REQUESTING THE TAXATION AND REVENUE DEPARTMENT TO STUDY POSSIBLE IMPROVEMENTS IN THE NONTAXABLE TRANSACTION CERTIFICATE SYSTEM AND IMPLEMENT CHANGES TO MODERNIZE THAT SYSTEM.

WHEREAS, the taxation and revenue department is responsible for the issuance, monitoring and auditing of the use of nontaxable transaction certificates provided for in the Gross Receipts and Compensating Tax Act; and

WHEREAS, the present system has not been changed significantly in the last thirty years and remains as originally designed, with almost total dependency on paper documents; and

WHEREAS, serious study of the current system needs to be undertaken and recommendations made for making appropriate use of available electronic and other technology to respond to the demands of current business practice; and

WHEREAS, Senate Bill 714 is pending before this legislature, and its enactment would delay the issuance of nontaxable transaction certificates for two years while the taxation and revenue department works on developing a revised system;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the taxation and revenue department be requested to undertake a serious study of the nontaxable transaction certificate system and recommend improvements to that system with particular emphasis on using available technology to modernize it and make it more cost-benefit effective; and

BE IT FURTHER RESOLVED that the taxation and revenue department report its findings and recommendations to the legislative interim revenue stabilization and taxation committee by December 1, 2001; and

BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the governor and to the secretary of taxation and revenue.