NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.
Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.
| SPONSOR: | Varela | DATE TYPED: | 02/07/01 | HB | 424 | ||
| SHORT TITLE: | One Time Income Tax Credit | SB | |||||
| ANALYST: | Williams | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY01 | FY02 | |||
| See Narrative | ||||
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to HB97, HB123, HB235, HB382, SB43, SB108, SB124, SB213, SB236, SB343 and SB365
SOURCES OF INFORMATION
LFC Files
Taxation and Revenue Department analysis not submitted
SUMMARY
Synopsis of Bill
The bill authorizes a one-time tax credit beginning in tax year 2001 for five percent of the state income tax liability for a New Mexico resident. Dependents would not be eligible for the credit. The bill contains a delayed repeal effective January 1, 2005 to allow for extended filers and filed tax returns which may later be amended.
FISCAL IMPLICATIONS
The bill would result in a non-recurring revenue loss for the general fund from $45,000.0 to $50.000.0 in FY02.
State personal income tax liability for tax year 2001, which impacts FY02 receipts, is projected at $1.014 billion for all taxpayers. Applying five percent to this amount would be $50,700.0. The actual fiscal impact would be somewhat less than this amount, because this legislation would not apply to out-of-state residents who have New Mexico income tax liability. TRD has not submitted a bill analysis for this bill; upon its receipt, this analysis will be updated.
AW/ar