How Do We Compare?

New Mexico Business Journal, Oct, 2001

"When compared with Arizona, California, Colorado, Oklahoma and Texas, New Mexico's tax system is competitive at the personal and business levels. This comparison includes all taxes paid directly by households and businesses: gross receipts and sales, other excise, severance, income and property taxes.

This does not mean there is not room for improvement. New Mexico's taxes on low and middle-income households are average. California and Colorado generally had lower taxes on these brackets than New Mexico, while Arizona, Oklahoma, Texas and Utah imposed higher tax burdens on low and middle-income taxpayers...As a percentage of per capita income, the burden (state and local taxes combined) on New Mexicans is higher than citizens of surrounding states. The reason is that New Mexico's taxes take a larger percentage of its citizens' incomes because 48 percent of the state's residents make less than $20,000 a year. New Mexico collects the second highest (in dollars) amount of taxes of any of the surrounding states. ..Among these states, New Mexico's taxes on non-extractive business corporations were the lowest Taxes on extractive industries are mixed with New Mexico placing a heavier burden overall than comparable states.