Frenzied tax package wraps Legislature

SANTA FE (KRQE) - The 60-day legislative session ended with a last-second compromise Saturday that can only be called a buzzer beater.

The governor had been saying all week she'd veto the budget, which would mean a costly special session for tax-payers.

Not any more.

Key to the deal was a massive tax-reform package approved literally in the closing minutes and seconds before the noon deadline to adjourn.

It might be fitting that the governor and lawmakers flipped the script of the 2013 session through a bill originally meant to boost Hollywood.

On Friday Gov. Susana Martinez hinted she wanted comprehensive tax reform as she vetoed what became known as the "Breaking Bad" bill, which enhances film credits the state doles out for TV series produced in the state.

The on Friday night the powerful Senate Finance Committee slapped together the framework of just such a deal, which includes a corporate tax cut while closing a loophole for "big box" retailers. It also included a single sales factor for manufacturing companies, a narrower version of what Governor Martinez had proposed.

It was unclear if it would go anywhere until about 45 minutes before the session ended when the Senate amended a new version of the Breaking Bad bill to add the massive tax package, a 35-page bill.

A little before 11:30 the deal cleared the Senate.

The House took it up immediately, and despite resistance from some fellow Democrats, House Speaker Ken Martinez, D-Grants, got the bill passed seconds before or seconds after the clock struck noon depending on who you ask.

"It's a great day for New Mexico because it's jobs, it's economic development, we came together, we listened to one another," Rep. Moe Maestas, D-Albuquerque said.

"I t came down to literally the last few seconds but this was an important victory for all of  New Mexico," Gov. Martinez said, who claims the package makes New Mexico more competitive with other states.

18 representatives voted against the bill, with some upset about the last-second nature of how it was passed.

"I believe this was a royal screw job to do this to us after noon, without any discussion, at the very last minute," Rep. Mimi Stewart, D-Albuquerque, said.

That tax package phases out over 17 years reimbursements local governments get from the state for not charging a tax on food and medical services, estimated by a fiscal impact report at $140 million for the current fiscal year.

However it gives them the option of raising local taxes on everything but food and medical services to try to make up for any shortfall.

This tax deal has also changed the governor's mind on the budget lawmakers sent her earlier this week.

She'd been threatening to veto it.  Now she says she'll sign it.