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Daily Tax Report: State

New Mexico Pandemic Tax Relief Package Signed Into Law

June 30, 2020, 1:25 AM

New Mexico residents and businesses won’t have to worry about accruing interest and penalties for late tax payments during the pandemic under a law signed Monday by Gov. Michelle Lujan Grisham.

Taxpayers will still have to meet state filing deadlines, but the law (H.B. 6) temporarily waives interest and penalties associated with late payments of personal and corporate income, withholding, gross receipts, and property taxes.

“The financial pain caused by COVID-19 is real,” Lujan Grisham (D) said in a statement. “This bill will help New Mexicans who through no fault of their own were unable to pay their taxes on time.”

The measure also increase the amount of money cities and counties will receive from the state from online sales taxes in the coming year and decouples the state’s treatment of corporate net operating losses from changes made to the federal tax code in the CARES Act (Public Law 116-136). Additionally, payments to some New Mexico health care providers made under the CARES Act will be exempt from gross receipts taxes.

Lawmakers passed H.B. 6 earlier in June as part of a special legislative session to address the impacts of Covid-19.

To contact the reporter on this story: Brenna Goth in Phoenix at bgoth@bloomberglaw.com

To contact the editors responsible for this story: Jeff Harrington at jharrington@bloombergtax.com; Patrick Ambrosio at pambrosio@bloombergtax.com

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