2017 Legislative Update
On December 15, 2016, the New Mexico Revenue Stabilization and Tax Committee considered legislation to reimpose the regressive food tax on New Mexico families (see coverage from KRQE News 13 and KOAT News 7). The bill the committee reviewed will go to the full legislature for passage during the upcoming session, which begins on January 17, 2017.
The food tax is being presented as one piece of a much larger “tax reform” package aimed at raising revenue for the state. Yet the legislators pushing the food tax have not answered one important question: how is it that 34 other states are able to balance their budgets without taxing food?
There are many reasons why a food tax is the wrong policy for New Mexico, but there is only one way to stop it: contact your legislators and the governor and tell them that taxing food does not belong in a “tax reform” package!
In late 2001, with the release of our fourth policy report, Think New Mexico launched a campaign to repeal New Mexico’s food tax.
At that time, New Mexico was one of only nine states that continued to fully tax food, along with Mississippi, Alabama, and West Virginia. This antiquated tax was extremely regressive, burdened working families, and worsened the state’s hunger problem.
Our bipartisan legislation to abolish the food tax came extremely close to passing in the 2002 legislative session, but ran out of time at the very end. In 2004, Think New Mexico teamed up with Governor Bill Richardson and House Speaker Ben Lujan to champion a successful bill to repeal the taxes on both groceries and selected medical services.
As of January 1, 2005, food is exempt from taxation in New Mexico.
The 2010 Veto of the Food Tax Reimposition
On March 24, 2010, Governor Richardson vetoed the reimposition of the food tax that had been approved during a special legislative session earlier that month.
The movement to reimpose the food tax emerged in late 2009 when the Greater Albuquerque Chamber of Commerce proposed it as an alternative to raising corporate or personal income taxes. Think New Mexico launched into action against this threat, which would have taken over $250 a year out of the pockets of the average family of four.
During the regular legislative session, a bill passed the Senate that would have taxed more than half of New Mexico’s staple foods (because the taxed foods included white flour tortillas, it was quickly dubbed the “tortilla tax”). Think New Mexico joined with other organizations to oppose the tortilla tax, and it was unanimously tabled in its first House committee. This chapter of the food tax saga came to an end when the Governor line-item vetoed the reimposition of the city and county portion of the food tax that was included in the tax package passed during the 2010 special session.
The Third Defeat of the Food Tax
Late at night on the final evening before the 2013 legislative session concluded, the Senate Finance Committee unexpectedly passed a complex tax package that, among other things, would have reimposed the food tax on New Mexico families — an idea that had not been raised during the first 59 days of the 60-day session. Just as we had in 2010, Think New Mexico sprang into action to defeat it once more.
We alerted the media, our allies in the legislature, and our thousands of supporters across the state, who sent 1,120 emails to their legislators asking them to oppose the food tax in the final hours of the session. By the time the tax package came up for a full vote of the Senate less than an hour before the end of the session, we were relieved and gratified to find that the food tax was no longer included.
2015-2016 Legislative Update
Although two prior attempts to reimpose the food tax were defeated, in October 2013 the New Mexico Municipal League, which represents the state’s mayors and city councils, announced that it would be bringing legislation to reimpose the food tax during the 2015 legislative session. The proposal was adopted as a high priority item by the Municipal League in August 2014 and draft legislation was presented to the legislature in December 2014.
In January 2015, Senate Bill 274 was introduced to reimpose the food tax. Think New Mexico worked hard to defeat it, and although it passed one Senate committee in a vote held without a public hearing, the bill was stopped before it reached the Senate. Once again, in 2016 legislation was introduced to reimpose the full food tax, and once again we successfully opposed it. However, we knew that this was not the last we had heard of the food tax.
