From the executive director: Your voice is needed!
New Mexico’s State Tax Exemption for Nonprofits is at risk!
Governor Martinez has announced that tax reform will definitely be on her agenda for the special session scheduled to start May 24. She has shared that her goal to balance the budget is to “close tax loopholes” by pushing a version of House Bill 412, the tax reform package introduced during the 2017 regular legislative session.
I am deeply concerned that tax reform for New Mexico will include taxing nonprofits. Why would the relatively small amount of revenue generated by this change be worth the harm to New Mexico nonprofits? As we know, the nonprofit sector plays a critical role in providing a significant portion of fundamental services as well as offering an important social safety net for New Mexicans.
New Mexico may require nonprofits to pay gross receipts tax, which will reduce available funds. Taxing state contracts will mean that fewer people will be helped. Fewer funds available to The Food Depot and its nonprofit partner agencies means fewer meals provided to hungry New Mexicans. In a state with such high poverty, high food insecurity and high unemployment, can we really afford to take away meals from hungry New Mexicans?
Please use your voice! Contact your House Representatives and State Senators to let them know that you oppose any taxes on nonprofit organizations! If you don’t know who your legislators are, go to www.nmlegis.gov/Members/Find_my_Legislator.