SANTA FE, N.M. (AP) - The Senate has approved a package of tax increases to provide about $200 million to help balance the state budget next year.
The legislation is a part of a potential budget-balancing compromise by lawmakers who hope to wrap up a special session on Wednesday.
The Senate approved the tax measure Tuesday night on a 25-to-15 vote. The measure includes a one-eighth increase in the gross receipts tax on goods and services. It also will reinstate part of the tax on food and eliminate an income tax deduction for some New Mexicans.
The state levies a 5 percent gross receipts tax. Cities and counties impose additional levies.
In the House, lawmakers debated a proposed 75-cents-a-pack increase in the cigarette tax.
(Copyright 2010 by The Associated Press. All Rights Reserved.)
