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

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

WHEREAS, state tax policy has a significant impact on New Mexico's economy, the health and welfare of its residents and the operations of the state and local governments; and

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

WHEREAS, a multitude of tax exemptions, deductions and credits have been enacted into the various tax laws over the years in response to economic and social conditions that are now changing rapidly; and

WHEREAS, the tax burden on low-income families affects their ability to be self-sustaining and increases their reliance on government services; and

WHEREAS, the legislature and a host of state, local, civic and business leaders have expressed a strong commitment to support economic development in New Mexico; and

WHEREAS, changes in the national and world economy, such as the growth in electronic commerce, are affecting the tax base in New Mexico;

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

BE IT FURTHER RESOLVED that the review include an assessment of the impact and effectiveness of New Mexico's tax structure and state tax policy, including the impact and effectiveness of the various tax exemptions, deductions and credits on businesses, economic development and individuals of varying ages and incomes; and the impact of state tax policy and the tax structure on revenue stability and the operations of state and local governments; and

BE IT FURTHER RESOLVED that the committee make recommendations for changes that would create a more equitable state tax policy and tax structure that will benefit all citizens and businesses in the state, address future needs and provide for appropriate stable revenues for state and local government operations; and

BE IT FURTHER RESOLVED that the taxation and revenue department and other state agencies, as requested, assist the revenue stabilization and tax policy committee in its review and analysis; and

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

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