AN ACT
RELATING TO TAXATION; AMENDING A
SECTION OF THE CORPORATE INCOME AND FRANCHISE TAX ACT TO CHANGE CERTAIN
PREREQUISITES FOR FILING ESTIMATED TAX PAYMENTS.
BE IT ENACTED BY THE LEGISLATURE OF
THE STATE OF NEW MEXICO:
Section 1. Section 7-2A-9.1 NMSA 1978 (being Laws 1986,
Chapter 5, Section 1, as amended) is amended to read:
"7-2A-9.1. ESTIMATED TAX DUE--PAYMENT OF ESTIMATED TAX‑-PENALTY--EXEMPTION.--
A. Every taxpayer shall pay estimated corporate
income tax to the state of New Mexico during its taxable year if its tax after
applicable credits is five thousand dollars ($5,000) or more in the current
taxable year. A taxpayer to which this
section applies shall calculate estimated tax by one of the following methods:
(1) estimating the amount of tax due, net of any
credits, for the current taxable year, provided that the estimated amount is at
least eighty percent of the amount determined to be due for the taxable year;
(2) using as the estimate an amount equal to one
hundred percent of the tax due for the previous taxable year, if the previous
taxable year was a full twelve-month year;
(3) using as the estimate an amount equal to one
hundred ten percent of the tax due for the taxable year immediately preceding
the previous taxable year, if the taxable year immediately preceding the
previous taxable year was a full twelve-month year and the return for the previous
taxable year has not been filed and the extended due date for filing that
return has not occurred at the time the first installment is due for the
taxable year; or
(4) estimating the amount of tax due, net of any
credits, for each fiscal quarter of the current taxable year, provided that the
estimated amount is at least eighty percent of the amount determined to be due
for that quarter.
B. If Subsection A of this section applies, the
amount of estimated tax shall be paid in installments as provided in this
subsection. Twenty-five percent of the
estimated tax calculated under Paragraph (1), (2) or (3) of Subsection A of
this section or one hundred percent of the estimated tax calculated under
Paragraph (4) of Subsection A of this section is due on or before the following
dates: the fifteenth day of the sixth month of the taxable year, the fifteenth
day of the ninth month of the taxable year and the fifteenth day of the twelfth
month of the taxable year. Application
of this subsection to a taxable year that is a fractional part of a year shall
be determined by regulation of the secretary.
C. Every taxpayer to which Subsection A of this
section applies that fails to pay the estimated tax when due or that makes
estimated tax payments during the taxable year that are less than the lesser of
eighty percent of the income tax imposed on the taxpayer under the Corporate
Income and Franchise Tax Act or the amount required by Paragraph (2), (3) or
(4) of Subsection A of this section shall be subject to the interest and
penalty provisions of Sections 7-1-67 and 7-1-69 NMSA 1978 on the underpayment.
D. For purposes of this section, the amount of
underpayment shall be the excess of the amount of the installment that would be
required to be paid if the estimated tax were equal to eighty percent of the
tax shown on the return for the taxable year or the amount required by
Paragraph (2), (3) or (4) of Subsection A of this section or, if no return was
filed, eighty percent of the tax for the taxable year for which the estimated
tax is due less the amount, if any, of the installment paid on or before the
last date prescribed for payment.
E. For purposes of this section, the period of
underpayment shall run from the date
the installment was required to be paid to whichever of the following dates is
earlier:
(1) the fifteenth day of the third month
following the end of the taxable year; or
(2) with respect to any portion of the
underpayment, the date on which such portion is paid. For the purposes of this paragraph, a payment
of estimated tax on any installment date shall be applied as a payment of any
previous underpayment only to the extent such payment exceeds the amount of the
installment determined under Subsection D of this section due on such
installment date."
Section 2. APPLICABILITY.--The provisions of this act
apply to taxable years beginning on or after January 1, 2003.
HB 762
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