By Associated Press - Friday, October 18, 2019

SANTA FE, N.M. (AP) - Gov. Michelle Lujan Grisham is seeking advice on how to make the state’s tax system more fair and efficient.

The first-year Democratic governor on Friday announced the appointment of a new committee to evaluate New Mexico’s tax code.

A second appointed committee will examine tax enforcement and auditing by the state.

New Mexico’s corporate income tax rate was lowered to 5.9% under Lujan Grisham’s Republican predecessor. Reforms this year increased tax rates on vehicle sales, nonprofit hospitals and personal income for top earners.

Lujan Grisham says this year’s changes chipped away at some inequities and that more reforms may be needed.

State government spending relies heavily on gross receipts taxes on sales and business transactions. Critics of the system says it is rife with exemptions and loopholes.

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