A new tax relief bill (House Bill 6) signed June 29 by Governor Michelle Lujan Grisham provides New Mexico taxpayers with a temporary break on the interest and penalties they would normally owe on unpaid taxes. The legislation aims to help struggling individuals and businesses deal with the financial strain caused by the coronavirus pandemic, by extending tax payment deadlines until at least April 15, 2021 and sparing them additional debt.
The payment extensions cover personal income tax, corporate income tax, withholding tax, and Gross Receipts Tax (GRT). Property tax payment deadlines were also extended until May 10, 2021. Taxpayers must still file their tax returns on the current schedule, which is July 15, 2020. Tax bills must be paid in full by the 2021 deadlines to avoid penalties.
â€œThe financial pain caused by COVID-19 is real. This bill will help New Mexicans who, through no fault of their own, were unable to pay their taxes on time,â€ said Governor Lujan Grisham.
The second part of the legislation increased the share of internet sales tax revenue collected by the state and distributed to cities and counties, also hard hit by COVID-19. These payments will double from $24 million to $48 million annually during the coming budget year. The distributions will be divided among counties and municipalities based on population.
Finally, the legislation exempts federal CARES Act payments to certain New Mexico health care providers from GRT so that more funding goes directly to healthcare services for New Mexicans in need.
Click here for more details from the NM Taxation & Revenue Department. If you have questions about your personal or business taxes or payment extensions, please contact James Ortiz, who leads REDWâ€™s State and Local Tax (SALT) practice.
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