New Mexico advances bill exempting Social Security from income taxes

A proposal to exclude Social Security benefits from most New Mexicans’ personal income taxes advanced to its final committee Thursday as the final week of the 30-day budget session approached.

The bipartisan SB 108 was one of several bills introduced this session seeking exemption for Social Security income from personal taxes, and had the support of Gov. Michelle Lujan Grisham.

The Senate Tax, Business and Transportation Committee met at the Capitol Thursday to act on an omnibus package combining SB 108 with proposals to reduce gross receipts taxes, and extending and increasing a solar energy installation tax credit.

More:Bill that would make Election Day a holiday in New Mexico advances in state legislature

New Mexico State Sen.  Michael Padilla, D-Albuquerque, is seen during the 2019 session at the state Capitol in Santa Fe.

SB 108’s Democratic co-sponsor, state Sen. Michael Padilla of Albuquerque, said, “It’s high time that we eliminate the tax on Social Security. … We’re one of only 12 states remaining that still tax Social Security. This is an issue that has faced a lot of New Mexico families in retirement.”

Padilla noted that 49 percent of New Mexico’s foster children are being raised by retired grandparents, as he himself was. The $80 million cost to revenue, he said, would be to spendable income for the greater benefit of the economy.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button