NEW MEXICO (KRQE) – The New Mexico Taxation and Revenue Department released the 2024 Tax Expenditure Report. According to the report, the gross receipts tax deductions for groceries and prescription drugs were the state’s largest tax expenditures.
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The gross receipts tax deduction for prescription drugs, durable medical equipment, oxygen and medical cannabis accounted for $303.9 million in forgone state revenue and $202.6 million in foregone local government revenue, according to NM Taxation and Revenue Department. The gross receipts tax reduction for groceries and partial hold harmless distributions to local governments accounted for $404.1 million foregone by the state and $62.8 million foregone by local governments, according to NM Taxation and Revenue Department.
“New Mexico policymakers have taken significant action in the past six years to make New Mexico’s tax code more equitable and progressive. The tax expenditure report provides transparency into those efforts, demonstrating our state’s commitment to fighting poverty and supporting prosperity for all New Mexicans,” Taxation and Revenue Department Secretary Stephanie Schardin Clarke said in a release.
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