Tax recommendations

Recommendations in a report by PFM Group of Philadelphia to move New Mexico toward a more stable, equitable and diversified tax and revenue structure:

• Reinstitute a personal income tax rate structure with higher marginal rates at higher income levels.

• Eliminate the capital gains personal income tax exemption.

• Reinstitute an estate tax.

• Increase the gas tax rate.

• Establish a structure for taxing recreational marijuana.

• Broaden the gross receipts tax base to include food and, for lower income taxpayers, enact a revenue neutral refundable personal income tax credit.

• Resist the temptation to increase the state gross receipts tax rate.

• Continue to expand excise taxes to align with new forms of goods or services, such as vapor products.

• Identify parameters for a carbon tax or market-based approaches.

• Undertake a regular evaluation process for major state business incentives.

• Amend the New Mexico Constitution to shift greater local funding responsibility to property taxes and away from gross receipts taxes.

• Create incentives for new renewable energy technology and processes.

• Leverage the state’s anchor institutions, such as the two national laboratories and universities, to capture the benefits of agglomeration economics and industry clusters.

• Expand well-paying, middle-skill manufacturing jobs through targeted job training and workforce intermediaries.