SANTA FE, N.M. (AP) — An examination of New Mexico state tax breaks by the Office of the State Auditor shows that extractive industries such as oil, coal and copper mining together account for the largest share of foregone revenue.
The report was presented to state lawmakers Friday by State Auditor Tim Keller and staff. It tallies more than $1 billion in estimated tax breaks in 2016. The state waived nearly $400 million in taxes from extractive industries.
Exemptions, deductions and credits on gross receipts taxes account for about one-quarter of tax breaks. Recent tax reform efforts by lawmakers and Gov. Susana Martinez focused on shoring up gross receipts tax revenues on sales and business services, while avoiding redundant charges.
Of 180 tax breaks identified in the report, 23 had no available data.