SANTA FE (AP) — Republican lawmakers are proposing to eliminate New Mexico's personal and corporate income taxes and replace them with a broad-based tax on sales of goods and services.
Rep. Tom Taylor and Sen. Bill Sharer, both of Farmington, propose a 2 percent consumption tax. They say it would raise enough revenue for the state to eliminate income taxes and other taxes on the purchase of cars and trucks and insurance premiums.
New Mexico imposes a gross receipts tax on many goods and services, but the lawmakers say there are too many exemptions and deductions.
Taylor said the proposal will offer tax refunds for low-income New Mexicans.
The lawmakers said their proposal will keep severance taxes on oil and gas production, property taxes and taxes on gasoline, which help finance roads.