Duke Rodriguez, a Republican candidate for New Mexico governor wants to eliminate the state’s gross receipts tax on retail sales entirely — and says the state can afford it right now. Rodriguez, a former state cabinet secretary and hospital executive, reiterated the idea during Friday’s Albuquerque Journal Republican gubernatorial debate, arguing the state’s surplus reserves of $3 to $4 billion cover the estimated $1.2 to $1.5 billion cost of elimination.
Rodriguez was careful to draw a distinction: his proposal targets only the state’s portion of the tax, leaving intact the local rates cities and counties levy to fund police, fire and other services. “It’s the state portion of New Mexico gross receipts tax,” Rodriguez said. “I still say cities and counties should have their local control.”
Fellow candidate Gregg Hull called the personal income tax the “lowest-hanging fruit” for reform but cautioned that eliminating the gross receipts tax required protecting municipal revenue streams that fund police and fire departments. Doug Turner, who is also running for the Republican nomination, didn’t put a specific number on the shortfall from GRT elimination, but said “that cost could be as much as two billion or three billion dollars that the state would have to come up with.”
Rodriguez pushed back against the estimate of a $2 billion shortfall, arguing that the actual $1.2 billion to $1.5 billion cost of his targeted tax cut is already covered by the state’s massive revenue windfall. “We have a surplus now that goes directly into our reserves closer to three to four billion,” Rodriguez explained, noting that the state could easily afford the elimination “before even talking about cutting services.” Instead, he argued the state is failing because it puts money “in the wrong places.” His proposed solution is to implement better accountability and demand better results from the money that is already being spent. He’s also initiated lawsuits to undo the universal childcare program, a new spending program he opposes.
Rodriguez’s plan is not without precedent. When the state legislature and Governor Bill Richardson eliminated the sales tax on groceries in 2005, they created a “hold harmless” payment to cities and counties paid from other state funds to make up for the lost sales tax revenue.
Vote in the June 2 Primary
Early voting is open now through May 30.
- Now through May 15 — Early voting and same-day registration available
- May 16–May 30 — Early voting and same-day registration expand to additional locations
- All early voting locations closed Monday, May 25 in observance of Memorial Day
New this year: The June 2 primary is New Mexico’s first under a semi-open system. Voters with no party affiliation may choose a Republican or Democratic ballot at the polls without changing their registration.
Find early voting locations: NMVote.org
Find your county clerk: sos.nm.gov