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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Burpo

 

DATE TYPED:

01/29/02

 

HB

HM 9

 

SHORT TITLE:

Repeal Estate Tax

 

SB

 

 

 

ANALYST:

Gilbert

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

 

 

 

 

 

$24,200.2
See Narrative

 

Recurring

 

General Fund

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

 

LFC Files

 

Response Received

Taxation and Revenue Department (TRD)

 

SUMMARY

 

     Synopsis of Bill

 

House Memorial 9 requests New Mexico’s Congressional delegation to support the permanent repeal of (federal) estate tax provisions.

 

FISCAL IMPLICATIONS

 

Since New Mexico “piggybacks” on federal estate tax provisions, eliminating the federal tax effectively eliminates the state estate tax, unless separate legislation is passed to decouple from the federal provisions. For fiscal year 2001, net estate tax collections (100% distributed to the General Fund) totaled $24.2 million.

 

OTHER SUBSTANTIVE ISSUES

 

The provisions of the federal Economic Growth and Tax Relief Reconciliation Act of 2001, which repeal the estate tax, are scheduled to sunset in 2010.

 

RLG/ar:prr

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