46th legislature - STATE OF NEW MEXICO - first session, 2003
FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE
AN ACT
RELATING TO TAXATION; AMENDING THE TAX ADMINISTRATION ACT; AMENDING PROVISIONS REGARDING CONFIDENTIALITY OF TAX RETURNS AND OTHER INFORMATION; INCREASING THE SECRETARY OF TAXATION AND REVENUE'S ABATEMENT AUTHORITY; AMENDING PROVISIONS REGARDING INSTALLMENT PAYMENTS, REFUNDS, HEARINGS AND INTEREST.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-1-8 NMSA 1978 (being Laws 1965, Chapter 248, Section 13, as amended) is amended to read:
"7-1-8. CONFIDENTIALITY OF RETURNS AND OTHER
INFORMATION.--It is unlawful for [any] an employee of the
department or [any] a former employee of the department to
reveal to [any] an individual other than another employee of
the department, [any] information contained in the return of
[any] a taxpayer made pursuant to [any] a law subject to
administration and enforcement under the provisions of the Tax
Administration Act or any other information about [any] a
taxpayer acquired as a result of his employment by the
department and not available from public sources, except:
A. to an authorized representative of another state; provided that the receiving state has entered into a written agreement with the department to use the information for tax purposes only and that the receiving state has enacted a confidentiality statute similar to this section to which the representative is subject;
B. to a representative of the secretary of the treasury or the secretary's delegate pursuant to the terms of a reciprocal agreement entered into with the federal government for exchange of the information;
C. to the multistate tax commission or its authorized representative; provided that the information is used for tax purposes only and is disclosed by the multistate tax commission only to states that have met the requirements of Subsection A of this section;
D. to a district court, [or] an appellate court or
a federal court:
(1) in response to an order thereof in an action relating to taxes to which the state is a party and in which the information sought is about a taxpayer who is party to the action and is material to the inquiry, in which case only that information may be required to be produced in court and admitted in evidence subject to court order protecting the confidentiality of the information and no more;
(2) in [any] an action in which the department
is attempting to enforce an act with which the department is
charged or to collect a tax; or
(3) in any matter in which the department is a party and the taxpayer has put his own liability for taxes at issue, in which case only that information regarding the taxpayer who is party to the action may be produced, but this shall not prevent the disclosure of department policy or interpretation of law arising from circumstances of a taxpayer who is not a party;
E. to the taxpayer or to the taxpayer's authorized representative; provided, however, that nothing in this subsection shall be construed to require any employee to testify in a judicial proceeding except as provided in Subsection D of this section;
F. information obtained through the administration
of [any] a law not subject to administration and enforcement
under the provisions of the Tax Administration Act to the
extent that release of that information is not otherwise
prohibited by law;
G. in [such] a manner, for statistical purposes,
that the information revealed is not identified as applicable
to [any] an individual taxpayer;
H. with reference to [any] information concerning
the tax on tobacco imposed by Sections 7-12-1 through 7-12-13
and Sections 7-12-15 and 7-12-17 NMSA 1978 to a committee of
the legislature for a valid legislative purpose or to the
attorney general for purposes of Section 6-4-13 NMSA 1978 and
the master settlement agreement defined in Section 6-4-12 NMSA
1978;
I. to a transferee, assignee, buyer or lessor of a
liquor license, the amount and basis of [any] an unpaid
assessment of tax for which his transferor, assignor, seller or
lessee is liable;
J. to a purchaser of a business as provided in
Sections 7-1-61 through 7-1-63 NMSA 1978, the amount and basis
of [any] an unpaid assessment of tax for which the purchaser's
seller is liable;
K. to a municipality of this state upon its request
for [any] a period specified by that municipality within the
twelve months preceding the request for the information by that
municipality:
(1) the names, taxpayer identification numbers and addresses of registered gross receipts taxpayers reporting gross receipts for that municipality under the Gross Receipts and Compensating Tax Act or a local option gross receipts tax imposed by that municipality. The department may also release the information described in this paragraph quarterly or upon such other periodic basis as the secretary and the municipality may agree; and
(2) information indicating whether persons
shown on [any] a list of businesses located within that
municipality furnished by the municipality have reported gross
receipts to the department but have not reported gross receipts
for that municipality under the Gross Receipts and Compensating
Tax Act or a local option gross receipts tax imposed by that
municipality.
