A new tax cut package in New Mexico will add $1 billion to the state’s budget, state officials said Thursday.
State Sen. Mark Diaz (D-Laramie), a member of the House Ways and Means Committee, told reporters the plan would raise about $300 million over five years.
It also includes a $400 million tax cut for individuals and $400,000 for businesses, Diaz said.
He said the state will see $2.7 billion in new revenue, largely from sales taxes and an increase in the number of business owners.
The plan will also include $100 million in tax credits for low-income residents.
It’s a first step toward getting New Mexico to the $2 billion goal, Diaz added.
New Mexico’s governor, Susana Martinez, will also be a major participant in the new tax package, Diaz noted.
New Mexican President Kevin Grantham announced last week that he will be running for a second term in 2020.