Taxation and Revenue seeks $86M budget for security and service upgrades

Organ Mountain News report

SANTA FE - The New Mexico Taxation and Revenue Department is requesting an $86 million General Fund budget for Fiscal Year 2026, representing a 3% increase over the current year, to enhance security and improve customer service for tax and motor vehicle users.

The proposed budget includes one-time funding for several key initiatives aimed at improving efficiency and safeguarding taxpayer information. These initiatives include transitioning to electronic vehicle titling, upgrading imaging and data capture for paper tax returns, and enhancing data analytics to reduce errors, fraud, and processing times.

“Taxation and Revenue has made great strides with innovations to better serve taxpayers and the state of New Mexico over the past several years. Adequate funding will ensure that we continue to improve our security and our customer service,” said Taxation and Revenue Secretary Stephanie Schardin Clarke.

Key funding requests include:

• $5.6 million for upgrading imaging and data capture for paper returns, which currently have a 38% error rate.
• $1.4 million to implement electronic vehicle titling, replacing the current paper-based system to improve security and efficiency.
• $2.5 million for data analytics enhancements to reduce fraud, errors, and tax return processing times.

The department also aims to address high staff vacancy rates in positions directly impacting customer service and to bolster cybersecurity measures to protect sensitive data and systems.

Taxation and Revenue has seen a significant increase in revenue processing in recent years, doubling from approximately $10 billion in FY 2019 to $20 billion in FY 2024, without a proportional increase in staff. Department leaders emphasize the need for adequate resources to maintain secure and timely processing of returns and distributions while providing top-tier customer service.