As the normal course of business for the legislature, much is happening in the final days ending Saturday, 3/16/19, at noon. 

You’ll get the best update at the BASH on April 4, 2019 with Sen Stuart Ingle.  Don’t miss this great event – register here.

 A few of the latest highlights that could change at any moment:

 HB 6 Tax Changes:

            – Removed Personal Income Tax (PIT) increase. Good news for most businesses and higher income earners, like doctors.

            – Increase vehicle purchase tax to 3.5 percent (formerly in the bill at 4.2 percent)

            – Charge GRT on online sales (as allowed by the 2018 U.S. Supreme Court ruling)

            – Charge GRT to nonprofit hospitals (as is current practice with for profit hospitals)

            – Increased working families tax credit

            – Increased cigarette tax

Commentary on proposed legislation that would take more money out of New Mexico’s Land Grant Permanent Fund, by NMBC follower David C. Williams, Ph. D.

In considering the wisdom of the proposed increased withdrawal rates from the Permanent Fund, it would be wise to remember that increasing the withdrawal rate from 5% to 6% will reduce the rate of growth (or increase the rate of decline) of the Fund, with the effect on the magnitude of the Fund being cumulative as time passes.  The time will therefore come (which I call the “cross-over time”) when a withdrawal of 6% will yield no more than would have a withdrawal of 5% if the rate had been left at that value; after the cross-over time, the fund with a continuing 6% withdrawal would still be yielding less than it would have with a 5% withdrawal if the rate had been left at that value.  If we neglect for the moment the effect of continuing inflows to the Fund from various royalties, a little math shows that the cross-over time is about 18 years (18.23 years, in my simplified model).  After that, the 6% withdrawal rate would be yielding less than would have been yielded by leaving the rate at 5%.

Commentary By Carla J. Sonntag

President and Founder, New Mexico Business Coalition

It’s admirable to see how hard our legislators are working. Whether I agree with them or not, they are focused on moving their agendas.

The question is whether or not those agendas are best for our state.