HB 19 rolled into tax bill
By Molly Ann Howell
Managing Editor
House Bill 19, which would create trade ports across New Mexico, was absorbed into the 2025 legislative session’s omnibus tax bill that’s slated for approval later in the session.
During a Feb. 5 news conference, Rep. Patty Lundstrom described those trade ports as essentially industrial parks specifically designed to facilitate the distribution and processing of goods. Customs agents, for example, would be on-site to process shipments, she said.
To become a trade post, an area must have interstate access, railroads and airports.
In a previous interview with the Sun, Lundstrom explained why trade ports could be beneficial for New Mexico, calling them an economic development driver.
“We’ve had a lot of trouble over the years, and even still do today, with supply chain distribution,” she said. “We have to figure out a way in this country where we can unload and distribute cargo coming from outside the U.S. quicker than we currently are.”
Lundstrom and the other supporters of the bill recommend that local governments use gross receipts tax to fund the trade ports. The bill proposes that 1% of GRT accumulated over the next 10 years pay for the projects. Lundstrom estimated that amount would equal about $500 million. The funds would go to local governments to help assist them with creating the ports.
The state’s Economic Development Department would administer the funds, and hand out grants of no more than $250,000 to public partners. The public partners would then be required to study the costs and benefits of entering into a public-private partnership for a proposed trade port project.
GALLUP’S SLICE OF THE ACTION
Lundstrom started working on the trade port bill about two years ago, slowly gaining more support for it from other lawmakers, including the movers and shakers of Gallup. She’s part of a committee that’s invested in the idea of a trade port. BNSF and Gallup Land Partners also have representation on the committee, and both organizations are interested in becoming private partners on the project.
As for where this potential trade port would go, Lundstrom said she and some other officials are already looking at the Energy Logistics Park, which is near Carbon Coal Road in Gallup, north of Interstate 40.
She sees the potential port as a major economic boost for the city and county. The project would bring logistics, transloading, and some light manufacturing jobs to the local economy.
Overall, Lundstrom said she feels optimistic about HB 19 and the support it’s received.
“I think generally we’ve had very good reception on House Bill 19,” she said. “The reason I think it’s so popular is because it’s a great economic development initiative. It creates the diversification that we need in our state, using existing transportation infrastructure.”
The 2025 Legislative Sessions began Jan. 21 and will end March 22. The governor will have until April 22 to sign and approve any legislation that arrives on her desk.
