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For the ehth straht year, I am sponsoring legislation to close New Mexico's corporate tax loophole.

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We are the last western state with a corporate tax that lets multistate companies use subsidiaries to transfer otherwise taxable money out of New Mexico and avoid paying their fair share of corporate tax.

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Amazingly, this different set of rules is available only for out of state companies meaning our New Mexico businesses pay corporate tax while some of their competitors pay little or no tax. Senate Bill 9 requires all companies that pay corporate tax to play by the same set of rules and apply the same tax rates.

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For multi-state corporations, it requires a "combined return" which accounts for New Mexico's share of the corporation's profit. As you will see, not only does SB 9 level the playing field for New Mexico businesses, this year's legislation lowers the corporate tax rate.


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