Legislature 2020 Special Session

N.M. governor signs tax relief bill into law

By The New Mexican
Posted 7/4/20

Gov. Michelle Lujan Grisham on Monday (June 29) signed legislation that provides tax relief to local governments, residents and businesses affected by the COVID-19 pandemic.

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Legislature 2020 Special Session

N.M. governor signs tax relief bill into law

Posted

Gov. Michelle Lujan Grisham on Monday (June 29) signed legislation that provides tax relief to local governments, residents and businesses affected by the COVID-19 pandemic.

House Bill 6, co-sponsored by Senate Majority Leader Peter Wirth, D-Santa Fe, and Rep. Christine Chandler, D-Los Alamos, passed during the special legislative session earlier this month and is a multifaceted effort to provide help as issues from the economic crisis befall New Mexicans.

The bill temporarily waives interest and penalties on late tax payments, doubles state gross receipts tax distributions from online sales to $48 million from $24 million and exempts federal Coronavirus Aid, Relief and Economic Security Act payments to some state health care providers so more funding can be used for direct services.

In a statement, Lujan Grisham said the bill will help people throughout the state who need relief.

"It will help local governments and it will help small businesses, all of whom have been suffering the dreadful effects of this pandemic," she said.

The bill also includes a technical change so the state's treatment of corporate net operating losses will continue to follow the federal treatment prior to the CARES Act, according to a news release issued by the state Department of Taxation and Revenue.

"The relief offered through this bill will give taxpayers an additional year to recover financially without having to worry about tax penalties and interest," Wirth said in a statement. "And given the massive fiscal hits to our local governments, distributing an additional $24 million to our cities and counties from internet sales is critical relief to help avoid massive cuts and layoffs."

The governor late last week signed legislation on voting, civil rights and financial solvency. She has yet to sign the state's budget bill, which was the centerpiece of the special session.

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