The employees of municipalities receiving information as provided in this subsection shall be subject to the penalty contained in Section 7-1-76 NMSA 1978 if that information is revealed to individuals other than other employees of the municipality in question or the department;
L. to the commissioner of public lands for use in auditing that pertains to rentals, royalties, fees and other payments due the state under land sale, land lease or other land use contracts; the commissioner of public lands and employees of the commissioner are subject to the same provisions regarding confidentiality of information as employees of the department;
M. the department shall furnish, upon request by the child support enforcement division of the human services department, the last known address with date of all names certified to the department as being absent parents of children receiving public financial assistance. The child support enforcement division personnel shall use such information only for the purpose of enforcing the support liability of the absent parents and shall not use the information or disclose it for any other purpose; the child support enforcement division and its employees are subject to the provisions of this section with respect to any information acquired from the department;
N. with respect to the tax on gasoline imposed by
the Gasoline Tax Act, the department shall make available for
public inspection at monthly intervals a report covering the
[amount and gallonage] number of gallons of gasoline and
ethanol blended fuels [imported, exported, sold and used,
including tax-exempt sales to the federal government reported
or upon which the gasoline tax was paid and covering taxes
received from each distributor] received and deducted, and the
amount of tax paid by each person required to file a gasoline
tax return or pay gasoline tax in the state of New Mexico;
O. the identity of [distributors and gallonage] a
rack operator, importer, blender, supplier or distributor and
the number of gallons reported on returns required under the
Gasoline Tax Act, Special Fuels Supplier Tax Act or Alternative
Fuel Tax Act to [any] a rack operator, importer, blender,
distributor or supplier, but only when it is necessary to
enable the department to carry out its duties under the
Gasoline Tax Act, the Special Fuels Supplier Tax Act or the
Alternative Fuel Tax Act;
P. the department shall release upon request only the names and addresses of all gasoline or special fuel distributors, wholesalers and retailers to the New Mexico department of agriculture, the employees of which are thereby subject to the penalty contained in Section 7-1-76 NMSA 1978 if that information is revealed to individuals other than employees of either the New Mexico department of agriculture or the department;
Q. the department shall answer all inquiries concerning whether a person is or is not a registered taxpayer;
R. upon request of a municipality or county of this
state, the department shall permit officials or employees of
the municipality or county to inspect the records of the
department pertaining to an increase or decrease to a
distribution or transfer made pursuant to Section 7-1-6.15 NMSA
1978 for the purpose of reviewing the basis for the increase or
decrease. The municipal or county officials or employees
receiving information provided in this subsection shall not
reveal that information to any person other than another
employee of the municipality or the county, the department or a
district court, an appellate court or a federal court in a
proceeding relating to a disputed distribution and in which
both the state and the municipality or county are parties.
[Any] Information provided pursuant to provisions of this
subsection that is revealed other than as provided in this
subsection shall subject the person revealing the information
to the penalties contained in Section 7-1-76 NMSA 1978;
S. to a county of this state that has in effect
[any] a local option gross receipts tax imposed by the county
upon its request for [any] a period specified by that county
within the twelve months preceding the request for the
information by that county:
(1) the names, taxpayer identification numbers and addresses of registered gross receipts taxpayers reporting gross receipts either for that county in the case of a local option gross receipts tax imposed on a countywide basis or only for the areas of that county outside of any incorporated municipalities within that county in the case of a county local option gross receipts tax imposed only in areas of the county outside of any incorporated municipalities. The department may also release the information described in this paragraph quarterly or upon such other periodic basis as the secretary and the county may agree;
(2) in the case of a local option gross
receipts tax imposed by a county on a countywide basis,
information indicating whether persons shown on [any] a list of
businesses located within the county furnished by the county
have reported gross receipts to the department but have not
reported gross receipts for that county under the Gross
Receipts and Compensating Tax Act or a local option gross
receipts tax imposed by that county on a countywide basis; and
(3) in the case of a local option gross
receipts tax imposed by a county only on persons engaging in
business in that area of the county outside of [any]
incorporated municipalities, information indicating whether
persons [shown] on [any] a list of businesses located in [the
area of] that county outside of [any] the incorporated
municipalities but within that county furnished by the county
have reported gross receipts to the department but have not
reported gross receipts for [the area of] that county outside
of [any] the incorporated municipalities within that county
under the Gross Receipts and Compensating Tax Act or [any] a
local option gross receipts tax imposed by the county only on
persons engaging in business in that [area of the] county
outside of [any] the incorporated municipalities.
