Gov. Michelle Lujan Grisham introduces historic tax reform

[Skip to content](#main-content)

# PRESS RELEASES

1. [Home](https://www.governor.state.nm.us) 2. [Press Releases](https://www.governor.state.nm.us/press-releases/) 3. Gov. Michelle Lujan Grisham introduces historic tax reform

# Gov. Michelle Lujan Grisham introduces historic tax reform

Feb 10, 2023 | [Legislative Updates](https://www.governor.state.nm.us/legislative-updates/), [Press Releases](https://www.governor.state.nm.us/press-releases/)

_Bill would lower Gross Receipts Tax rate, end ‘pyramiding’ from professional services_

SANTA FE — Gov. Michelle Lujan Grisham unveiled bipartisan legislation Thursday that would lower the state’s Gross Receipts Tax rate an additional quarter-percent to 4.625 percent and create a deduction for a wide range of services sold to other businesses, saving New Mexicans as much as $411 million in total.

House Bill 367 is being sponsored by Rep. Jason Harper.

The new deduction will alleviate the “pyramiding” consequences of the state’s current Gross Receipts Tax (GRT) structure, in which businesses pass on the cost of taxes to their customers. The anti-pyramiding provision alone could save New Mexicans as much as $179 million annually.

“This tax cut builds on the historic reductions we enacted last year, and the commonsense anti-pyramiding provisions in this bill will make goods and services even more affordable for all New Mexicans,” said **Gov. Michelle Lujan Grisham**. “Plus, it’s going to make New Mexico businesses even more competitive, continuing this administration’s commitment to making our state the very best place to do business.”

“Small businesses are really hit the hardest by pyramiding in the Gross Receipts Tax,’ said **Rep. Jason Harper**. “This reform will be a godsend, helping all 160,000-plus small businesses in New Mexico.”

“The New Mexico Chamber shares the governor’s focus on growing and diversifying our economy. We believe these much-needed targeted tax reforms will save our small businesses money, make our tax code more competitive, and help retain and grow jobs in New Mexico,” said **Rob Black**, president and CEO of the New Mexico Chamber of Commerce.

“By expanding New Mexico’s tax base over the past several years and with reserves at record levels, we’ve set the stage to enact significant tax reform and still keep the state on sound fiscal footing,” said Taxation and Revenue **Secretary Stephanie Schardin Clarke**.

The quarter-cent rate reduction in the bill would be on top of the 1/8 cent cut already scheduled to take effect on July 1. That would bring the state GRT rate to 4.625 percent beginning July 1. Local option rates imposed by cities and counties would not be affected.

The lower rate will save New Mexicans about $232 million.

The state’s current gross receipts tax rate is 5 percent, down from 5.125 percent thanks to legislation approved by Gov. Lujan Grisham last year.

The anti-pyramiding provisions of the bill would create a deduction for legal, accounting, information technology, architectural, engineering and payroll services sold to other businesses. The change is expected to be especially helpful for small businesses, which are more likely to outsource functions like accounting, payroll and legal services.

#### Recent Posts

*  [Governor appoints Rebecca Roose as Natural Resources Trustee](https://www.governor.state.nm.us/2026/06/05/governor-appoints-rebecca-roose-as-natural-resources-trustee/)  * [U.S. Supreme Court approves Rio Grande compact settlement – Agreement ends 13-year interstate dispute](https://www.governor.state.nm.us/2026/05/28/u-s-supreme-court-approves-rio-grande-compact-settlement-agreement-ends-13-year-interstate-dispute/)  * [Health care loan repayment expands to address doctor shortage – Record expansion part of strategy to add health providers in NM](https://www.governor.state.nm.us/2026/05/26/health-care-loan-repayment-expands-to-address-doctor-shortage-record-expansion-part-of-strategy-to-add-health-providers-in-nm/) * [Governor declares statewide drought and severe fire conditions – Agencies will coordinate community and water protection efforts](https://www.governor.state.nm.us/2026/05/20/governor-declares-statewide-drought-and-severe-fire-conditions-agencies-will-coordinate-community-and-water-protection-efforts/)    * [Governor Lujan Grisham leads trade mission to Japan](https://www.governor.state.nm.us/2026/05/11/governor-lujan-grisham-leads-trade-mission-to-japan/)

