New Mexico trucking companies with two or more trucks and businesses that pay more than $20,000 a month in Combined Reporting System (CRS) taxes are now required to file their taxes online, the New Mexico Taxation and Revenue Department said.
The electronic filing can be done through a new Web site the tax department is offering. To find it, go online and click on the Online Services button, which will lead to a tutorial called “How to E-File Your CRS Tax.”
The affected companies are required to start filing their CRS taxes online by August 25 for the July 2010 tax period. The weight and distance taxes must be filed online by October 31 of this year. All other monthly filers will be phased in over the next year.
The requirement was brought about by 1995 legislation that authorized the department to require electronic filing. The department didn’t have the systems in place to do that until recently, it said.
Tax and Revenue Secretary Designate Duffy Rodriguez said that e-filing is “easy, fast, reliable and convenient.”
The department has launched a new campaign called E-file in Style to alert more than 146,000 monthly tax filers to the requirement to file online.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.
Showing posts with label Sales Taxes. Show all posts
Showing posts with label Sales Taxes. Show all posts
Wednesday, July 21, 2010
Sunday, February 7, 2010
New Mexico House OKs tax hikes to balance budget
Upper-income New Mexicans could pay a surtax to help balance the state's budget and others will pay higher sales taxes on goods and services under measures approved Friday by the House.
The proposals were part of a tax package providing $400 million next year to shore up state finances. If enacted, the measures would become the largest tax increase package in more than 20 years.
House Speaker Ben Lujan, a Santa Fe Democrat, said tax increases were necessary to prevent damaging cutbacks in public schools and government services, such as health care for the needy.
"We don't take pride or joy in increasing taxes," Lujan said.
However, Republicans said the budget should be cut more before taxes are increased. State spending has increased by 35 percent since 2003, even after budget cuts during the past two years.
"We can't tax our way to prosperity," said Rep. Donald Bratton, R-Hobbs.
Spending from the state's main budget account has been trimmed by $700 million during the past two years as the economy and state revenues slumped, according to Lujan. However, part of those cuts has been offset by using federal economic stimulus money to pay for state programs, mainly education and health care. As we all know the education systems across the state have cut their programs, sporting schedules and the teachers’ salaries are some of the lowest in the country.
Approved by the House were measures to:
-- Increase the gross receipts tax by a half cent starting in July -- from 5 percent to 5.5 percent -- and phase out the higher rate in 2014. The proposal would generate $238 million next year. The bill passed 34-32.
-- Impose 1.5 percent surtax on upper-income New Mexicans for three years. Married couples would pay the surtax on taxable income of more than $200,000 if they file joint returns. Single taxpayers would pay the surtax on income of more than $133,000. The surtax would provide $67 million next year. The bill passed 36-32.
-- Improve income tax compliance by out-of-state residents. The measure will expand tax withholding requirements on partnerships and certain small corporations. Lawmakers expect to collect nearly $16 million next year. Supporters of the bill contend the measure was not a tax increase. The measure was approved 42-25.
Also under consideration is a measure to generate $90 million by eliminating an income tax deduction for some taxpayers.
Besides tax bills, the House was to debate a budget blueprint that allocates more than $5.6 billion for public education and general government programs in the 2011 fiscal year, which starts in July. The budget factors in new revenues from tax increases and would trim spending by 1.4 percent.
According to the Legislative Council Service, one of the largest tax packages in New Mexico history came in 1986 when income, gross receipts and other taxes were raised by $150 million -- representing nearly 11 percent of the state budget then.
How many of our state legislators have voted themselves a pay increase when the majority of our citizens live on half of what they make as a salary? I think they should cut their pay increases for one year and apply it to part of the state’s budget crisis then they would be one step closer in dealing with living in our economy now.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.
The proposals were part of a tax package providing $400 million next year to shore up state finances. If enacted, the measures would become the largest tax increase package in more than 20 years.
House Speaker Ben Lujan, a Santa Fe Democrat, said tax increases were necessary to prevent damaging cutbacks in public schools and government services, such as health care for the needy.
"We don't take pride or joy in increasing taxes," Lujan said.
However, Republicans said the budget should be cut more before taxes are increased. State spending has increased by 35 percent since 2003, even after budget cuts during the past two years.
"We can't tax our way to prosperity," said Rep. Donald Bratton, R-Hobbs.
Spending from the state's main budget account has been trimmed by $700 million during the past two years as the economy and state revenues slumped, according to Lujan. However, part of those cuts has been offset by using federal economic stimulus money to pay for state programs, mainly education and health care. As we all know the education systems across the state have cut their programs, sporting schedules and the teachers’ salaries are some of the lowest in the country.
Approved by the House were measures to:
-- Increase the gross receipts tax by a half cent starting in July -- from 5 percent to 5.5 percent -- and phase out the higher rate in 2014. The proposal would generate $238 million next year. The bill passed 34-32.
-- Impose 1.5 percent surtax on upper-income New Mexicans for three years. Married couples would pay the surtax on taxable income of more than $200,000 if they file joint returns. Single taxpayers would pay the surtax on income of more than $133,000. The surtax would provide $67 million next year. The bill passed 36-32.
