SENATE MEMORIAL 60

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Cynthia Nava

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

     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.

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