SANTA FE — Buoyed by an oil and gas revenue boom, New Mexico is preparing to share some of its extra cash with taxpayers, starting next week.
Two state agencies — the Taxation and Revenue and Human Services departments — expect to deliver about $705 million this year in rebates and economic relief payments.
The money is part of the spending and tax package authorized by Gov. Michelle Lujan Grisham and the state Legislature this year.
Residents who filed a 2021 personal income tax return are set to receive either $500 for an individual, or $1,000 for a couple filing jointly.
Taxpayers who receive refunds through direct deposit should get the money about June 21, or the middle of next week.
Other taxpayers will have their checks mailed to them as fast they can be printed and mailed over a 10-day period — from June 20 to June 29.
A taxpayer who’s moved since filing their 2021 return should update their mailing address at the state’s taxpayer website — tap.state.nm.us.
“The state has an unprecedented, historic revenue boom,” Taxation and Revenue Secretary Stephanie Schardin Clarke said in a public briefing Monday. “The rebates are a way to share the surplus directly back with taxpayers.”
The state is also preparing checks for residents who didn’t file tax returns — because their income was too low or for other reasons — on a first-come, first-served basis.
An online application portal opened Monday at www.yes.state.nm.us and will remain open until 5 p.m. June 23.
The size of the rebate will depend on how many people apply. Previous rounds of relief have offered checks averaging $517.
The state has set aside $15 million for the relief payments and expects to divide it equally among qualified applicants.
Applicants must provide either a Social Security number or an individual taxpayer identification number — available regardless of immigration status — to obtain the relief payment.
Alex Castillo Smith, deputy secretary of the Human Services Department, said the payment is intended to help lower-income New Mexicans who didn’t file tax returns.
“I would suspect a lot of New Mexicans use this money for food, gas or paying their bills,” Castillo Smith said.
The one-time payment won’t cause people to lose any other benefits they receive through the Human Services Department, which administers Medicaid and similar programs.
A person cannot receive both the economic relief payment and the tax rebate.
State officials encouraged people who are eligible for the tax rebate to file a 2021 return — it isn’t too late — because they may also receive other tax refunds.
The rebates are expected to cost the state about $690 million.
What to know about New Mexico rebates
— Tax rebates of $500 for individuals and $1,000 for couples will start going out next week. People with direct deposit may get the cash as early as Wednesday, and taxpayers who get checks mailed to them should receive the money by early July.
— Low-income residents who didn’t file a tax return can apply online by June 23 for an economic relief payment. The size of the check will depend on how many people apply.