New Mexico governor signs business tax cuts
SANTA FE, N.M.—New Mexico Gov. Susana Martinez has signed legislation into law to reduce taxes on the construction and manufacturing industries.
The governor and her supporters say the tax cuts will lower costs for businesses and encourage companies to hire workers.
The legislation will remove the gross receipts tax from certain transactions involving construction and manufacturing companies. Businesses complain that they sometimes pay a tax on a tax -- so-called tax pyramiding -- when they buy services and goods that are then incorporated into a final product.
Martinez signed the tax measure on Thursday in Albuquerque.
The tax cuts, once fully implemented, are expected to cost state and local governments more than $50 million a year in reduced revenues, according to a report by the Legislative Finance Committee.