Pia Roca

Pet Food Tax Hike Advances in New Mexico Legislature

Share on Facebook
Tweet this Story
Pin this Image

Posted by Pia Roca on Wednesday, February 7th, 2018, 3:44 PM PERMALINK

The New Mexico Legislature is trying to impose a tax on pet food that would burden pet owners and families throughout the state. Americans for Tax Reform adamantly opposes the bill.

Last month New Mexico Reps. Carl Trujillo (D-46) and Debbie Rodella (D-41) introduced House Bill 64, the pet food tax. In a recent article for Forbes, ATR’s Patrick Gleason explains how House Bill 64 would work if passed:

“Reps. Trujillo & Rodella’s proposal would impose a new $100 tax on top of the state’s existing commercial pet food tax (in summary, it would be a new pet food tax that is 50 times greater than the state’s existing pet food tax, just piled on top). Money from the proposed dog food tax hike would be put toward spaying and neutering dogs and cats.”

HB 64 was unanimously supported by the House Consumer and Public Affairs Committee on January 30th. Last year, Trujillo proposed a similar bill that failed to gain support in the legislature as the Senate finance committee stalled the vote. Robert Likins, vice president of governmental affairs for the Pet Industry Joint Advisory Council, explains why the pet food tax is a misguided proposal that should be rejected by New Mexico lawmakers: ​

“Spay and neuter services are already available throughout the state from multimillion-dollar animal welfare organizations for as little as $10,” he said. “The full House should reject this unwise, expensive bill that adds fees on the backs of all pet stores and pet owners to pay for services that are already being provided.”

Laura Moore, owner of The Critters and Me pet store in Santa Fe explains how the proposed pet food tax hike, if approved, would negatively affect both consumers and employers:​

“This is either going to increase the price of dog and cat food or manufacturers are going to want to stop supplying these foods to New Mexico,” Moore said. “There has to be a better way to facilitate spay and neuter services than having bureaucrats get involved in it.”

Senator Gay Kernan (Hobbs-R) has introduced companion pet food tax hike legislation, Senate Bill 51, in her chamber. That bill is currently pending in the Senate Finance Committee. Americans for Tax Reform is urging Senate Finance Committee members to put down this misguided tax hike when it comes up for consideration. New Mexico taxpayers have been hit with 20 federal Obamacare tax increases over the last eight years. The last thing they need is to have lawmakers in Santa Fe pile on with further tax hikes at the state level. 

Photo Credit: Tanay Mondal

More from Americans for Tax Reform

Local Breweries raise a glass to Federal Tax Reform

Share on Facebook
Tweet this Story
Pin this Image

Posted by Pia Roca on Monday, February 5th, 2018, 2:02 PM PERMALINK

Craft beer makers are raising a glass to the passage of the Tax Cuts and Jobs Act.

In addition to lowering income tax rates for individuals, families, and employers, the Tax Cuts & Jobs Act that President Trump signed into law in December also lowered the federal excise tax by half for breweries making less than 2 million barrels per year, a category in which most small U.S. breweries fall under.

For the first 60,000 barrels, craft breweries will pay $3.50 per barrel instead of $7—a 50% rate reduction that could create an additional $320 million in growth, according to industry estimates. This tax relief is expected to give a boost to an industry that has been a major growth sector in recent years. Between 2012 and 2016 alone the number of breweries in the U.S. doubled by about 2,800, citing a 16% increase in an industry that provides more than 2.2 million jobs.

Jim McGreevy, President and CEO of The Beer Institute, lauded the passage of the tax reform and the boost that a reduced excise tax rate will provide to the economy:

“The Tax Cut and Jobs Act will provide critical federal excise tax relief for brewers and beer importers of all sizes and will enable America’s more than 5,000 breweries to add to the American economy through technology, innovation and jobs. We thank the more than 300 members of the House of Representatives and 55 members of the Senate who supported the Craft Beverage Modernization and Tax Reform Act.”

Tiffany Puza, operations manager of the Bad Lab Beer Company in New Hampshire explains how she plans to use the new tax savings to expand their marketing strategies and bring in new business:

“This tax break will let us build our first marketing budget. Before it, really every dollar we spent was going towards our product and keeping our doors open. Crucial items like six-pack carriers, labels, bottles, caps all need to be designed and they have very high minimum costs. Our prediction is we will double our output in the next year, so we’re going to have to work extremely hard to get our name out there to meet those numbers.”

Nicole Carrier, owner of Throwback Brewery in North Hampton, New Hampshire, also plans to reinvest tax savings into expansion of his business:

We’re definitely going to use this money for more infrastructure here. Any time the government decides to side with small businesses and gives them extra capital to use, it’s an enormous help.”

In a similar manner, John Buetel from Keg Creek Brewing in Iowa said tax reform would save the brewery over $5,200 in 2018. Across the nation, the Tax Cuts & Jobs Act encourages the economic growth of local breweries by allowing them to keep their savings and expand their businesses.

Photo Credit: Wikipedia Commons

More from Americans for Tax Reform