Read commentary by Algernon D’Ammassa on KRWG New Mexico about why we should “flush the food tax!” • December 27, 2016
Read Think New Mexico’s 2015 opinion editorial opposing the reimposition of the food tax, which was published in the Albuquerque Journal, the Carlsbad Current-Argus, the Farmington Daily Times, the Gallup Independent, the Grant County Bea,t the Hobbs News-Sun, the Jal Record, the Las Cruces Sun-News, the Las Vegas Optic, the Los Alamos Monitor, the Mountain View Telegraph, the Rio Rancho Observer, the Ruidoso News, the Santa Fe New Mexican, the Silver City Daily Press, the Taos News, and the Valencia County News-Bulletin • January-February 2015
Listen to KVSF 101.5 radio story on the proposed 2015 reimposition of the food tax • December 29, 2014 (mp3, 14:32)
Watch KOB TV news story on the 2015 proposal to bring back the food tax • December 23, 2014 (2:14)
Watch KRWG Las Cruces news segment on the proposed 2013 reimposition of the food tax • October 30, 2013 (2:40)
Watch KRQE TV news segment on the proposed reimposition of the food tax in late 2013 • October 23, 2013 (2:30)
Listen to KSFR Santa Fe Public Radio report on the proposed reimposition of the food tax in late 2013 • October 25, 2013 (mp3, 6:33)
Read Bread New Mexico’s blog entry opposing the proposed 2013 reimposition of the food tax • October 29, 2013
Read Albuquerque Journal article on the proposed 2013 reimposition of the food tax • October 22, 2013
Watch Governor Richardson’s statement on his decision to veto the reimposition of the food tax.
Read the opinion editorial by Think New Mexico making the case for why Governor Richardson should veto the food tax • March 2010
Read editorials by the Carlsbad Current-Argus, the Edgewood Independent, the Las Cruces Sun-News, the Rio Grande Sun, and the Santa Fe New Mexican urging Governor Richardson to veto the reimposition of the food tax.
Listen to KUNM Public Radio report on the proposed reimposition of the food tax in 2010 • January 19, 2010 (mp3, 4:52)
Read Deming Headlight editorial opposing the reimposition of the food tax (which also ran in the Carlsbad Current-Argus, the Las Cruces Sun-News, and the Silver City Sun-News • January 1, 2010
Read Taos News editorial opposing the reimposition of the food tax • January 7, 2010
Read Rio Grande Sun editorial opposing the reimposition of the food tax • December 17, 2009
Read Santa Fe New Mexican article about how all five gubernatorial candidates oppose the reimposition of the food tax • December 22, 2009
Read the opinion editorial by Think New Mexico and the New Mexico Conference of Catholic Bishops opposing the reimposition of the food tax, which was published in 23 newspapers across the state, including the Albuquerque Journal, the Santa Fe New Mexican, and the Rio Grande Sun • December 2009
Read Santa Fe New Mexican editorial lauding the implementation of the food tax repeal • January 5, 2005
Read Las Vegas Daily Optic editorial celebrating the repeal of the food tax • January 4, 2005
Read Albuquerque Tribune article “Shoppers Praise End to Food Tax” • December 30, 2004
Read Ruidoso News article on passage of food tax repeal legislation • December 24, 2004
Read Santa Fe New Mexican editorial on food tax repeal legislation • February 20, 2004
Read Santa Fe New Mexican article about Think New Mexico’s food tax repeal bill, championed by Governor Richardson and House Speaker Ben Lujan • February 7, 2004
Read Santa Fe New Mexican article on Governor Richardson’s support for the food tax repeal • January 10, 2004
Read Associated Press article about how New Mexico’s food tax burdens working families • January 19, 2002
Read Santa Fe New Mexican editorial on the food tax repeal • November 4, 2001
According to a 2012 report by the Tax Foundation and a 2009 report by the Center on Budget and Policy Priorities, only Alabama and Mississippi still fully tax the sale of food
Read Stateline article on food tax repeal efforts in other states • January 29, 2007
Questions about how the food tax repeal affects you as a consumer or business? Check out the New Mexico Taxation & Revenue Department’s Fact Sheet on the Food Tax Deduction.