New Mexico Gov. Susana Martinez said she would sign the state's $5.9 billion budget for fiscal 2014 after threatening to veto the spending measure until lawmakers agreed to lower business taxes.

An 11th-hour tax package was adopted in the final moments before the Legislature adjourned last week. Opponents said final passage in the Senate actually happened several minutes after the 2012 session should have ended, but their objections were overruled.

"We beat the buzzer," Martinez said. "It came down to literally the last few seconds, but it wasn't a victory for one political party or another. This was an important victory for all of New Mexico."

The compromise measure lowers the corporate income tax rate to 5.9% from the current 7.6% over the next five years.

"I may have some line-item vetoes but overall, I will sign the state budget and we will avoid the need for a special session," Martinez said.

The last-minute tax package also increased state incentives for movie production and includes a credit for manufacturers whose products are mostly sold out of state. Martinez said she vetoed an earlier version of the film incentive expansion because it was not part of a more comprehensive tax measure.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.