New Mexico weighs tax code overhaul amid budget crisis

SANTA FE, N.M. (AP) — Members of the New Mexico Senate are listening to public comments on a proposal to overhaul much of New Mexico's tax code. The House-approved initiative would eliminate a wide array of tax exemptions, deductions, credits in an effort designed to stabilize state revenue streams and lower overall tax rates. Republican Rep. and bill sponsor Jason Harper of Rio Ranch told a Senate panel Wednesday that the plan is designed to improve the overall business climate in New Mexico. Legislative Finance Committee economist Jon Clark says the reforms would have a major impact on nonprofit entities. Lawmakers are racing to craft a balanced budget before they adjourn Saturday amid a sustained downturn in tax revenues linked to a downturn in the oil sector and a sluggish economy.