SANTA FE, N.M. (AP) — A multibillion-dollar surplus due to a surge in oil income will allow New Mexico to send rebates to eligible taxpayers as the state moves to return more than $673 million to residents’ pockets, Gov. Michelle Lujan Grisham announced Friday.
The Taxation and Revenue Department says any New Mexico resident who filed a 2021 state tax return and was not declared as a dependent on someone else's return will receive their rebates automatically starting in June.
Taxpayers who received a refund by direct deposit on their 2021 return will have the rebate deposited into their bank account. Everyone else will get a check in the mail. Single filers will get $500, while married couples filing jointly will get $1,000.
Lujan Grisham noted that prices remain high in a state with elevated poverty rates and low workforce participation, but said New Mexico "is in a fantastic financial position.”
Surging oil prices and output have created an estimated $3.6 billion annual surplus over budgeted spending for the coming fiscal year.
While supporting the rebates, the Democratic governor earlier this month scaled down a tax relief package backed by Democratic-led Legislature that she worried could hurt government spending on public education, heath care and law enforcement.
New Mexico residents have until May 31, 2024, to file a 2021 return and still qualify for the rebates. Those who don't have to file a state tax return because of their income can apply for relief payments on a first-come, first-served basis through the state's Human Services Department.