Senate Concedes to House Amendments on Tax Bill After Debate Over Pay Increase

The New Mexico Senate on Wednesday voted to concur with House amendments to Senate Bill 151, approving changes that remove gross‑receipts tax on certain medical supplies, add a 1% salary increase for state employees and extend the high‑wage job tax credit to July 2036, supporters said.

Senator Carrie Hamlin, explaining the House Tax and Revenue Committee amendment, said the House changed language on the local news credit, dropped the GRT on medical supplies and added the 1% pay increase for state employees, higher education institutions and public schools. She said the high‑wage job tax credit’s sunset would be extended from its prior end date of July 1, 2026, to July 2036 and that other provisions would include sunsets consistent with discussion.

Opponents on the floor argued the pay provision altered the bill’s character. “When they added the 1% to state employees’ pay, I believe they completely changed the entire bill from a tax package to an appropriations bill,” said Senator Sher, who urged the Senate not to concur and suggested a conference committee instead. Sher said the change could render the measure unconstitutional and expose the state to legal defense costs.

Hamlin described the change as a “friendly amendment” and urged colleagues to approve it. After debate, senators recorded votes by a show of hands; the chair announced a live tally of 22 in the affirmative and 14 in the negative. “The Senate has concurred with the House amendments,” the presiding officer said, noting Senate Bill 151 is now twice amended.

What passed: concurrence with House amendments to Senate Bill 151, as explained on the floor, including removal of the GRT on certain medical supplies, a 1% salary increase for specified public employees, an extension of the high‑wage job tax credit to July 2036, and sunset provisions.

Next steps: Senate Bill 151 will proceed as twice amended following the Senate’s concurrence with the House amendments.