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| SPONSOR: | Maes | DATE TYPED: | 01/24/00 | HB | |||
| SHORT TITLE: | Net Capital Gain Income Tax Deduction | SB | 23 | ||||
| ANALYST: | Williams | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY00 | FY01 | FY00 | FY01 | ||
(Parenthesis ( ) Indicate Expenditure Decreases)
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY00 | FY01 | |||
| $ (29,700.0) | $ (76,100.0) | Recurring | General Fund | |
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates/Conflicts with/Companion to/Relates to SB153
SOURCES OF INFORMATION
Taxation and Revenue Department
SUMMARY
Synopsis of Bill
Expands the net capital gain deduction for state income tax to the greater of: 1) $1,000 or one-third of net capital gain income for tax year 2000; 2) $1,000 or two-thirds of net capital gain income for tax year 2001 and 3) $1,000 or all of the net capital gain income for tax year 2002 and beyond. Husbands and wives filing separate returns and who could have filed a joint return would each be allowed to deduct one-half of the capital gains deduction.
FISCAL IMPLICATIONS
Recurring revenue loss to General Fund estimated at $29,700 thousand in FY01 and $76,100 thousand in FY02. Losses grow to approximately $142,000 thousand in FY04.
Attached TRD fiscal impact report outlines capital gains realizations by income class for New Mexico taxpayers in tax year 1997.
ADMINISTRATIVE IMPLICATIONS
TRD notes existing resources could be used to implement the program.
AW/njw