FHA Loans in New Mexico

About This State and its People, Places, and Industries

New Mexico is a state located in the southwestern region of the United States. With a population density of 16 per square mile, New Mexico is the sixth- most sparsely inhabited U.S. state. Inhabited by Native American populations for many centuries, it has also been part of the Imperial Spanish viceroyalty of New Spain, part of Mexico, and a U.S. territory. Among U.S. states, New Mexico has the highest percentage of Hispanics, at 44 percent (2008 estimate), including descendants of Spanish colonists and recent immigrants from Latin America. It also has the third-highest percentage of Native Americans, after Alaska and Oklahoma, and the fifth-highest total number of Native Americans after California, Oklahoma, Arizona, and Texas. The tribes in the state consist of mostly Navajo and Pueblo peoples. As a result, the demographics and culture of the state are unique for their strong Hispanic, Mexican, and Native American influences. The flag of New Mexico is represented by the red and gold colors, which represent Spain, as well as the Zia symbol, an ancient Native American symbol for the sun.

As of July 1, 2008, the United States Census Bureau estimated New Mexico's population at 1,984,356, which represents an increase of 165,315, or 9.1%, since the last census in 2000. This includes a natural increase since the last census of 114,583 people (that is 235,551 births minus 120,968 deaths) and an increase due to net migration of 59,499 people into the state. Immigration from outside the United States resulted in a net increase of 34,375 people, and migration within the country produced a net gain of 25,124 people. The center of population of New Mexico is located in Torrance County, in the town of Manzano. 7.5% of New Mexico's population was reported as under 5 years of age, 25.3% under 18, and 13.1% were 65 or older. Females make up approximately 50.7% of the population. As of 2000, 8.2% of the residents of the state were foreign-born.

Oil and gas production, tourism, and federal government spending are important drivers of the state economy. State government has an elaborate system of tax credits and technical assistance to promote job growth and business investment, especially in new technologies.

In 2007 New Mexico's Gross Domestic Product was $76.178 billion (preliminary figure). In 2007 the per capita personal income was $31,474 (rank 43rd in the nation). In 2005 the percentage of persons below the poverty level was 18.4%. The New Mexico Tourism Department estimates that in Fiscal Year 2006 the travel industry in New Mexico generated expenditures of $6.5 billion.

As of January 2010, the state’s unemployment rate is 8.5%.

New Mexico is a leading crude oil and natural gas producer in the United States. The Permian Basin (part of the Mid-Continent Oil Field) and San Juan Basin lie partly in New Mexico. In 2006 New Mexico accounted for 3.4% of the crude oil, 8.5% of the dry natural gas, and 10.2% of the natural gas liquids produced in the United States.[48] In 2000 the value of oil and gas produced was $8.2 billion.

Federal government spending is a major driver of the New Mexico economy. In 2005 the federal government spent $2.03 on New Mexico for every dollar of tax revenue collected from the state. This rate of return is higher than any other state in the Union.

Many of the federal jobs relate to the military; the state hosts three air force bases (Kirtland Air Force Base, Holloman Air Force Base, and Cannon Air Force Base); a testing range (White Sands Missile Range); and an army proving ground and maneuver range (Fort Bliss – McGregor Range). A May 2005 estimate by New Mexico State University is that 11.65% of the state's total employment arises directly or indirectly from military spending. Other federal installations include the technology labs of Los Alamos National Laboratory and Sandia National Laboratories.
New Mexico provides a number of economic incentives to businesses operating in the state, including various types of tax credits and tax exemptions. Most of the incentives are based on job creation.

New Mexico law allows governments to provide land, buildings, and infrastructure to businesses to promote job creation. Several municipalities have imposed an Economic Development Gross Receipts Tax (a form of Municipal Infrastructure GRT) that is used to pay for these infrastructure improvements and for marketing their areas.
The state provides financial incentives for film production.[54][55] The New Mexico Film Office estimated at the end of 2007 that the incentive program had brought more than 85 film projects to the state since 2003 and had added $1.2 billion to the economy.

Beginning in 2008, personal income tax rates for New Mexico range from 1.7% to 4.9%, within four income brackets. Beginning in 2007, active-duty military salaries are exempt from the state income tax.

New Mexico imposes a Gross Receipts Tax (GRT) on many transactions, which many even include some governmental receipts. This resembles a sales tax but unlike the sales taxes in many states it applies to services as well as tangible goods. Normally, the provider or seller passes the tax on to the purchaser, however legal incidence and burden apply to the business, as an excise tax. GRT is imposed by the state and there may an additional locality component to produce a total tax rate. As of July 1, 2008 the combined tax rate ranged from 5.125% to 8.4375%.
Property tax is imposed on real property by the state, by counties, and by school districts. In general, personal-use personal property is not subject to property taxation. On the other hand, property tax is levied on most business-use personality. The taxable value of property is 1/3 of the assessed value. A tax rate of about 30 mills is applied to the taxable value, resulting in an effective tax rate of about 1%. In the 2005 tax year the average millage was about 26.47 for residential property and 29.80 for non-residential property. Assessed values of residences cannot be increased by more than 3% per year unless the residence is remodeled or sold.

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