Gov. Michelle Lujan Grisham (D-N.M.) recently signed legislation that will help the state’s residents save money.
House Bill 163 (HB 163) exempts Social Security income from taxation and cuts the state’s gross receipts tax rate for the first time in 40 years, according to a press release from the governor's office.
“New Mexicans, like all Americans, are feeling the pressure of rising costs,” Lujan Grisham said in the release. “Coupled with the state’s robust current financial situation, there is no reason we shouldn’t be taking every action to cut costs for New Mexican seniors, families, and businesses — and today, we are doing just that.”
HB 163 was sponsored by state Representatives Christine Chandler (D-Los Alamos), Javier Martínez (D-Bernalillo), and Micaela Lara Cadena (D-Dona Ana), along with Senators Peter Wirth (D-Santa Fe) and Michael Padilla (D-Bernalillo).
The bill's exemption of taxes on Social Security will save New Mexico senior citizens over $84 million next year, the release said. The bill also created a cap for eligibility for exemption at $100,000 for single filers and $150,000 for married couples filing jointly.
HB 163 will trim the state’s gross receipts tax rate by an eighth of a percent starting July 1. This will rise to a quarter-percent reduction on July 1, 2023. That will save New Mexico businesses and consumers nearly $200 million when fully implemented, according to the release. The bill will presumably provide approximately $400 million of recurring tax relief, which will benefit all New Mexicans.
