[LWVNM Action] HB291 - Revenue and Tax relief bill from our friends at NM Voices

[Richard Mason]

Subject: Information on the House tax package (HB 291)

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
<https://www.nmlegis.gov/Legislation/Legislation?Chamber=H&LegType=B&LegNo=291&year=21>).
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.

*What is in the House package so far:*
·        Section 1: Increase in PIT rates for high earners
<https://www.nmvoices.org/wp-content/uploads/2021/01/PIT-factsheet-2021-web.pdf>
(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
<https://www.nmvoices.org/wp-content/uploads/2020/11/LICTR-web.pdf> and
indexing (this piece is what we pushed for/expected)
·        Section 3: WFTC increase and ending of exclusions
<https://www.nmvoices.org/wp-content/uploads/2020/11/WFTC-Nov-2020-update-web.pdf>
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
<https://www.nmvoices.org/wp-content/uploads/2020/01/CapitalGains-2021-web.pdf>
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
·        *Talking point for HB 291**: HB 291 raises revenue from high
earners, diversifies revenue, and improves equity and fairness in the tax
code, as well as provides relief for those who need it most right now.*

*Pieces we would like or expect to potentially end up in the tax packages:*
·        Peter Wirth has a bill (SB 211) to raise corporate taxes
<https://www.nmvoices.org/wp-content/uploads/2021/02/CIT-web.pdf> 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
<https://www.nmvoices.org/wp-content/uploads/2021/02/Tobacco-Tax-Factsheet-web.pdf>,
HB 167 and SB 197, end up in the tax packages, though it is not at all
guaranteed.
Amber

*Amber Wallin, MPA **(she, her, and **why this matters*
<https://www.hrc.org/blog/this-international-pronouns-day-celebrate-why-pronouns-matter>
*)*
Deputy Director
New Mexico Voices for Children
O: (505) 244-9505 |C: (210) 627-5717
awallin at nmvoices.org |*@NMAmber*
www.nmvoices.org |www.datacenter.kidscount.org
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