SANTA FE, N.M. (AP) - A proposal to overhaul New Mexico’s tax on sales and business services will not come to a vote during a special legislative session, Democratic House Speaker Brian Egolf announced Tuesday.
Republican New Mexico Gov. Susana Martinez has been a vocal advocate for the tax reforms that would do away with a variety of tax breaks to bring in sales tax revenue from more sources - at a lower overall tax rate.
Egolf said too much time has time passed without a final version of the legislation and a fiscal analysis for lawmakers to carefully review. The Legislature convenes at noon Wednesday to address a state budget deficit for the coming fiscal year and try and restore vetoed funding to state universities and the legislative branch.
“I support the idea of changes to our tax code,” Egolf said. “But in the interest of transparency and a thorough, proper analysis, we can’t do it in a rushed setting like this.”
Republican Rep. Jason Harper, the main architect of the tax reform bill, said he was surprised by the announcement as he worked on last-minute changes to the complex legislation. His bill was expected to include contentious provisions to increase tax collections from nonprofit health care providers and possibly reinstate taxes on groceries.
Harper said he asked Egolf on Tuesday morning to wait and review the proposal with an open mind before making a final judgment.
Martinez spokesman Michael Lonergan said in an email that the governor would continue to speak with lawmakers about comprehensive tax reforms that can lower rates. He questioned whether “Democratic lawmakers have the courage” to take on the issue.
Martinez in April rejected a list of tax and fee increases that the Democratic-led Legislature said were needed to bolster funding for public schools, courts and critical state services after repeated rounds of cuts to state agencies. She has stressed the need for further belt-tightening by state government.
The governor added urgency to budget negotiations by vetoing all funding to the Legislature and state higher education institutions for the fiscal year starting July 1.
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