HB9: One Percent Income Tax Surtax introduced by Rep. E. Sandoval would adds a one percent personal income tax surtax on married individuals filing separate returns with income over $100,000, on heads of household, surviving spouses and married individuals filing joint returns with income over $200,000 and on single individuals and estates with income over $133,000 for the 2010, 2011 and 2012 tax years.  Note that the tax would be retroactive.  There is no fiscal analysis yet on how much revenue this bill would generate. ACI will oppose this bill which has one committee referral. Only 2% of tax returns are for over $200,000 and only 9% of returns are over $100,000.  Yet those 9% pay 59% of the tax.

HB34: Liquor Surtax for Public Schools introduced by Rep. B Egolf imposes on holders of a retailer’s license a surtax of 2.5 percent of the retail price of alcoholic beverages sold. The bill earmarks proceeds for the Public School Fund. ACI will oppose this bill which has two committee referrals.  While a “sin tax” seems appealing, it hurts the private sector retailers and does not affect out-of-state retailers or those operated by tribal entities.

HB35: Hikes Cigarette, Tobacco Product Taxes also introduced by Rep. B Egolf increases the cigarette tax by a nickel per cigarette, or one dollar per pack and the tobacco products tax from 25 to 40 percent of the wholesale value of non‑cigarette tobacco products, and directs the increased tax revenue to the Public School Fund.  This bill has two referrals and will be opposed by ACI.  While a “sin tax” seems appealing, it hurts the private sector retailers and does not affect out-of-state retailers or those operated by tribal entities.

HB62 & SB90: Mandatory Combined Tax Returns introduced by Rep. R. Begaye and Sen. P. Wirth requires almost all corporations operating in New Mexico that are members of a family of corporations engaging in a unitary business to file a combined return for New Mexico corporate income tax purposes. Manufacturers new to the state that have not filed previously a New Mexico corporate income tax return instead may file on a separate corporate entity basis. This bill repeals the existing option for corporate families to file on federal consolidated basis. ACI will oppose this bill which has two committee referrals in the House, and three in the Senate.