Jay Block, a New Mexico State Senator, announced the introduction of Senate Bill 398, which proposes a $500 annual income tax rebate per filer and dependent. The bill is designed to return surplus state funds directly to taxpayers. Block made this statement in a press release on February 14.
"Recent trends have seen the legislature spend every dollar that comes in," said Block. "Failing to provide the results citizens have been hoping for."
Senate Bill 398, known as the "Citizen Income Tax Rebate," outlines eligibility criteria for recipients. According to the bill, recipients must be U.S. citizens and New Mexico residents for at least six months of the taxable year, with exceptions for individuals incarcerated for over six months. The rebate will apply to taxable years up until 2033, with a claim deadline of May 31 of the following year. If the rebate exceeds a taxpayer's liability, the surplus will be refunded. The bill has been referred to the Senate Tax, Business, and Transportation Committee and the Senate Finance Committee for further consideration.
Enchantment State News reports that by December 2024, New Mexico’s inflation rate had risen by 21.8% since January 2021, surpassing the national average increase of 20.7%. This surge in prices has significantly affected essential goods and services, adding financial strain on residents despite the state's lower-than-average cost of living. The rising inflation has spurred discussions on tax relief measures such as SB 398 as lawmakers explore ways to ease the economic burden on New Mexico families.
In 2022, several U.S. states implemented tax reforms to provide financial relief to their residents. Georgia issued tax rebates of up to $500 per household; Hawaii offered $300 rebates per exemption for filers under certain income thresholds; and Idaho provided one-time rebates of 12% of a filer’s 2020 tax liability or $75 per taxpayer and dependent, whichever was greater. These initiatives were designed to return surplus funds to taxpayers and stimulate economic activity according to the Tax Foundation.
According to his website, Block is a retired U.S. Air Force Lt. Colonel who served as a nuclear weapons officer before entering politics. He became the first Republican elected to the Sandoval County Commission where he focused on economic development and public safety.
