SANTA FE, N.M. (AP) — Corporations will benefit from tax cuts, but larger cities and counties may be forced to increase taxes in coming years because of an economic development package approved by the Legislature.
Republican Gov. Susana Martinez said Saturday she’ll sign the tax measure into law and downplayed the possibility that consumers could end up paying more for goods and services because of one provision in the legislation.
She said the tax bill was crucial for diversifying New Mexico’s economy and bringing higher paying jobs to the state
“With the compromise jobs package that we passed today, I am confident we have the tools necessary to move New Mexico forward,” Martinez said after the session.
The tax bill represented one of her biggest victories in the 60-day session.
The legislation will:
— Lower the state’s corporate income tax rate from 7.6 percent to 5.9 percent over five years. Currently, the state’s top rate is the highest among neighboring states.