New mexico gross receipts tax7/22/2023 ![]() Senate Bill 417, which was enacted in May and takes effect July 1, allows Indiana counties to adopt local income taxes to pay for county staff expenses related to the state’s judicial system. Rather, this report focuses on major structural changes, including rate changes, the implementation of new taxes, and notable changes in the tax bases of major statewide taxes. This is not an exhaustive list, as it does not capture changes to certain credits, exemptions, definitions, administrative procedures, calculations, or provisions that are relatively minor or only affect a small share of taxpayers. We have provided an overview of these tax policy changes below. Further, a few states had notable tax policy changes take effect after January 1, 2023, but before July 1, 2023. ![]() Separately, across 11 states, at least 22 notable tax policy changes have been enacted or phased in this year and are retroactively effective as of January 1, 2023, including income tax reductions in Arkansas, Michigan, North Dakota, Utah, and West Virginia. On July 1, 2023, at least 32 notable tax policy changes will take effect across 18 states, including sales tax rate reductions in New Mexico and South Dakota, a repeal of the corporate franchise (capital stock) tax in Oklahoma, the implementation of a payroll tax in Washington, and the implementation of taxes on newly legalized sales of cannabis products in Maryland and Minnesota. However, many sales and excise tax changes take effect on July 1, which is the beginning of the fiscal year for all states except Alabama, Michigan, New York, and Texas. The majority of state individual and corporate income tax policy changes take effect on January 1, the beginning of the calendar year, to maintain consistency throughout the tax year. During this season, many states are beginning to implement policy changes that were enacted during this year’s legislative session (or that are being phased in over time). The governor also detailed "record exports" a 4% overall growth in the last two years during her address at the economic event.The June solstice has passed, marking the official beginning of summer and the end of most state legislative sessions. The statewide gross receipts tax rate last changed in July 2010 when the rate increased from 5% to 5.125%. That new revenue source paves the way to lower the gross receipts tax rate for the prosperity of all New Mexicans.”Īccording to the state’s Taxation and Revenue Department, the statewide rate was last decreased in 1981. ![]() ![]() “New Mexico recently expanded its gross receipts tax to include internet sales. “Reducing the gross receipts tax rate will provide valuable tax relief to New Mexico families and businesses while adding a competitive advantage for New Mexico businesses,” Taxation and Revenue Cabinet Secretary Stephanie Schardin Clarke said. The cut would reduce the gross receipts tax rate from 5.125% to 4.875%, which the governor claims would be a $145 million annual tax cut, totaling to be around $1.5 billion over 10 years. The governor announced the plan during an address at the Albuquerque Economic Forum where she outlined a 0.25% cut in the gross receipts tax rate. Michelle Lujan Grisham announced Wednesday she plans to cut gross receipts taxes statewide for the first time in 40 years.
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