While lawmakers consider bringing the Legislature into the 21st century, they might also want to consider modernizing a Byzantine tax code that’s been shackling small businesses and deterring economic development for decades in New Mexico. “Tax pyramiding,” for example, is an archaic taxing tactic when the state levies taxes multiple times on the same goods or services. Once is often not good enough in New Mexico. Larger businesses, like manufacturers and corporate headquarters, have plenty of in-house accountants and lawyers. So they don’t feel the effect of pyramiding. Small businesses, on the other hand, typically have to contract for professional services, and then pay gross receipt taxes on those services. House Bill 367, supported by Democratic Gov. Michelle Lujan Grisham and cosponsored by Jason Harper, R-Rio Rancho, Benny Shendo Jr., D-Jemez Pueblo, Joshua Hernandez, R-Rio Rancho, and John Block, R-Alamogordo, would create a gross receipts tax deduction for certain business-to-business services, a provision known as “anti-pyramiding.” The bill would also cut GRT base rates by one-quarter of 1%. Combined with a 0.25 percentage point drop over a two-year period approved by lawmakers last year, the state’s base GRT tax rate would drop to 4.625% in July. HB 367 is […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
