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.

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(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

Endorsed by the Revenue Stabilization and Tax Policy Committee, the bill makes technical corrections to New Mexico tax statutes:

• •Section 1 removes an obsolete restriction on the adoption of county resolutions regarding low income property tax rebates.
• •Section 2 updates references.
• •Section 3 updates the Withholding Tax Act with the term "pass-through" entity.
• •Sections 4 and 5 amend the Withholding Tax Act to clarify payment due date specifications for pass-through entities.
• •Section 6 amends the definition of a Class B county in 7-20C-2 to reinsert Roosevelt County's authority to impose a local hospital gross receipts tax. This section corrects a conflict between the definitions of a type B county found in Chapters 54 and 129 of Laws of 1997, and enables Roosevelt County to continue to apply the gross receipts tax option to fund a hospital revenue bond. There would be no impact on the General Fund.

FISCAL IMPLICATIONS

No significant fiscal impact is expected.

TECHNICAL ISSUES

TRD notes reference to the Transfer Tax Act is also made in 7-2-14.5 (Subsection B) NMSA 1978. The reference in that section should also be removed.

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