The officers and employees of counties receiving
information as provided in this subsection shall be subject to
the penalty contained in Section 7-1-76 NMSA 1978 if [such] the
information is revealed to individuals other than other
officers or employees of the county in question or the
department;
T. to authorized representatives of an Indian nation, tribe or pueblo, the territory of which is located wholly or partially within New Mexico, pursuant to the terms of a reciprocal agreement entered into with the Indian nation, tribe or pueblo for the exchange of that information for tax purposes only; provided that the Indian nation, tribe or pueblo has enacted a confidentiality statute similar to this section;
U. information with respect to the taxes or tax acts administered pursuant to Subsection B of Section 7-1-2 NMSA 1978, except that:
(1) information for or relating to [any] a
period prior to July 1, 1985 with respect to Sections 7-25-1
through 7-25-9 and 7-26-1 through 7-26-8 NMSA 1978 may be
released only to a committee of the legislature for a valid
legislative purpose;
(2) except as provided in Paragraph (3) of
this subsection, contracts and other agreements between the
taxpayer and other parties and the proprietary information
contained in [such] those contracts and agreements shall not be
released without the consent of all parties to the contract or
agreement; and
(3) audit workpapers and the proprietary
information contained in [such] the workpapers shall not be
released except to:
(a) the minerals management service of the United States department of the interior, if production occurred on federal land;
(b) a person having a legal interest in the property that is subject to the audit;
(c) a purchaser of products severed from a property subject to the audit; or
(d) the authorized representative of any
of the persons in Subparagraphs (a) through (c) of this
paragraph. This paragraph does not prohibit the release of
[any] proprietary information contained in the workpapers that
is also available from returns or from other sources not
subject to the provisions of this section;
V. information with respect to the taxes, surtaxes, advance payments or tax acts administered pursuant to Subsection C of Section 7-1-2 NMSA 1978;
W. to the public regulation commission, information with respect to the Corporate Income and Franchise Tax Act required to enable the commission to carry out its duties;
X. to the state racing commission, information with respect to the state, municipal and county gross receipts taxes paid by race tracks;
Y. upon request of a corporation authorized to be
formed under the Educational Assistance Act, the department
shall furnish the last known address and the date of that
address of every person certified to the department as [being]
an absent obligor of an educational debt [that is] due and owed
to the corporation or that the corporation has lawfully
contracted to collect. The corporation and its officers and
employees shall use that information only [for the purpose of
enforcing] to enforce the educational debt obligation of [such]
the absent obligors and shall not disclose that information or
use it for any other purpose;
Z. [any] a decision and order made by a hearing
officer pursuant to Section 7-1-24 NMSA 1978 with respect to a
protest filed with the secretary on or after July 1, 1993;
AA. information required by [any] a provision of
the Tax Administration Act to be made available to the public
by the department;
BB. upon request by the Bernalillo county
metropolitan court, the department shall furnish the last known
address and the date of that address for every person
[certified to the department by] the court certifies to the
department as [being] a person who owes fines, fees or costs to
the court or who has failed to appear pursuant to a court order
or a promise to appear;
CC. upon request by a magistrate court, the
department shall furnish the last known address and the date of
that address for every person [certified to the department by]
the court certifies to the department as [being] a person who
owes fines, fees or costs to the court or who has failed to
appear pursuant to a court order or a promise to appear;
DD. to the national tax administration agencies of Mexico and Canada, provided the agency receiving the information has entered into a written agreement with the department to use the information for tax purposes only and is subject to a confidentiality statute similar to this section;
EE. to a district attorney, a state district court
grand jury or federal grand jury [with respect to any] for an
investigation of or proceeding related to an alleged criminal
violation of the tax laws; [and]
FF. to a third party subject to a subpoena or levy issued pursuant to the provisions of the Tax Administration Act, the identity of the taxpayer involved, the taxes or tax acts involved and the nature of the proceeding; and
GG. to the gaming control board, tax returns of license applicants and their affiliates as defined in Subsection E of Section 60-2E-14 NMSA 1978."
