By Tony Parra: PNT Staff Writer
A bill waiting for Gov. Richardson’s signature will bring additional revenue to Portales in the form of a compensating tax on purchases from out-of-state businesses.
Members of the New Mexico Municipal League outlined the bill during an informational meeting Monday at the Memorial Building.
Under the proposal a tax would be imposed on the value of equipment and goods purchased from an out-of-state vendor for use in New Mexico. Portales city manager Debi Lee said it would be the same percent as the gross receipt tax in Portales (7.56 percent).
A business currently pays only a 5 percent compensating tax, only, if it makes an out-of-state purchase. If the same equipment is obtained in New Mexico, it is subject to the combined state and local gross-receipt taxes, according to published reports.
Lee said the bill would add approximately $50,000 annually.
“The state-wide compensation tax will add dollars from out-of-state business purchases,” Lee said. “That tax will benefit us. Those are tax dollars, lost.”
Municipal League members talked to officials from District 4, which is comprised of 14 municipalities in eastern New Mexico, including Clovis.
Regina Romero, intergovernmental relations director for the New Mexico Municipal League, also informed the municipalities from DWI legislation that requires an ignition interlock device to be installed on all vehicles driven by a convicted of DWI offender.
The devices are required to be on the vehicles for one year after the first conviction, two years after the second conviction, three years after the third conviction and the fourth and thereafter would require the device be operational in their vehicles for the rest of the offender’s life.
“The DWI laws are becoming tougher and tougher for offenders every year,” Romero said. “Offenders will have to pay for the costs.”
Some of the other bills outlined were:
l Lowering the age limit requirement for a handgun license permit from 25 to 21 and Senate Bill 103, which prohibits law enforcement agencies from using state funds, equipment, personnel or resources for detecting or apprehending persons for immigration violations.
l Requiring a sex offender from out of state to register within 10 days of arrival in New Mexico. The bill requires sex offenders to notify in writing to sheriff and law enforcement entities of their offender status. They must also re-register every 90 days instead of once a year as it is now, Romero said.