Hi there! You all likely saw the eVoices we sent out to the full NM Fairness Project (also attached), but we wanted to share some more details with some partners about the House tax omnibus that dropped Thursday (HB 291 here). It is likely that this is a starting point of sorts—that it could be amended before passing in HTRC, and then that it will be further negotiated (maybe even in a conference committee) depending on what Senate Tax passes in their package or how they handle this. I’m linking a bunch of our factsheets in the bulleted points in case they are helpful for talking points and information. We will also continue to look out for the FIRs to see what might need tweaks or changes.

 

·        Section 1: Increase in PIT rates for high earners (this is a really important part of the bill because it raises part of the $ to pay for the tax credits; it is partly where we wanted it to be, but the new rate for the highest top tax bracket starts at a really high income level; starting it lower will improve fairness and increase the revenue raised, so we’d like to see that top bracket start lower)

·        Section 2: LICTR increase and indexing (this piece is what we pushed for/expected)

·        Section 3: WFTC increase and ending of exclusions for ITIN filers and young workers (this piece is what we pushed for/expected, but there’s a chance this could even improve since the WFTC is increased even higher in Jacob Candelaria’s SB 339)

·        Section 4: Capital gains partial repeal (another important revenue raiser; it is not a full repeal or even as much of a repeal as we have had in bills in the past few years, seems like they are trying to appease some critics who complain about how it could hurt businesses; curious to see how those qualifications will change the amount of revenue raised)

·        Section 5: A piece that has to do with how very large business apportion their income; giving really big businesses more flexibility in determining how they file (we are waiting to see a fiscal impact on this piece)

·        Section 6: A piece to help address property tax lightning issues

 

·        Peter Wirth has a bill (SB 211) to raise corporate taxes and lower the GRT. There is a chance it could end up in what Senate Tax puts together. We strongly support the CIT piece.

·        We’d also like to see the bills we’re working on for increasing tobacco product taxes, HB 167 and SB 197, end up in the tax packages, though it is not at all guaranteed.