New Mexico tax package negotiations stall before session ends

New Mexico lawmakers are facing a challenge as they try to finalize a tax benefits package. With less than 24 hours left in the legislative session, negotiations continued on Friday to resolve differences between the House and Senate. The proposed package would cost $126 million in the next year and over half a billion dollars in the next four years. Earlier in the week, the Senate made a significant change by removing the funding method from the package. This included a 0.28% tax on oil and a reduction in natural gas taxes, which were expected to bring in $130 million. The House did not agree with these changes, leading to a need for further negotiations. On Friday morning, a conference committee met to discuss the differences between the two chambers. Their goal was to reach an agreement, with at least two senators and two House members needed to support any compromise. During initial talks, the committee agreed to direct nearly $10 million in liquor tax revenue to a Tribal Fund rather than the General Fund. However, two of the three senators voted against adding back the oil and gas tax changes. Sen. Carrie Hamblen emphasized the Senate's desire to avoid complicating the situation further, while Rep. Derrick Lente stressed the importance of good tax policy, pointing out the oil and gas industry's significant profits in 2024. There are limited options left for funding the tax package, as the budget for the upcoming year has already been approved. Lawmakers could potentially explore amending the budget, using reserves, or finding new revenue sources to support the package. Time is running out, and both parties are looking for a solution.