This bill amends various taxation laws in New Mexico, focusing on adjustments to tax brackets under the Income Tax Act and the Corporate Income and Franchise Tax Act. It proposes reductions in several tax rates, including the gross receipts tax and gaming tax for manufacturer licensees, while increasing the bingo and raffle tax rate. The bill also removes the authorization for using a state gross receipts tax increment to fund metropolitan redevelopment projects and repeals multiple tax acts and credits, including the estate tax act and various job tax credits. Additionally, it introduces a gross receipts tax exemption for donations to nonprofit organizations and imposes new registration fees for electric and plug-in hybrid vehicles.

Furthermore, the bill establishes new provisions for the dedication of gross receipts tax increments to finance public infrastructure projects and economic development initiatives, allowing local governments to dedicate up to seventy-five percent of property tax or gross receipts tax increments for redevelopment projects. It clarifies definitions related to tax increments and introduces new definitions for sustainable development and workforce housing. The bill also outlines the process for local governments to issue tax increment bonds and mandates the taxation and revenue department to establish specific rates for identifying gross receipts and compensating taxes related to economic development projects. Overall, the amendments aim to streamline tax processes, enhance funding mechanisms for redevelopment, and support economic growth in New Mexico.

Statutes affected:
introduced version: 3-60A-21, 3-60A-23, 3-60A-23.1, 3-65-8, 3-66-8, 5-10-17, 5-15-3, 5-15-15, 5-15-20, 5-15-27, 6-22-2, 6-23-8, 7-1-2, 7-1-6.15, 7-1-6.42, 7-1-6.53, 7-1-6.62, 7-1-6.69, 7-1-6.70, 7-1-8.8, 7-1-13.1, 7-1-26, 7-1-29, 7-1-68, 7-2-7, 7-2-34, 7-2A-5, 7-9-4, 7-9-4.3, 7-9-7, 7-9-13.2, 7-9-18, 7-9-26, 7-9-41.5, 7-9-46, 7-9-46.1, 7-9-58, 7-9-59, 7-9-62, 7-9-77, 7-9-78.1, 7-9-90, 7-9-110.1, 7-9-120, 7-14A-3, 7-16A-21, 7-27-5.26, 7-27-5.27, 7-1-6.13, 52-6-23, 59A-5-11, 59A-5-23, 59A-6-3, 59A-6-6, 59A-6-8, 59A-15-4, 59A-20-33, 59A-22-50, 59A-23C-10, 59A-23F-6.1, 59A-23F-11, 59A-34-33, 59A-39-5, 59A-47-3, 59A-47-8, 59A-54-3, 59A-54-7.1, 60-2F-1, 60-2F-21, 66-3-7, 66-3-118, 66-3-401, 66-3-1006, 66-6-23, 66-6-25, 66-12-5.2, 66-12-6.1, 3-60A-49, 6-21-5.1, 7-2E-1.1, 7-9G-1