New Mexico’s Harmful Gross Receipts Tax: A Warning to Other States

New Mexico is an unfortunate trendsetter. Although as a state we are often overlooked (some geographically-ignorant people have been known to lump us in with Old Mexico), when it comes to broad-based taxation and the taxing of services, The Land of Enchantment is quickly becoming a rather dubious model for other states. Some states like Ohio and Texas have recently enacted such taxes at relatively low rates (effectively less than one-half of one percent), but New Mexico has had a broad-based taxation mechanism for more than 40 years.