Since taking office in January 2011, Governor Martinez has worked with the New Mexico Legislature to enact significant changes to State tax policy. In January 2014 she was 1 of 6 governors recognized by the nonpartisan Tax Foundation for Outstanding Achievement in State Tax Reform.
The 2013 New Mexico Jobs Package phases in a reduced corporate income tax rate from 7.6% to a maximum rate of 5.9% by January 1, 2018.
|Year||<$500,000||$500,000 - $1 million||>$1 million|
In addition, the bill phases in a single sales factor apportionment methodology for the income of multi-state corporations, whose principal business activity is manufacturing, over the same 5-year period.
For the purposes of apportioning income, “manufacturing” excludes construction, farming, power generation, and processing natural resources including hydrocarbons.
Five-Year Policy Changes:
|2018||Single Sales Factor|
In January 2014 Ernst & Young published a study on tax competitiveness and found that New Mexico has the best tax climate for manufacturers in the 9-state western region. Read the Ernst & Young report.
In August 2014 Kiplinger named New Mexico the 8th Most Tax Friendly State, up from 9th in 2013.