Watch out, cities. A bill introduced by Sen. President Pro Tem Tim Jennings, D-Roswell, this week could dramatically affect cities’ bottom line if it passes, Steve Terrell of the Santa Fe New Mexican informs us today.
The legislation (SB247) “would phase out provisions of a law that kept city and county governments from taking major hits in their revenue when the state exempted food and medicine from gross-receipts taxes in 2004.”
This source of revenue for cities is estimated at more than $100 million a year, Terrell tells us.
It’s imprudent to predict the chances of any bill introduced by a legislative leader. But it’s fair to say the challenges besetting this bill are daunting. First, Gov. Bill Richardson already has said repealing the state food tax is off the table during the 30-day session. Secondly, many state lawmakers will get an earful from the local officials in their districts.