## Press Release Archive

* [June 2026](https://www.governor.state.nm.us/2026/06/) (1) * [May 2026](https://www.governor.state.nm.us/2026/05/) (6) * [April 2026](https://www.governor.state.nm.us/2026/04/) (5) * [March 2026](https://www.governor.state.nm.us/2026/03/) (10) * [February 2026](https://www.governor.state.nm.us/2026/02/) (21) * [January 2026](https://www.governor.state.nm.us/2026/01/) (10) * [December 2025](https://www.governor.state.nm.us/2025/12/) (7) * [November 2025](https://www.governor.state.nm.us/2025/11/) (6) * [October 2025](https://www.governor.state.nm.us/2025/10/) (11) * [September 2025](https://www.governor.state.nm.us/2025/09/) (11) * [August 2025](https://www.governor.state.nm.us/2025/08/) (7) * [July 2025](https://www.governor.state.nm.us/2025/07/) (9) * [June 2025](https://www.governor.state.nm.us/2025/06/) (10) * [May 2025](https://www.governor.state.nm.us/2025/05/) (4) * [April 2025](https://www.governor.state.nm.us/2025/04/) (12) * [March 2025](https://www.governor.state.nm.us/2025/03/) (13) * [February 2025](https://www.governor.state.nm.us/2025/02/) (11) * [January 2025](https://www.governor.state.nm.us/2025/01/) (11) * [December 2024](https://www.governor.state.nm.us/2024/12/) (5) * [November 2024](https://www.governor.state.nm.us/2024/11/) (9) * [October 2024](https://www.governor.state.nm.us/2024/10/) (10) * [September 2024](https://www.governor.state.nm.us/2024/09/) (16) * [August 2024](https://www.governor.state.nm.us/2024/08/) (9) * [July 2024](https://www.governor.state.nm.us/2024/07/) (13) * [June 2024](https://www.governor.state.nm.us/2024/06/) (17) * [May 2024](https://www.governor.state.nm.us/2024/05/) (5) * [April 2024](https://www.governor.state.nm.us/2024/04/) (9) * [March 2024](https://www.governor.state.nm.us/2024/03/) (13) * [February 2024](https://www.governor.state.nm.us/2024/02/) (19) * [January 2024](https://www.governor.state.nm.us/2024/01/) (13) * [December 2023](https://www.governor.state.nm.us/2023/12/) (10) * [November 2023](https://www.governor.state.nm.us/2023/11/) (8) * [October 2023](https://www.governor.state.nm.us/2023/10/) (13) * [September 2023](https://www.governor.state.nm.us/2023/09/) (6) * [August 2023](https://www.governor.state.nm.us/2023/08/) (9) * [July 2023](https://www.governor.state.nm.us/2023/07/) (16) * [June 2023](https://www.governor.state.nm.us/2023/06/) (19) * [May 2023](https://www.governor.state.nm.us/2023/05/) (17) * [April 2023](https://www.governor.state.nm.us/2023/04/) (11) * [March 2023](https://www.governor.state.nm.us/2023/03/) (24) * [February 2023](https://www.governor.state.nm.us/2023/02/) (23) * [January 2023](https://www.governor.state.nm.us/2023/01/) (23) * [December 2022](https://www.governor.state.nm.us/2022/12/) (14) * [November 2022](https://www.governor.state.nm.us/2022/11/) (17) * [October 2022](https://www.governor.state.nm.us/2022/10/) (19) * [September 2022](https://www.governor.state.nm.us/2022/09/) (22) * [August 2022](https://www.governor.state.nm.us/2022/08/) (26) * [July 2022](https://www.governor.state.nm.us/2022/07/) (27) * [June 2022](https://www.governor.state.nm.us/2022/06/) (23) * [May 2022](https://www.governor.state.nm.us/2022/05/) (15) * [April 2022](https://www.governor.state.nm.us/2022/04/) (17) * [March 2022](https://www.governor.state.nm.us/2022/03/) (21) * [February 2022](https://www.governor.state.nm.us/2022/02/) (25) * [January 2022](https://www.governor.state.nm.us/2022/01/) (18) * [December 