to offset the loss of hold harmless. "Counties were quick to impose it," Anklam said. "The Municipal League cautioned cities on putting the tax into effect. As a result, counties have money, and cities still don't have enough revenue. The problem is you're in competition. I look for a reset and restructure of the tax system in the not too distant future. The gross receipts tax and sales tax are regressive. The effective tax rate in New Mexico is high, which renders New Mexico non-competitive for businesses."

"We have to have taxes," Anklam said. "They are how we fund things. They matter more than they used to" because of cuts in federal spending.

He listed the principles of good tax policy: