New Mexico Economic Development and Revenue Strategy
Other Taxes Would Need to Grow at Unprecedented Rates to Close Gaps
Other than revenue from the oil and gas sector, New Mexico primarily relies on GRT and
PIT collections. Without changes to the State's overall tax structure and economy, there
would need to be unprecedented growth in both to offset potential revenue gaps. Over the
15-year period examined by PFM:
•
.
Gross Receipts Tax (GRT) aggregate collections by FY2037 would need to increase
more than 60 percent over what the historical growth rate would predict to cover the
revenue gap from the PFM scenario outlined earlier, at $95.7 billion over the projection
period versus a baseline of $59.4 billion using the historical growth rate of the GRT.
Personal Income Tax (PIT) aggregate collections by FY2037 would need to increase by
more than double to fill the same revenue gap - $71.4 billion over the projection period
versus a baseline of $35.0 billion using the historical growth rate of the PIT.
• Under a combined scenario, aggregate GRT and PIT collections would need to increase
by nearly 40 percent over the amount predicted by historical growth rates.
© PFM
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