2021](https://www.governor.state.nm.us/2021/12/) (10) * [November 2021](https://www.governor.state.nm.us/2021/11/) (7) * [October 2021](https://www.governor.state.nm.us/2021/10/) (8) * [September 2021](https://www.governor.state.nm.us/2021/09/) (23) * [August 2021](https://www.governor.state.nm.us/2021/08/) (14) * [July 2021](https://www.governor.state.nm.us/2021/07/) (12) * [June 2021](https://www.governor.state.nm.us/2021/06/) (18) * [May 2021](https://www.governor.state.nm.us/2021/05/) (14) * [April 2021](https://www.governor.state.nm.us/2021/04/) (24) * [March 2021](https://www.governor.state.nm.us/2021/03/) (15) * [February 2021](https://www.governor.state.nm.us/2021/02/) (17) * [January 2021](https://www.governor.state.nm.us/2021/01/) (33) * [December 2020](https://www.governor.state.nm.us/2020/12/) (33) * [November 2020](https://www.governor.state.nm.us/2020/11/) (38) * [October 2020](https://www.governor.state.nm.us/2020/10/) (42) * [September 2020](https://www.governor.state.nm.us/2020/09/) (43) * [August 2020](https://www.governor.state.nm.us/2020/08/) (39) * [July 2020](https://www.governor.state.nm.us/2020/07/) (42) * [June 2020](https://www.governor.state.nm.us/2020/06/) (47) * [May 2020](https://www.governor.state.nm.us/2020/05/) (47) * [April 2020](https://www.governor.state.nm.us/2020/04/) (39) * [March 2020](https://www.governor.state.nm.us/2020/03/) (62) * [February 2020](https://www.governor.state.nm.us/2020/02/) (40) * [January 2020](https://www.governor.state.nm.us/2020/01/) (15) * [December 2019](https://www.governor.state.nm.us/2019/12/) (16) * [November 2019](https://www.governor.state.nm.us/2019/11/) (6) * [October 2019](https://www.governor.state.nm.us/2019/10/) (6) * [September 2019](https://www.governor.state.nm.us/2019/09/) (11) * [August 2019](https://www.governor.state.nm.us/2019/08/) (9) * [July 2019](https://www.governor.state.nm.us/2019/07/) (14) * [June 2019](https://www.governor.state.nm.us/2019/06/) (7) * [May 2019](https://www.governor.state.nm.us/2019/05/) (12) * [April 2019](https://www.governor.state.nm.us/2019/04/) (12) * [March 2019](https://www.governor.state.nm.us/2019/03/) (19) * [February 2019](https://www.governor.state.nm.us/2019/02/) (29) * [January 2019](https://www.governor.state.nm.us/2019/01/) (14) * [December 2018](https://www.governor.state.nm.us/2018/12/) (1)

### Categories

* [2022 Wildfires](https://www.governor.state.nm.us/2022-wildfires/) * [COVID-19](https://www.governor.state.nm.us/covid-19/) * [Early Childhood Education](https://www.governor.state.nm.us/early-childhood-education/) * [Legislative Updates](https://www.governor.state.nm.us/legislative-updates/) * [Press Releases](https://www.governor.state.nm.us/press-releases/) * [Public Safety](https://www.governor.state.nm.us/public-safety/) * [Uncategorized](https://www.governor.state.nm.us/uncategorized/)

## Contact

The Office of Governor Michelle Lujan Grisham is located on the fourth floor of the New Mexico State Capitol in Room 400.

Address: 490 Old Santa Fe Trail Room 400 Santa Fe, NM 87501

Phone: (505) 476-2200 Toll free: (833) 520-0020

## Quick Links

* [Open Positions](https://www.governor.state.nm.us/apply/open-positions/) * [Boards and Commissions](https://www.governor.state.nm.us/apply/boards-and-commissions/) * [Judicial and District Attorney Posts](https://www.governor.state.nm.us/judicial-and-district-attorney-posts/)

## Flag Status