[1]NOTE:
As provided in LFC policy, this report is intended only 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.
Only the most recent
FIR version (in HTML & Adobe PDF formats) is available on the Legislative
Website. The Adobe PDF version includes
all attachments, whereas the HTML version does not. Previously issued FIRs and attachments may be obtained from the
LFC’s office in Suite 101 of the State Capitol Building North.
|
SPONSOR: |
Varela |
DATE TYPED: |
02/08/02 |
HB |
410 |
||
|
SHORT TITLE: |
Gross Receipts Tax Rebate on Food |
SB |
|
||||
|
|
ANALYST: |
Smith |
|||||
REVENUE
|
Estimated Revenue |
Subsequent Years
Impact |
Recurring or Non-Rec |
Fund Affected |
|
|
FY02 |
FY03 |
|
|
|
|
|
($14,000.0) |
|
Recurring |
General Fund |
(Parenthesis ( ) Indicate Revenue Decreases)
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis
of Bill
House Bill 410 would mandate personal income tax rebates for taxes paid on food purchases. The rebates would range from $15 to $45 per exemption, and vary with income. The rebates would be refundable and limited to people who were New Mexico residents for at least six months during the year. Rebates would be based on the number of exemptions claimed for federal tax purposes and filing status. The change would be effective for tax years beginning on or after January 1, 2002TRD has provided the following table.
|
Head of Household, Married Filing Joint
and Single Taxpayers |
|
Married Filing Separate Returns |
||||||
|
Modified Gross Income |
Rebate Per Exemption |
|
Modified Gross Income |
Rebate Per Exemption |
||||
|
$0 |
or |
Less |
$45 |
|
$0 |
or |
less |
$45 |
|
$0 |
to |
$12,000 |
$45 |
|
$0 |
to |
$6,000 |
$45 |
|
$12,000 |
to |
$16,000 |
$30 |
|
$6,000 |
to |
$8,000 |
$30 |
|
$16,000 |
to |
$22,000 |
$15 |
|
$8,000 |
to |
$11,000 |
$15 |
|
$22,000 |
or |
Over |
$0 |
|
$11,000 |
or |
over |
$0 |
TRD has assumed that rebates will be provided to single taxpayers, although the bill as currently drafted does not include singles. Rebate rates for singles are assumed to be the same as for taxpayers filing joint returns. Credits per exemption average about $31, based on approximately 450,000 exemptions.
As
written, the measure would not provide credits for individuals filing as single
taxpayers.
[1]Begin typing on the * in replace mode. Do not add or delete spaces.