New Mexico Enacts COVID-19 Tax Relief Bill

Effective June 29, 2020, New Mexico Gov. Michelle Lujan Grisham enacted legislation that provides tax relief during the COVID-19 pandemic. The legislation provides a temporary waiver of penalties and interest on certain tax liabilities due in 2020. Per the legislation, no interest or penalties will be assessed to taxpayers for:

• Gross receipts tax, local option gross receipts tax or compensating tax liabilities for failure to pay any of those taxes that became due March 25, 2020 through July 25, 2020, provided that the failure to pay the tax was made without intent to evade or defeat the tax. Payment for the unpaid taxes must be made in full by April 25, 2021.
• Tax liabilities pursuant to the Income Tax Act or the Corporate Income and Franchise Tax Act for failure to pay the tax that became due April 15, 2020 through July 15, 2020, provided that the failure to pay the tax was made without intent to evade or defeat the tax.  Payment must be made in full by April 15, 2021.
• Tax liabilities pursuant to the Withholding Tax Act for failure to pay the tax that became due March 25, 2020 through July 25, 2020, provided that the failure to pay the tax was made without intent to evade or defeat the tax.  Payment must be made in full by April 15, 2021.
• Tax liabilities assessed between September 3, 2019 and January 3, 2020 as the result of a managed audit, provided that payment for those liabilities is made pursuant to terms of the managed audit agreement on or before December 31, 2020.

Additionally, no interest shall accrue and no penalty shall be assessed to a property owner for unpaid property taxes that became due April 10, 2020 provided that:

• The unpaid property taxes did not become delinquent because of an intent to defraud by the property owner;
• Payment for the unpaid property taxes is made in full on or before May 10, 2021; and
• The property does not have property taxes that became delinquent prior to May 10, 2020.

(H.B. 6, Laws 2020, First Special Session, effective June 29, 2020)