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.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

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 Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Taxation and Revenue Department

SUMMARY

Synopsis of Bill

House Bill 787 changes the gross receipts and compensating tax act by changing the definition of "engaging in business" and by amending the citations regarding deductions.

The definition of engaging in business is amended to except "a world wide web site as a third-party content provider on a computer physically located in New Mexico but owned by another non affiliated person."

FISCAL IMPLICATIONS

TRD reports that there is no fiscal impact associated with these changes. The change in the definition excluding a world web site has no impact because these typically do not have revenues.

According to TRD, the changes in exemption citations provide a more accurate listing of deductions contained in the act.

ADMINISTRATIVE IMPLICATIONS

TRD reports no administrative impact.

BT/njw