© 2024 KRWG
News that Matters.
Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations

Bill Eliminating Tax on Social Security Income Loses Momentum

SANTA FE, N.M. (AP) — A bill to do away with New Mexico’s tax on Social Security income for middle- and upper-income residents has faltered at an initial public hearing, highlighting reluctance among many Democratic legislators.

The state already exempts low-income beneficiaries from the tax. A state House panel declined Tuesday to endorse legislation that would gradually eliminate the tax by 2026, on a tie 4-4 vote with Democrats in opposition.

Democratic Gov. Michelle Lujan Grisham endorsed a Social Security tax cut earlier this month in her State of the State speech, with several bills pending. Eliminating income tax on Social Security benefits would reduce annual general fund revenues by as much as $160 million.