HOUSE MEMORIAL 61

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Eleanor Chavez

A MEMORIAL

REQUESTING THE NEW MEXICO LEGISLATURE TO CONSIDER THE EFFECTS OF TAX CREDITS AND DEDUCTIONS UPON THE OPERATION OF VITAL STATE FUNCTIONS.

     WHEREAS, the legislative finance committee's February 2009 revenue brief reports that recurring revenue for fiscal year 2009 will be five billion seven hundred million dollars ($5,700,000,000), almost three hundred million dollars ($300,000,000) less than fiscal year 2008 or a decline of four and nine-tenths percent; and

     WHEREAS, the same legislative finance committee brief reports that the decline in state revenues would have been worse without significant but unsustainable strength in federal mineral leasing; and

     WHEREAS, the same legislative finance committee brief reports that recurring revenue for fiscal year 2010 will be two hundred sixty-eight million dollars ($268,000,000) less than for fiscal year 2009; and

     WHEREAS, revenues are expected to gain some ground in fiscal year 2011, increasing four and nine-tenths percent back to the 2009 figure of five billion seven hundred million dollars ($5,700,000,000) in the event that the economy improves as projected; and

     WHEREAS, the New Mexico legislature has enacted a great many tax credits already, including a rural jobs tax credit; a laboratory partnership with small business tax credit; a technology jobs tax credit; a film production tax credit; a New Mexico filmmaker tax credit; an affordable housing tax credit; a qualified research and development small business tax credit for high wage jobs; an alternative energy products manufacturers' tax credit; a qualified business facility rehabilitation tax credit; a welfare-to-work employer tax credit; a job mentorship tax credit; a solar market development tax credit; a residential and small business solar thermal and photovoltaic market development tax credit; a working families tax credit; a special needs adopted child tax credit; a tax credit equal to fifty percent of the fair market value of land or interest in land that is conveyed for the purpose of open space, natural resource or biodiversity conservation; an angel investment credit tax credit for qualified investments; a renewable energy production tax credit; a sustainable building tax credit; an agricultural water conservation expenses tax credit; a blended biodiesel fuel tax credit to offset the special fuel excise tax; a rural health care practitioner tax credit; a credit for the preservation of cultural property; and an intergovernmental business tax credit, among others; and

     WHEREAS, the legislature has already enacted over forty-five different deductions from taxable income; and

     WHEREAS, the legislature has already enacted more than fifty different exemptions from taxable income; and

     WHEREAS, in this first session of the forty-ninth legislature alone, there is legislation that proposes tax credits, tax deductions and tax exemptions that have a combined projected fiscal impact of almost two hundred seventy-nine million dollars ($279,000,000) for 2011, an amount greater than the projected drop in revenues from 2009 to 2010;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the legislature as a whole be requested to carefully consider the budgetary needs of the state when considering any further tax credits, exemptions or deductions; and

     BE IT FURTHER RESOLVED that when considering any of the proposed tax credits, deductions and exemptions before it, the legislature carefully consider the role that state government is called upon to play in a troubled economy, providing a safety net to a larger pool of residents who now qualify for programs such as medical assistance; food stamps; temporary assistance for needy families; and many other public programs to assist low-income households; and

     BE IT FURTHER RESOLVED that the legislature consider the impact of tax credits, exemptions and deductions on all of the necessary functions of the state that must be maintained even in the face of diminished revenues; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the governor and to the president pro tempore of the senate.

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