0001| HOUSE BILL 14
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| LUCIANO "LUCKY" VARELA
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0005|
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0006|
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0007|
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0008| FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE
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0009|
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0010| AN ACT
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0011| RELATING TO TAXATION; AMENDING THE CORPORATE INCOME AND
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0012| FRANCHISE TAX ACT TO CORRECT AN ERROR AND TO PROVIDE FOR A
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0013| THIRD OPTION FOR PAYING ESTIMATED CORPORATE INCOME TAX.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 7-2A-9.1 NMSA 1978 (being Laws 1986,
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0017| Chapter 5, Section 1, as amended) is amended to read:
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0018| "7-2A-9.1. ESTIMATED TAX DUE--PAYMENT OF ESTIMATED
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0019| TAX--PENALTY--EXEMPTION.--
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0020| A. Every taxpayer shall pay estimated corporate
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0021| income tax to the state of New Mexico during its taxable year
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0022| if its tax after applicable credits for such taxable year can
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0023| reasonably be expected to be five thousand dollars ($5,000) or
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0024| more. A taxpayer to which this section applies shall calculate
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0025| estimated tax by [either] one of the following methods:
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0001| (1) estimating the amount of tax due, net of
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0002| any credits, for the current taxable year, provided that the
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0003| estimated amount is at least eighty percent of the amount
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0004| determined to be due for the taxable year; [or]
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0005| (2) using [the greater of five thousand
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dollars ($5,000) or] as the estimate an amount equal to one
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0007| hundred percent of the tax due for the previous taxable year,
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0008| if the previous taxable year was a full twelve-month year and
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0009| if the amount due for that previous taxable year was at least
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0010| five thousand dollars ($5,000); or
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0011| (3) using as the estimate an amount equal to
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0012| one hundred ten percent of the tax due for the taxable year
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0013| immediately preceding the previous taxable year, if the taxable
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0014| year immediately preceding the previous taxable year was a full
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0015| twelve-month year, the amount due for the taxable year
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0016| immediately preceding the previous taxable year was at least
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0017| five thousand dollars ($5,000) and the return for the previous
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0018| taxable year has not been filed and the extended due date for
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0019| filing that return has not occurred at the time the first
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0020| installment is due for the taxable year.
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0021| B. If Subsection A of this section applies, the
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0022| amount of estimated tax shall be paid in installments as
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0023| follows: twenty-five percent of the estimated tax is due on or
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0024| before the fifteenth day of the fourth month of the taxable
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0025| year, another twenty-five percent is due on or before the
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0001| fifteenth day of the sixth month of the taxable year, another
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0002| twenty-five percent is due on or before the fifteenth day of
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0003| the ninth month of the taxable year and the final twenty-five
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0004| percent is due on or before the fifteenth day of the twelfth
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0005| month of the taxable year. Application of this subsection to a
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0006| taxable year that is a fractional part of a year shall be
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0007| determined by regulation of the secretary.
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0008| C. Every taxpayer to which Subsection A of this
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0009| section applies that fails to pay the estimated tax when due or
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0010| that makes estimated tax payments during the taxable year that
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0011| are less than the lesser of eighty percent of the income tax
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0012| imposed on the taxpayer under the Corporate Income and
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0013| Franchise Tax Act or the amount required by Paragraph (2) or
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0014| (3) of Subsection A of this section shall be subject to the
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0015| interest and penalty provisions of Sections 7-1-67 and 7-1-69
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0016| NMSA 1978 on the underpayment.
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0017| D. For purposes of this section, the amount of
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0018| underpayment shall be the excess of the amount of the
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0019| installment that would be required to be paid if the estimated
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0020| tax were equal to eighty percent of the tax shown on the return
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0021| for the taxable year or the amount required by Paragraph (2)
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0022| or (3) of Subsection A of this section or, if no return was
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0023| filed, eighty percent of the tax for the taxable year for which
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0024| the estimated tax is due less the amount, if any, of the
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0025| installment paid on or before the last date prescribed for
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0001| payment.
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0002| E. For purposes of this section, the period of
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0003| underpayment shall run from the date the installment was
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0004| required to be paid to whichever of the following dates is
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0005| earlier:
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0006| (1) the fifteenth day of the third month
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0007| following the end of the taxable year; or
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0008| (2) with respect to any portion of the
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0009| underpayment, the date on which such portion is paid. For the
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0010| purposes of this paragraph, a payment of estimated tax on any
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0011| installment date shall be applied as a payment of any previous
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0012| underpayment only to the extent such payment exceeds the amount
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0013| of the installment determined under Subsection D of this
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0014| section due on such installment date."
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0015| Section 2. APPLICABILITY.--The provisions of this act
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0016| apply to taxable years beginning on or after January 1, 1998.
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0017| State of New Mexico
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0018| House of Representatives
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0019|
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0020| FORTY-THIRD LEGISLATURE
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0021| FIRST SESSION, 1997
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0022|
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0023|
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0024| January 29, 1997
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0025|
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0001|
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0002| Mr. Speaker:
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0003|
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0004| Your TAXATION AND REVENUE COMMITTEE, to whom has
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0005| been referred
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0006|
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0007| HOUSE BILL 14
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0008|
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0009| has had it under consideration and reports same with
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0010| recommendation that it DO PASS, and thence referred to the
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0011| APPROPRIATIONS AND FINANCE COMMITTEE.
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0012|
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0013| Respectfully submitted,
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0014|
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0015|
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0016|
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0017|
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0018|
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0019| Jerry W. Sandel, Chairman
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0020|
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0021|
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0022| Adopted Not Adopted
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0023|
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0024| (Chief Clerk) (Chief Clerk)
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0025|
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0001| Date
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0002|
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0003| The roll call vote was 12 For 0 Against
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0004| Yes: 12
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0005| Excused: Parsons
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0006| Absent: None
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0007|
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0008|
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0009| G:\BILLTEXT\BILLW_97\H0014
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