-- Improve income tax compliance by out-of-state residents. The measure will expand tax withholding requirements on partnerships and certain small corporations. Lawmakers expect to collect nearly $16 million next year. Supporters of the bill contend the measure was not a tax increase. The measure was approved 42-25.
Also under consideration is a measure to generate $90 million by eliminating an income tax deduction for some taxpayers.
Besides tax bills, the House was to debate a budget blueprint that allocates more than $5.6 billion for public education and general government programs in the 2011 fiscal year, which starts in July. The budget factors in new revenues from tax increases and would trim spending by 1.4 percent.
According to the Legislative Council Service, one of the largest tax packages in New Mexico history came in 1986 when income, gross receipts and other taxes were raised by $150 million -- representing nearly 11 percent of the state budget then.
How many of our state legislators have voted themselves a pay increase when the majority of our citizens live on half of what they make as a salary? I think they should cut their pay increases for one year and apply it to part of the state’s budget crisis then they would be one step closer in dealing with living in our economy now.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.
Thursday, December 31, 2009
The government is making frantic attempts to roll out a comprehensive goods and services tax
What is Goods and Services Tax?
The Goods and Services Tax (GST) is a tax we have to pay every time we buy goods or services. In this system, the consumer pays the final tax but an efficient input tax credit system ensures that there is no cascading of taxes — tax on tax paid on inputs that go into manufacture of goods. Put simply, GST is levied only on the value-added at every stage of production. The price of any input going into production will have a cost and a tax component. The system ensure that when the final tax is calculated, the tax paid on input is taken out and the tax is levied only on the cost of the good produced. It is therefore, also known as value added tax in some countries and trade blocks.
Why is it considered a better system than the current one?
Currently there are a multiple of indirect taxes -- central taxes such as excise duty, service tax, countervailing duty, special additional duty on customs, all cesses and surcharges and state taxes including value added tax(VAT), sales tax, entertainment tax, luxury tax, tax on lottery, betting and gambling, entry tax and state cesses and surcharges. This would cause an effective tax rate to be high and the differences across states fragments the national market along state boundaries. GST will replace all these taxes with a simple levy, lowering effective tax on goods and creating a national market in goods and services.
What is the GST model India plans to adopt?
Most countries have a unified GST system. India, however, has opted for a dual GST system prevalent in Brazil and Canada. Under the dual GST model, both the centre and states, have the right to levy and collect tax on the sale of goods. Consultations are on between the centre and the state government through the empowered committee of state finance ministers to finalize the detailed structural framework of the tax.
What will be the GST rate?
There is no decision yet on the rate structure of GST. A task force set up by the Thirteenth Finance Commission that gave its report recently recommended a rate of 12%. States, however, have said they will not settle for a rate less than 15%. Internal studies carried out by the centre and various states point to rate of 14-16%. At present, the talks have veered around to the view that there should be two slabs-- one lower or floor rate for essential items and another higher or effective rate for most items. There will also be an exempted list of items and a lower rate of 1% for precious metals such as gold, platinum, silver.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
The Goods and Services Tax (GST) is a tax we have to pay every time we buy goods or services. In this system, the consumer pays the final tax but an efficient input tax credit system ensures that there is no cascading of taxes — tax on tax paid on inputs that go into manufacture of goods. Put simply, GST is levied only on the value-added at every stage of production. The price of any input going into production will have a cost and a tax component. The system ensure that when the final tax is calculated, the tax paid on input is taken out and the tax is levied only on the cost of the good produced. It is therefore, also known as value added tax in some countries and trade blocks.
Why is it considered a better system than the current one?
Currently there are a multiple of indirect taxes -- central taxes such as excise duty, service tax, countervailing duty, special additional duty on customs, all cesses and surcharges and state taxes including value added tax(VAT), sales tax, entertainment tax, luxury tax, tax on lottery, betting and gambling, entry tax and state cesses and surcharges. This would cause an effective tax rate to be high and the differences across states fragments the national market along state boundaries. GST will replace all these taxes with a simple levy, lowering effective tax on goods and creating a national market in goods and services.
What is the GST model India plans to adopt?
Most countries have a unified GST system. India, however, has opted for a dual GST system prevalent in Brazil and Canada. Under the dual GST model, both the centre and states, have the right to levy and collect tax on the sale of goods. Consultations are on between the centre and the state government through the empowered committee of state finance ministers to finalize the detailed structural framework of the tax.
What will be the GST rate?
There is no decision yet on the rate structure of GST. A task force set up by the Thirteenth Finance Commission that gave its report recently recommended a rate of 12%. States, however, have said they will not settle for a rate less than 15%. Internal studies carried out by the centre and various states point to rate of 14-16%. At present, the talks have veered around to the view that there should be two slabs-- one lower or floor rate for essential items and another higher or effective rate for most items. There will also be an exempted list of items and a lower rate of 1% for precious metals such as gold, platinum, silver.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
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