HB 202 An Important Revenue Generation Bill

cropped-roundhouse-photo2.jpgNM House Democrats have remained united in an effort to increase revenues by closing loopholes that have been passed by Republicans and Democrats alike over the past decade. House Bill 202 would raise $265 million for fiscal year 2018, with that increasing to $277 million by 2021. From the New Mexican:  “The bill would:

• Extend the gross receipts tax to all hospitals and health-care providers, adding $38 million next year to the general fund and $20 million for city and county governments.

• Increase the excise tax on a vehicle purchase from 3 percent to 4 percent of the price, minus any trade-in value, raising $49 million for 2018.

• Boost the cost for heavy truck permits, paid annually by trucking companies, to raise $68 million for the general fund.

• Allow the state to collect gross receipts taxes on all internet sales to raise $8 million to $38 million for the general fund and $5.8 million to $20 million for local governments. Amounts would increase over time.

• Extend the payment of gross receipts taxes to purchases by nonprofit organizations to raise $15 million.

• Temporarily suspend contributions to the Legislative Retirement Fund, freeing $900,000 a year for spending on services.”