New Mexico’s Bold Move: $1,500 Tax Rebates to Married Couples Amidst Rising Prices

The New Mexico state legislature is advancing a bill that aims to provide tax rebates to residents of the state. Senate Bill 10, sponsored by several Democratic legislators, is designed to help alleviate the financial pressures faced by many people due to rising prices. If passed, according to KRQE News on February 3, 2023, the bill would provide rebates of $750 to single tax filers and $1,500 to married individuals filing joint returns, heads of households, and surviving spouses. The rebates would be based on 2021 returns rather than 2022 returns to make processing faster.

The funds would be distributed to New Mexicans after the bill passes through several rounds of debate at the Roundhouse. The Senate Tax, Business, and Transportation Committee discussed the bill and recognized the importance of rebates, especially with rising food prices and upcoming reductions in SNAP benefits for some New Mexicans.

Although there is support for rebates, some concerns were raised about the dollar amount and whether they should be needs-based. The Secretary of the Taxation and Revenue Department said that an income cutoff is unlikely to impact the state’s fiscal bottom line. Last year, some people reported not receiving their rebates, but most have been sent out, with a few being held up due to filing issues.

The committee approved the bill, and it will move on to the next round of debate. If passed, New Mexicans could receive rebates soon. Direct deposits could be sent out in 6–8 weeks. Governor Lujan Grisham is likely to approve the rebates if they make it through the legislative process.