I am writing today to announce the closure of the New Mexico Independent. After three and a half years of operation in New Mexico, the board of the American Independent News Network, has decided to shift publication of its news…
While environmental activists played their part yesterday during demonstrations at the capitol building, going so far as to dress up as solar panels and to sing the tune of “You Are My Sunshine,” their counterparts, the anti-cap-and-trade contingency who has…
Roughly one quarter of University of New Mexico students are unimpressed with the state’s flagship public school, according to a survey that questioned college students about their higher education experiences.
Legislative leaders have struck a budget deal, and just in time. Details are few, but Gov. Bill Richardson saw it Friday and pronounced it good. Here are the general outlines of the deal. The recently struck deal involves raising $233 million in revenue. That revenue would come from increasing the state’s gross receipts, cigarette and compensating taxes. Certain foods also would be taxed for the first time in years, although it’s unclear what food items would fall under the state’s gross receipts tax. The proposed budget agreement also relies on spending decreases. State agencies are expected to shave spending. Public education, meanwhile, would be reduced by about 1 percent.
A bill that would have added gross receipts tax to a wide variety of food was tabled by a unanimous vote of the House Business and Industry Committee Wednesday afternoon. There were no questions for the sponsor and no…
So far this legislative session, we’ve seen several proposals to reinstate the gross receipts tax on food. The one that seems to have gained traction would apply the GRT to non-staple foods, using the WIC guidelines. That means that while soda and ketchup would be taxable, so would white flour tortillas, pasta and rice. But taxing food could bring in millions to fill a gaping budget hole. Should the state tax food?
Gov. Bill Richardson picked sides Monday, saying he preferred the House state budget to the one passed by the Senate Saturday.
“New Mexico taxpayers expect serious solutions to the budget impasse, rather than taxing tortillas as the Senate proposes,” Richardson…
New Mexico would tax food for the first time in years, add $1 to the state cigarette tax and net taxes from out-of-state owners of business partnerships on income earned here.
Meanwhile, state agencies would get fewer dollars and several hundred jobs would disappear from state government. That mixture of spending cuts and tax hikes was part of a $5.276 billion state budget proposal that the Senate passed 25 to 17 early Sunday morning to help close a projected shortfall of several hundred million dollars next year.
Stock up on white flour tortillas and red chile pods now. The New Mexico Senate voted late Saturday night to extend the state’s gross receipts tax on a wide variety of foods after a wide-ranging debate that included attempts to raise taxes from the state’s wealthiest residents and out-of-state corporations.
Brought forward by Sen. Bernadette Sanchez, D-Albuquerque, the food tax passed on a vote of 23 to 19. The measure exempts foods offered through the state’s nutrition program for women, infants and children, known as the WIC program, plus fresh or frozen meats, poultry and chicken. But it also taxes many foods considered staples, like white flour tortillas, white bread and red chile pods.
“It helps prevent additional cuts to Medicaid, to courts, to seniors…and hopefully it’ll eventually have a health benefit by reducing obesity and diabetes,” Sanchez said.
But Sen. Cisco McSorley said consumers wouldn’t know which products would be taxed and which wouldn’t be, and, he said, a wide variety of foods would not be exempt.
“For the last five years, this state has enjoyed a tax free Thanksgiving,” McSorley said, “and that’s something to be thankful for. But if you look at a butterball turkey, spices and preservatives are built into it, so would it be taxed?”
Sanchez replied that the intent was to exempt meats, poultry and fish with limited amounts of added ingredients, and that the Tax and Revenue Department was working out the details.
Two amendments specifically concerning the food tax bill were offered. Sen. George Munoz, D-Gallup, proposed exempting red chile pods and powder. Sen. Eric Griego, D-Albuquerque, meanwhile, suggested taxing all food, while offering a food rebate for low-income families. His proposal would reduce the complexity of the tax, he said, while making it more progressive by offering an outright tax rebate to the poor. Both amendments failed.
McSorley explained in voting no on Griego’s amendment that he had promised his constituents he would never vote for a food tax. Another progressive senator defended Sanchez’s legislation.
“I came into this session thinking I’d never vote for a food tax, but I realized this could be the biggest boon to health in NM,” said Sen. Dede Feldman, D-Albuquerque. “This is a tax on salt, sugar, white flour and processed foods. …[when] over 60 percent of New Mexicans are overweight or obese. Mothers will be cooking more and cooking from scratch. That is a good thing.”
The food tax legislation received vigorous opposition in the lead up to the final floor debate by the Catholic Church in a particular. Billed a “tortilla tax,” the legislation was blasted for taxing white tortillas, which are a staple food in New Mexico.
“WIC is designed to provide supplemental funding for food with an extensive education to accompany it,” Allen Sanchez, a lobbyist for the New Mexico Conference of Catholic Bishops, said immediately after the legislation was adopted.
“Without education the working poor will not be able to navigate the grocery story knowing what is taxed and is not taxed. This bill deliberately targets the poor and the Catholic bishops of New Mexico find this bill to be in direct contradiction to the Gospel values.”
Other tax measures
The food tax passed despite multiple amendments offered by several lawmakers who hoped to raise revenues in a variety of other ways.
