1.) Taxation
2) Economic Development
3) Procurement Transparency

The topics below are based on three of our current NAWBO Public Policy positions.

1) Taxation
NAWBO supports a more business friendly tax policy that encourages small businesses growth resulting in greater sales, increased state revenues and increased employment.

Although we continue to believe that our tax system is overly burdensome on small and medium-sized business and is overdue for an overhaul, legislative corrections to gross receipts tax pyramiding must be immediately continued and effectively expanded.

Background: Since many small businesses are taxed as individuals, personal tax rates, property taxes and other business taxes often called fees have substantial impact on these businesses. Nevertheless, it is gross receipts tax (GRT) on business to business transactions, commonly referred to “pyramiding” that affects almost all small businesses. What was once a low rate broadly based tax, has become a high rate targeted tax.

NAWBO recommends:
• the legislature continue to address the gross receipts tax rate and “pyramiding” issue.  It is important to assist small business through the elimination of GRT on business to business transactions such as legal services, accounting, multi-tiered subcontracting and other related services.
• the appointment of a task force comprised of business owners as well as other business leaders, representing all sizes of employers, together with tax policy experts to propose a tax code appropriate for our state’s revenue requirements. Its final report should include best practices from other states.

2) Economic Development
NAWBO supports establishing a “post-performance incentive” that offers businesses a rebate of up to 30% of the new taxable revenues they create when they relocate to or expand operations in New Mexico creating new jobs and new state revenues.

Background: New Mexico must gain ground in increasing the private sector economy. Incentives are important in today’s competitive business recruitment environment. However, these incentives should be structured so that we are investing not giving away revenues. A “post-performance incentive” tied to actual job creation is a balanced and reasonable solution.

NAWBO recommends:
• the legislature consider “post-performance incentive” legislation during the 2014 legislative session

3) Procurement Transparency
NAWBO supports a transparent state procurement structure that requires prime contractors that name local subcontractors in a bid or request for proposal use the local subcontractors in the performance of the contract work unless the state can demonstrate that the local subcontractor is unqualified.

Background: Recent rounds of bidding for services required by the New Mexico Health Insurance Exchange have brought to light the problem as potential “named” subcontractors ultimately were not retained to perform work once the contract was finalized.

NAWBO recommends:
• the legislature address the issue of procurement transparency and protections for subcontractors not otherwise covered by state law.


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