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Senators propose $500 per-person tax rebate over seven years; committee hears but holds measure
Summary
Senators introduced a proposal to send $500 per resident per year for seven years, financed from permanent funds; sponsors said the plan would return surplus revenue to New Mexicans, but the committee held the bill for further study.
Senators Thornton and co-sponsor Jay Block presented Senate Bill 398 to the Tax, Business and Transportation Committee, proposing a $500 refundable rebate for each New Mexico resident annually for seven years.
Senator Thornton described the proposal as a one-time recurring rebate intended to return a portion of the state’s resource and permanent-fund gains to residents. "This would be eligible for every New Mexican citizen," Thornton said, explaining the rebate would be available to individuals who file a state income-tax return and are not claimed as dependents.
Sponsors cited the state’s large permanent-fund balances and recent investment returns as the funding source. During the hearing, sponsors cited figures for permanent funds and annual additions—numbers they described as the basis for their estimate that the state could support roughly $1 billion in rebates annually without reducing other obligations.
Committee members raised legal and budgetary questions. Senator Jaramillo asked whether a refundable tax-credit structure could run afoul of the constitutional anti-donation clause; sponsors responded that they had analyzed the issue and believed the design would not violate the clause. Other members urged that early, front-end budget planning would be preferable to adding the rebate late in the session.
No vote was taken; the committee held the bill for further study and signaled that sponsors and members intend to continue work in the interim. Supporters and several witnesses framed the proposal as a way to help families cover groceries, utilities and other household costs; opponents or fiscal-skeptical members urged detailed budgeting and consideration of trade-offs with other programs.
