46th legislature - STATE OF NEW MEXICO - first session, 2003
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 [for such taxable year can
reasonably be expected to be] 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
[and if the amount due for that previous taxable year was at
least five thousand dollars ($5,000); or];
(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 [the amount due for the taxable year
immediately preceding the previous taxable year was at least
five thousand dollars ($5,000)] 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
[follows: twenty-five percent of the estimated tax is due on
or before the fifteenth day of the fourth month of the taxable
year, another twenty-five percent is due on or before] 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, [another twenty-five
percent is due on or before] the fifteenth day of the ninth
month of the taxable year and [the final twenty-five percent is
due on or before] 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), [or]
(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),
[or] (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.