45th legislature - STATE OF NEW MEXICO - second session, 2002

REQUESTING THE ADMINISTRATIVE OFFICE OF THE COURTS TO STUDY THE FEASIBILITY OF TRANSFERRING THE INDEPENDENT HEARING OFFICER FUNCTION FROM THE TAXATION AND REVENUE DEPARTMENT.

WHEREAS, the Tax Administration Act, being Chapter 7, Article 1 NMSA 1978, grants taxpayers the right to protest to an independent hearing officer actions taken or not taken by the taxation and revenue department in the administration of the tax laws of New Mexico; and

WHEREAS, sound principles of tax administration mandate that taxpayers be allowed to present their protests in a neutral environment with no perceived bias in favor of the taxing or regulatory agency; and

WHEREAS, New Mexico statute places the function of the independent hearing officer in the taxation and revenue department; and

WHEREAS, the independent hearing officers of the taxation and revenue department have been known to assist in the drafting of rules and regulations, the application of which those independent hearing officers may, at some time in the future, have to rule on in the course of hearing a protest from a taxpayer; and

WHEREAS, the independent hearing officers of the taxation and revenue department, because of budgetary constraints, are not totally segregated from and are required to share resources with the legal staff charged with representing the taxation and revenue department during the hearing of taxpayer protests; and

WHEREAS, the only alternative to the hearing process available to taxpayers to protest an action taken or not taken by the taxation and revenue department is to file suit in the district court in Santa Fe county; and

WHEREAS, because many New Mexico taxpayers are unable to afford to hire professionals to advise them or represent them in the protest of an action taken or not taken by the taxation and revenue department, they must represent themselves before an independent hearing officer; and

WHEREAS, the creation of a separate tax court cannot be justified based on the number of protests filed annually by taxpayers; and

WHEREAS, the independent hearing officers of the taxation and revenue department are administrative law judges;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the administrative office of the courts be requested to study the feasibility of transferring the independent hearing officer function of the taxation and revenue department to the administrative office of the courts or to another appropriate agency within state government; and

BE IT FURTHER RESOLVED that the administrative office of the courts seek input on this issue from the New Mexico society of certified public accountants, the state bar of New Mexico and appropriate advocacy organizations representing the taxpayers of New Mexico; and

BE IT FURTHER RESOLVED that the administrative office of the courts report its findings to the legislative finance committee prior to the first session of the forty-sixth legislature; and

BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the administrative office of the courts, the secretary of taxation and revenue, the executive director of the New Mexico society of certified public accountants and the president of the state bar of New Mexico.