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Committee tables HB179 to extend Small Business Saturday GRT deduction; sponsors and chamber urge extension
Summary
House Bill 179, which would extend the Gross Receipts Tax (GRT) deduction for small-business ‘Small Business Saturday’ transactions, was tabled after sponsors and the Greater Albuquerque Chamber of Commerce urged renewal and committee members asked about local fiscal impacts and eligibility rules.
Chairwoman in Gallegos and co-sponsor Representative Herndon reintroduced House Bill 179, proposing to extend the Saturday-after-Thanksgiving GRT deduction for small businesses.
The sponsors said the measure — first enacted in February 2018 — allows qualifying small businesses to deduct retail sales up to $500 on the Saturday after Thanksgiving. The bill targets small businesses “with 10 employees or fewer whose primary place of business is in New Mexico,” as described by the sponsor, and would extend the program for an additional five years past its scheduled sunset.
Why it matters: Supporters said a brief tax holiday helps local merchants compete with national chains during the busiest shopping weekend of the year and keeps more consumer dollars in local communities. Enrique Nel of the Greater Albuquerque Chamber of Commerce told the committee the policy keeps money in local economies: “Out of $100 spent, $68 stays in our community if you shop local.” The chamber urged a do-pass recommendation.
Committee discussion and fiscal context: Representative Montoya supported the extension while cautioning that the deduction reduces revenue available to local governments and that the program’s cost has grown in recent years. Representative Duncan asked detailed questions about how a business qualifies for the deduction and how the Taxation & Revenue Department confirms employee counts; the sponsor explained that TRD uses wage reporting (W-2s) and other employer data to determine eligibility. Committee members also reviewed the Fiscal Impact Report (FIR) that shows a recurring fiscal cost; staff and the Legislative Finance Committee economist explained why extending a sunset can appear as a new cost in the current budgetary materials.
Action: Vice Chair Cadena moved to table HB179; Representative Duncan seconded. The motion to table was recorded in the transcript and the bill was tabled pending possible inclusion in the session’s tax package. No roll-call vote was recorded in the provided transcript.
Clarifications and next steps: Committee members asked staff to continue coordinating fiscal analysis and noted local officials may raise concerns about lost local revenue. The sponsors indicated they would work with the committee and the tax-package process to seek inclusion.
