House Republicans Refuse to Level Playing Field for Small New Mexico Businesses
Monday, October 3, 2016
House Republican lawmakers refuse to create internet sales tax on out-of-state corporations putting local businesses at disadvantage
Santa Fe – Today, on the House floor as House Republicans voted down a measure that would have created a 5.125% internet sales tax on out-of-state corporations that would have helped New Mexico small businesses compete against corporations like Amazon. Representative Carl Trujillo (D-Santa Fe) introduced the amendment to Senate Bill 6, creating a voluntary 5.125% internet sales tax for companies not based in New Mexico that would have generated roughly $10 million in revenue.
“As we work through this budget crisis created by House Republicans in which services are drastically being cut for everyday New Mexicans, it is paramount that we preserve our valuable revenue streams,” stated Representative Carl Trujillo (D-Santa Fe). “I will continue to work diligently to provide an even playing field for New Mexico’s small businesses which are the economic drivers of our economy, and are currently at a huge disadvantage to the Amazon’s of the world.”
The provision was originally included in SB 6 that was passed with bipartisan support in the Senate and would have created a 5.125% internet tax on the gross sales in New Mexico of large companies not based in the state. These are the same taxes small businesses in New Mexico already pay and the amendment would have put large out-of-state corporations more on par with local businesses. The provision was then struck out by House Republicans in the House Ways and Means Committee, only to be re-introduced as an amendment on the House floor.