Governor Susana Martinez announced today that she has issued an executive order requiring the preparation of an annual tax expenditure budget by executive branch agencies. The tax expenditure budget will be a thorough and comprehensive review of all state tax credits in order to evaluate the impact of those credits on job creation and economic development. Currently, the state does not have a standardized system of analyzing these expenditures and determining whether they meet their intended objectives.
"These challenging economic times require vigilance on the part of state government in order to preserve vital services and avoid wasteful use of New Mexicans' hard-earned tax dollars," said Governor Martinez. "A thorough account of the state's tax system will give us a better idea of what works, what doesn't, and what we need to change in order to encourage greater job creation and economic growth through our tax structure."
The annual review will be led by the Taxation and Revenue Department with assistance from the Department of Finance and Administration, the Economic Development Department, the Energy, Minerals and Natural Resources Department, the Environment Department, the Department of Health, and other relevant agencies.