How Albuquerque is winning the hearts and minds of over-taxed executives and their companies.
Albuquerque Economic Development, Inc. and several of its partners pooled resources to develop this eight page special section that appears within the July issue of Site Selection magazine. The marketing piece promotes the important tax changes adopted by Governor Susana Martinez and the New Mexico Legislature earlier this year. Click here to view the special section. The printed and online total circulation of Site Selection is 57,000+ readers, and it reaches site selection professionals and companies considering location decisions.
Read an excerpt below:
A SITE SELECTION INVESTMENT PROFILE: ALBUQUERQUE, NEW MEXICO
Few things get companies as excited as waving goodbye to corporate taxes.
On March 16, New Mexico Gov.Susana Martinez signed House Bill 641 into law, resulting in what many believe is the most important improvement to the state’s tax climate in its 101 year history.
Generally, when the conversation turns to house bills and tax law, normal human beings tend to doze off. But hang in there.
The news from Albuquerque is actually exciting — especially when phrased in terms of how this legislation affects you, the corporate investor, and your site location plans.
First, the new tax package allows manufacturers the option of electing the single sales factor in computing corporate income taxes. Moving to a single sales factor means that companies may now elect to be taxed only on sales to customers in New Mexico. That will effectively eliminate corporate income taxes for most manufacturers.
The legislature also approved a 22 percent reduction in the top corporate income tax rate, to be lowered to 5.9 percent over the next five years.
And completing the business climate trifecta in this legislative session, leaders also eliminated what was known as the Throwback Rule, ensuring that manufacturers who sell products into states where they don’t have nexus will not face any tax penalty.
This package follows tax relief enacted last year that phases in the complete elimination of gross receipts (sales) taxes on electricity and other consumables used in the manufacturing process.
With these bold moves and New Mexico’s incentives, the state has upped the ante to win more corporate investment. When phased-in, New Mexico will offer manufacturers the lowest effective tax rate (2 percent) in the Western U.S., according to a major study by one of the Big 4 accounting firms.
New Mexico’s communities, including Albuquerque, stand poised to reap the benefits…Continue reading source article
(Site Selection Magazine)
