44th legislature - STATE OF NEW MEXICO - second session, 2000

REQUESTING THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE TO CONDUCT A COMPREHENSIVE REVIEW OF THE TAX POLICY OF NEW MEXICO.

WHEREAS, the tax policy of the state affects the health and welfare of its residents, the economy and local government operations; and

WHEREAS, New Mexico's employment growth was less than one percent in 1998-1999, ranking New Mexico twenty-eighth in the nation for employment growth; and

WHEREAS, New Mexico ranks forty-ninth in the nation in per capita personal income; and

WHEREAS, New Mexico ranked second in disparity in income between the richest fifth and middle fifth of the population and third in disparity in income between the richest fifth and poorest fifth of the population; and

WHEREAS, New Mexico has enacted two hundred six million dollars ($206,000,000) worth of individual and business tax relief measures in the last five years; and

WHEREAS, changes in the economy and market affect the tax base of New Mexico;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the revenue stabilization and tax policy committee be requested to conduct a comprehensive review of New Mexico tax policy and structure that builds on previous studies and analysis; and

BE IT FURTHER RESOLVED that the review include an assessment of the impact of the state tax policy and structure, including the impact of income, property and gross receipts tax structures on business, economic development and households by income; the effectiveness and impact of individual and business tax deductions, credits and exemptions for business, economic development and individuals by income ranges; and the impact of state tax policy and structure on the stability and operations of government; and

BE IT FURTHER RESOLVED that consideration be given to the changes required to provide an equitable state tax policy and structure that enhances the health and welfare of all New Mexicans and businesses, that addresses the emerging future and that provides appropriate stable revenues for state and local government responsibilities; and

BE IT FURTHER RESOLVED that the taxation and revenue department and other state agencies, as requested, assist in the review and analysis of this memorial; and

BE IT FURTHER RESOLVED that the revenue stabilization and tax policy committee report its findings and recommendations to the New Mexico legislative council no later than December 15, 2000; and

BE IT FURTHER RESOLVED that a copy of this memorial be sent to the New Mexico legislative council, the secretary of taxation and revenue and the governor.