Summary:

 House Bill 179 (HB 179) extends the sunset date for the Gross Receipts Tax deduction applied to retail sales made by certain small businesses on the first Saturday after Thanksgiving, also known as Small Business Saturday. The bill moves the expiration date from July 1, 2025, to July 1, 2030. 

Legislation Overview:

 House Bill 179 (HB 179) proposes amending Section 7-9-116 NMSA 1978 to continue allowing eligible businesses to deduct gross receipts from sales made on Small Business Saturday. To qualify, businesses must have their primary location in New Mexico and have employed no more than ten workers at any given time during the previous fiscal year. The deduction applies to sales of tangible goods priced under $500, including clothing, books, electronics, home goods, and various other categories.

Fiscal Implications

The extension of the deduction will reduce state and local tax revenue by an undetermined amount each year through 2030. While this policy aims to support small businesses by encouraging consumer spending, it may result in continued revenue losses for municipalities that rely on gross receipts tax collections. The long-term impact depends on consumer participation and the extent to which businesses take advantage of the deduction. 

Current Law:

 The existing tax deduction is set to expire on July 1, 2025. Without HB 179, businesses would lose the ability to deduct qualifying sales from gross receipts, potentially increasing their tax liabilities and affecting consumer incentives for Small Business Saturday shopping.