Within the first week of the 2019 Legislative session the left-wing House of Representatives has proposed HB 6, legislation that would:
Raise New Mexico’s top income tax rate from 4.9% to 6.5%, a rate increase of 32.6%;
Increase gas taxes by 10 cents per gallon from 17 to 27 cents (a 59 percent increase);
Increase vehicle excise taxes from 3 percent to 4.625 percent.
The State gross receipts tax rate would be reduced by 0.5 percentage points to that aforementioned rate of 4.625 percent.
All of these tax hikes are bad and will hit average New Mexicans in their pockets, but with the average vehicle purchase price New Mexicans will be paying an additional $585 on average for every new vehicle purchase.
While there has not been an analysis from the Legislative staff, it is clear that HB 6 amounts to a significant tax hike on most New Mexicans. We want to see tax reform. We want the job-killing gross receipts tax rate reduced, but not at the expense of higher taxes overall or more progressive income taxes.
UPDATE: According to the Albuquerque Journal, HB 6, if adopted, would increase taxes by $333 million in its first year.