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The rate is 7.875% in Albuquerque but above 8% in some cities, including Santa Fe and Las CrucesEgolf said he hopes to craft a proposal that would reduce the rate by half a percentage pointHarper, in turn, wants the legislation to address or the taxation of business to business transactions. It drives up costs for smaller companies that can afford to hire their own accountants and lawyers, he said, because they have to pay gross receipts taxes on work handled by an outside firmIt isn certain, however, that Harper and Egolf will reach agreement on a proposal in time for the 30 day legislative session, which begins Jan. 21fairly optimistic, Harper said ThursdayReducing the tax rate and addressing pyramiding would cost New Mexico hundreds of millions of dollars in annual revenue.

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