[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.

 

 

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

 

 

 

SPONSOR:

Sharer

 

DATE TYPED:

02/04/02

 

HB

 

 

SHORT TITLE:

Gross Receipts Tax Task Force

 

SB

SJM 85

 

 

ANALYST:

Gilbert

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

 

 

NFI

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

LFC Files

 

No Response Received

Taxation and Revenue Department

 

SUMMARY

 

     Synopsis of Bill

 

Senate Joint Memorial 85 requests the Legislative Council to appoint a task force of legislators and tax policy experts from the private sector, higher education, and other organizations to study the impact of the gross receipts tax on consumers and business activity. Additionally, the joint memorial directs the task force to consider the impact of repealing the gross receipts tax and replacing it with a revenue source sufficient to offset the loss of gross receipts tax revenue.

 

     Significant Issues

 

This joint memorial points out that New Mexico is one of only four states that impose a gross receipts tax and that such tax is a barrier to businesses considering relocating to New Mexico. The current tax is not applied uniformly since there at least ninety gross receipts tax exemptions, some of which are granted simply due to the efforts of a particular industry’s lobbying efforts. As a result, the current gross receipts tax base continues to be eroded due to legislative efforts to ease the tax burden on some consumers or to encourage economic development. The joint memorial points out that replacing the gross receipts tax could have multiple benefits for the state, including increasing general fund revenue.

 

ADMINISTRATIVE IMPLICATIONS

 

The Legislative Council Service would be responsible for providing administrative support to the task force. The joint memorial also directs that the task force to make its findings and recommendations, if any, to the second session of the forty-sixth Legislature.

 

RLG/njw

 [1]Begin typing on the * in replace mode.  Do not add or delete spaces.