Santa Fe – The state's taxation of social security benefits might soon be a thing of the past. Rep. Cathrynn Brown (R-Carlsbad) and Rep. Gail Armstrong (R-Magdalena) are once again co-sponsoring legislation to repeal the tax New Mexico places on social security income. They pre-filed House Bill 48 and are guardedly optimistic the bill will receive the approval of the legislature and governor this session.
"Sometimes it takes years of hard work to achieve passage of legislation," said Brown. "Representative Armstrong and I have been working tirelessly for six years to repeal this tax. It's unfair that our senior citizens are subjected to two points of taxation: at the front end, when they make contributions into the Social Security system, and then later, when they draw their benefits."
"We have had some bipartisan support for the repeal in years past," said Armstrong, "but not nearly enough. Democratic legislators, by and large, were dead set on keeping the tax in place."
"What's different this year is that the Governor has come on board," said Brown. In her State of the State Address on January 18th, she endorsed the idea of repealing the tax. "We are delighted to have her support, and perhaps her endorsement will translate into the votes needed to finally provide tax relief for seniors."
According to Brown and Armstrong, the state's taxation of SSI is a known disincentive for people to retire in New Mexico.
New Mexico is one of only twelve states that taxes social security benefits. Nebraska recently joined the ranks of states that are removing the tax.