NM Corporate Tax Cut May Increase Your Taxes

Corporations will benefit from tax cuts, but cities and counties may be forced to increase taxes in coming years because of an economic development package approved by the Legislature.  The tax proposals will cost the state about $56 million in reduced revenue in 2017.

Republican Gov. Susana Martinez said Saturday she'll sign the tax measure into law. She downplays the possibility that consumers will end up paying more for goods and services because of one provision in the legislation.

She said the tax bill was crucial for diversifying New Mexico's economy and bringing higher paying jobs to the state

The measure will lower corporate income tax rates, but gives cities and counties the ability to raise taxes to offset revenue the state plans to divert over 15 years.

Copyright 2013 The Associated Press.