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| SPONSOR: | Burpo | DATE TYPED: | 02/28/01 | HB | 566 | ||
| SHORT TITLE: | Exempt Certain Bond Income from Taxation | SB | |||||
| ANALYST: | Williams | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY01 | FY02 | |||
| NFI | ||||
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates/Conflicts with/Companion to/Relates to
SOURCES OF INFORMATION
LFC Files
Taxation and Revenue Department
SUMMARY
Synopsis of Bill
The bill authorizes certain bonds and associated interest to be free from taxation by state government.
Significant Issues
The exemption would apply to county and municipal revenue bonds.
FISCAL IMPLICATIONS
Article VIII, Section 3 of the New Mexico Constitution exempts all state and substate bonds from all types of taxation; however, certain sections of statute do not contain parallel language. As a result, there may be a somewhat gray area as to the tax treatment of these bonds. Because of the current constitutional provisions, this bill is scored as not impacting state revenues.
OTHER SUBSTANTIVE ISSUES
Clarification of tax treatment may be beneficial to local governments with respect to marketing strategies for these bonds.
AW/sb