Tax credits, deductions getting second look in legislative session

From the Santa Fe New Mexican.com - by Trip Jennings - New Mexico loses $1.3 billion in revenue each year through the hundreds of credits, exemptions and deductions in the state's tax code. Reduce a tax credit here, eliminate a tax deduction there, and the dollars generated just might help solve New Mexico's budgetary crisis, some state lawmakers are saying. The state is trying to close a projected shortfall of between $200 million and $452 million for the year that starts July 1, and so far the emphasis has been on cost-saving measures. But some lawmakers argue that foraging for unexpected dollars in the tax code is a no-brainer. "Conceptually, a lot of people agree with it. We just have to get the political courage to do it," said Sen. Tim Keller, D-Albuquerque, a supporter. Credits, exemptions and deductions are a fixture of any tax code, and they are everywhere. For example, think of when you buy milk. The purchase isn't taxed in New Mexico because the state exempts food from the gross-receipts tax, a decision that cost the state more than $200 million in tax dollars last year. Read more

Tax credits, deductions getting second look in legislative session