“This is about asking the richest people to step up to the plate,” Sen. Eric Griego said of an unsuccessful amendment that would have raised the top income tax rate in the state.
Another amendment offered by Griego reduced the capital gains exemption from 50 to 25 percent.
“There are 15 to 20 proposals that have been circulated to help us raise the revenue we need,” Griego said to explain why he offered the two amendments on the food tax bill. “This is the only vehicle we have to have a balanced conversation, because most haven’t seen the light of day.”
“Otherwise,” he said, “we’re just balancing the budget on the backs of teachers, …instead of asking the rich and wealthy to pay their fair share.”
Sen. Peter Wirth, D-Santa Fe, proposed an amendment that would have mandated that multi-state corporations use a mechanism called “combined reporting,” which would ensure they pay corporate income tax to New Mexico. Wirth has proposed the bill for five years in a row, but in years past was routinely told that while the idea was a good one, the state didn’t need the money. Now it does, he said, which was why he thought it was important to ensure a floor debate.
“I was told for years that it’s a good deal, but we don’t need the money,” Wirth said. “Now, we need the money. It’s about fairness. It doesn’t apply a new tax rate, it simply makes these multi-state corporations pay their fair share.”
Ultimately, neither Wirth’s or Griego’s two amendments were adopted.
Votes for and against the food tax, SB 10:
For: Campos, Cisneros, Eichenberg, Feldman, Fischmann, Phil Griego, Ingle, Jennings, Kernan, Leavell, Martinez, Morales, Munoz, Ortiz y Pino, Papen, Pinto, B. Sanchez, M. Sanchez, Sapien, Smith, Ulibarri, Beffert, Harden.
Against: Adair, Asbill, Boitano, Cravens, Duran, Garcia, Eric Griego, Keller, Lopez, Lovejoy, McSorley, Payne, Rue, Ryan, Sharer, Wirth, Nava, Neville, Rodriguez
The Roundhouse is still deciding what to do with Senate bill 10, a bill that would make a lot of food items taxable in New Mexico. But those grocers who sell the foods say the tax won’t be the…
They say it’s healthier, easy to implement and most of all, helps the budget. Senate bill 10 makes more foods eligible to be taxed in New Mexico and it crossed its first hurdle on Friday.
At one of the most unique rallies at the Roundhouse during the session, 12,000 white tortillas were handed out by St. Joseph Community Health and other groups opposing a bill that would reimpose the gross receipts tax on certain…
Public school teachers and state workers would pay more toward their retirement while several, but not all, state agencies would get fewer dollars next year under a state budget plan approved by a powerful Senate committee on Thursday.
Also roughly 250 more state jobs across state government would disappear than in a House-approved state budget plan that served as the starting point for the Senate proposal. Many of those targeted state government positions are already vacant, legislative officials said.
“This is a tax on the poorest people of New Mexico,” Allen Sanchez, a lobbyist for the New Mexico Conference of Catholic Bishops, said Thursday. He’s referring to a bill that would reinstate the gross receipts tax on certain…
When it came from the House, the budget called for $300 million dollars more than the state had. To make the numbers add up the House passed controversial tax measures. But the Senate Finance Committee dropped a surtax on high earners and a temporary increase in the gross receipts tax in favor of reinstating the tax on non-staple foods, cutting education and other measures.
A modified food tax bill that would add gross receipts tax to non-staple food is poised to become part of the budget package, it’s sponsor, Sen. Bernadette Sanchez, D-Bernalillo, said in a statement issued late Monday. While the New Mexico Food and Agriculture Policy Council took a position against the imposition of a food tax earlier in the year and hasn’t discussed this bill, the coordinator of the policy table, Pam Roy, told The Independent she thought this bill was “palatable.”
Soft drinks, medical marijuana, even that book you want to buy online could get taxed under various proposals filed this week in the early days of the 2010 legislative session. Meanwhile, buying a pack of cigarettes may get a lot more costly, too. Lawmakers have dropped roughly 280 bills in the opening days of the session–and quite a few of those proposals are tax bills.
On Wednesday night in Santa Fe, writers from The Independent mingled with dozens of guests gathered at Rio Chama for the first of four Independent Forum events. The Independent’s partner KNME was on hand to film a panel discussion…
Gov. Bill Richardson said Tuesday that he was opposed to re-instituting the food tax but would be open to taxing foods such as soda and candy. Shortly afterward, GOP candidate for governor Susana Martinez said in a press release…
Gov. Bill Richardson has said he doesn’t want to tax food to help solve the state’s budgetary troubles. But on Tuesday he said he could live with taxing items such as candy and soft drinks. Already, state lawmakers have pre-filed bills that tackle the food exemption in various ways.
After campaigning against the measure on Twitter and Facebook, a Santa Fe think tank claims there are enough votes to stop the reimposition of the food tax from passing out of the New Mexico state Legislature. Think New Mexico…
Welcome to our new feature, The Independent Forum! Every week we’ll ask a different question and solicit responses from a diverse group of New Mexico thinkers. New responses are added all the time. From Wednesday: Bill Jordan of Voices for Children and Steven Robert Allen of Common Cause.
The task force created by Governor Bill Richardson to study options for raising revenue has now convened four times. There are some interesting reports added to the group’s Web site, covering various options for raising revenue, giving definitions, histories,…
