The New Mexico legislature recently passed a tax rebate bill to provide economic relief for state residents, KOB 4 reported.
House Bill 2 will provide rebates of $500 for individuals and $1,000 for couples and heads of household.
Approximately 490,000 residents are eligible for $500 rebates, the Legislative Finance Committee said, with another 432,000 who file joint returns getting $1,000 total, according to KOB 4. Approximately 135,000 New Mexicans who do not file taxes can apply for rebates as well.
The relief will come in two payments, one in June and the other in August.
The state is estimating that it will pay approximately $700 million in total.
The money will come from the budget surplus that New Mexico receives from oil fields, KOB 4 reported. The oil and gas industry is doing well currently due to rising gas prices, and New Mexico is receiving substantial money from taxes on fuel. Normally, the profits go directly to the general fund; however, it is being redirected to individuals.
“I think oil and gas prices have been strong,” state Rep. Patricia Lundstrom (D-Gallup) said. "We're tracking about $300 million in FY22 and a similar amount in ’23.”
The state is projecting a surplus of $500 million to $700 million dollars between this fiscal year and the next.
“Our state's productive budget surplus allows us to deliver much-needed financial relief to our citizens as they face the ripple effects of these costs,” state Rep. Christine Chandler (D-Los Alamos) said.