Republican proposed tax relief coming for New Mexico Seniors, Veterans, and Families

SANTA FE — In the final hours of the 2022 session, Senate Republican backed measures to provide meaningful tax relief for New Mexicans were included in the final tax bill passed by the Senate. House Bill 163 includes a repeal of the social security tax for most New Mexicans, a phased in repeal of state income tax for military retirees, and a $250 tax rebate for almost every New Mexico taxpayer. Other tax breaks in the legislation include a child tax credit and a small GRT tax decrease.

"This tax cut for our seniors will have a generational impact on families who rely on a their social security check," said Senator David Gallegos (District 41-Eddy and Lea) who sponsored legislation to repeal the social security tax. "This is a win for our seniors who have served our communities for decades. The least we can do is end the double taxation of their social security benefits."

"Removing the income tax for our military retirees is the only way New Mexico can get in the fight to keep them in our state," added Senator Bill Burt (District 31-Otero, Lincoln, and Chaves), a longtime sponsor of this effort. "At this point, more than 9 in 10 of our highly educated veterans leave our state upon retirement because we are one of the few states that do not already offer this tax break. This is prudent policy to bolster our workforce, spur small business creation, and enrich our communities with these heroes and their families."

"A rebate is the least we could do for New Mexico families given the glut of government growth we have seen this year," added Senator William Sharer (District 1-San Juan). "Despite our state coffers being flushed with federal stimulus and oil and gas cash, many New Mexico families are seeing their budgets ratchet down due to rapid inflation. I fundamentally believe the more taxpayer money we can return to those who earned it, the better our state will be."

HB 163 will now return to the House for concurrence.