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A MEMORIAL

REQUESTING THE INTERIM REVENUE STABILIZATION AND TAX POLICY

COMMITTEE TO STUDY CURRENT LAW RELATING TO THE TREATMENT OF

INCOME EARNED IN NEW MEXICO BY NONRESIDENT EMPLOYEES ALONG

THE BORDER AND RECOMMEND PROPOSED LEGISLATION FOR THE NEXT

LEGISLATIVE SESSION.

WHEREAS, it is an important state policy in New Mexico

to foster economic development along the international border

with Mexico; and

WHEREAS, current law allows nonresidents working in

manufacturing facilities in New Mexico that are located

within twenty miles of the Mexican border to allocate their

New Mexico incomes to their states of residence for income

tax purposes; and

WHEREAS, current law does not appear to be achieving its

goal of attracting manufacturers to New Mexico; and

WHEREAS, current law does not include the types of

businesses that are likely to move to New Mexico; and

WHEREAS, federal law enforcement agencies have expressed

an interest in moving to the New Mexico border region, but

are not included in the current law; and

WHEREAS, one law enforcement agency that is interested

in moving to the New Mexico border region would bring three

thousand to five thousand new jobs to the state; and

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WHEREAS, location decisions of industries have been

adversely affected by the perception that the New Mexico

income tax levied on their nonresident employees under the

current law could affect their ability to attract labor if

the facilities are located in New Mexico;

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE

STATE OF NEW MEXICO that the interim revenue stabilization

and tax policy committee be requested to study the current

law relating to the treatment of income earned in New Mexico

by nonresident employees along the border and determine

whether the law should be updated or simply replaced; and

BE IT FURTHER RESOLVED that the interim revenue

stabilization and tax policy committee be requested to

recommend legislation, as needed, for the 2009 legislative

session; and

BE IT FURTHER RESOLVED that copies of this memorial be

transmitted to the New Mexico legislative council and the

chair of the interim revenue stabilization and tax policy

committee.