The House Taxation and Revenue Committee on Tuesday passed a measure that would temporarily raise the gross receipts tax (GRT) by one-half percent. The measure is sponsored by Speaker of the House Ben Lujan, D-Santa Fe. In a straight party line vote of 10-6 the bill was amended and passed to the House Business and Industry Committee.
As of now, 5 percent of the GRT is charged by the state, but Santa Fe coffers see much less than that. Many counties have a higher GRT than 5 percent imposed by other governments. The new tax would include everything that is now under GRT, which does not include food.
“This Legislature has slashed spending more than any other time in history,’ said Rep. Benjamin Rodefer, D-Corrales, who voted in favor of the bill in committee. Roderfer said lawmakers are looking at tax increases as a last resort. House Minority Leader Tom Taylor, R-Farmington disagrees, “I sincerely believe state government has an opportunity to prioritize what they do. Look at that first, then talk revenues.”
With the Speaker as a sponsor some feel the measure will likely clear the House, but how it will fare in the Senate may be an entirely different question.
Those who voted in favor of the GRT hike on the Taxation and Revenue Committee are: Rep. Ben Lujan, Rep.Edward Sandoval, Rep. Jim Trujillo, Rep. Andrew Barreras, Rep. Ernest Chavez, Rep. Nate Cote, Rep. Roberto Gonzales, Rep. Rodolpho Martinez, Rep. Sandra Jeff and Rep. Ben Rodefer.
Those who voted against the measure are: Rep. Janice Arnold-Jones, Rep. Anna Crook, Rep. Keith Gardner, Rep. William Gray, Rep. James Strickler and Rep. Tom Taylor.