Section 2. Section 7-1-21 NMSA 1978 (being Laws 1965, Chapter 248, Section 23, as amended) is amended to read:
"7-1-21. INSTALLMENT PAYMENTS OF TAXES--INSTALLMENT AGREEMENTS.--
A. Whenever justified by the circumstances, the
secretary or the secretary's delegate may enter into a written
agreement with [any] a taxpayer [wherein] in which the taxpayer
admits conclusive liability for the entire amount of taxes due
and agrees to make monthly installment payments [thereof]
according to the terms of the agreement, but not for a period
longer than [thirty-six] sixty months. No installment
agreement shall prevent the accrual of interest [as] otherwise
provided by law.
B. The agreement provided for in this section is to
be known as an "installment agreement". If entered into after
[any] a court acquires jurisdiction [of] over the matter, the
agreement shall be part of a stipulated order or judgment
disposing of the case.
C. At the time of entering into an installment agreement, the secretary shall require the affected taxpayer or person to furnish security for payment of the taxes admitted to be due according to the terms of the agreement, but if the taxpayer does not provide security, the secretary shall cause a notice of lien to be filed in accordance with the provisions of Section 7-1-38 NMSA 1978, and when so filed it shall constitute a lien upon all the property or rights to property of the taxpayer in that county in the same manner as in the case of the lien provided for in Section 7-1-37 NMSA 1978.
D. An installment agreement is conclusive as to liability for payment of the amount of taxes specified therein but does not preclude the assessment of any additional tax.
E. After entering into the agreement, except in
unusual circumstances as require the secretary in his
discretion to take further action to protect the interests of
the state, no further attempts to enforce payment of the tax by
levy or injunction shall be made; however, if installment
payments are not made on or before the times specified in the
agreement, if any other condition contained in the agreement is
not met or if the taxpayer does not make payment of all other
taxes for which he becomes liable as they [fall] are due, the
secretary may proceed to enforce collection of the tax as if
the agreement had not been made or may proceed, as provided in
Section 7-1-54 NMSA 1978, against the security furnished.
F. Records of installment agreements in excess of
one thousand dollars ($1,000) shall be available for inspection
by the public. The department shall keep [such] the records
for a minimum of three years from the date of the installment
agreement."
Section 3. Section 7-1-28 NMSA 1978 (being Laws 1965, Chapter 248, Section 30, as amended) is amended to read:
"7-1-28. AUTHORITY FOR ABATEMENTS OF ASSESSMENTS OF TAX.--
A. In response to a written protest against an
assessment, submitted in accordance with the provisions of
Section 7-1-24 NMSA 1978, but before any court acquires
jurisdiction of the matter, or when a "notice of assessment of
taxes" is [found to be] incorrect, the secretary or the
secretary's delegate, with [the] prior written approval of the
attorney general, may abate any part of an assessment
determined by the secretary or the secretary's delegate to have
been incorrectly, erroneously or illegally made, except that
the secretary or the secretary's delegate may make abatements:
(1) [abatements] with respect to the Oil and
Gas Severance Tax Act, the Oil and Gas Conservation Tax Act,
the Oil and Gas Emergency School Tax Act, the Oil and Gas Ad
Valorem Production Tax Act, the Natural Gas Processors Tax Act
or the Oil and Gas Production Equipment Ad Valorem Tax Act,
abatements of gasoline tax made under Section 7-13-17 NMSA 1978
and abatements of cigarette tax made under the Cigarette Tax
Act [may be made] without the prior approval of the attorney
general regardless of the amount;
(2) [abatements] with respect to the Corporate
Income and Franchise Tax Act amounting to less than twenty
thousand dollars ($20,000) [may be made] without prior approval
of the attorney general; and
(3) [abatements] amounting to less than [five
thousand dollars ($5,000) may be made] ten thousand dollars
($10,000) without the prior written approval of the attorney
general.
B. Pursuant to the final order of the district court for Santa Fe county, the court of appeals, the supreme court of New Mexico or any federal court, from which order, appeal or review is not successfully taken by the department, adjudging that any person is not required to pay any portion of tax assessed to that person, the secretary or the secretary's delegate shall cause that amount of the assessment to be abated.
C. Pursuant to a compromise of taxes agreed to by the secretary and according to the terms of the closing agreement formalizing the compromise, the secretary or the secretary's delegate shall cause the abatement of the appropriate amount of any assessment of tax.
D. The secretary or the secretary's delegate shall cause the abatement of the amount of an assessment of tax that is equal to the amount of fee paid to or retained by an out-of-state attorney or collection agency from a judgment or the amount collected by the attorney or collection agency pursuant to Section 7-1-58 NMSA 1978.
E. Records of abatements made in excess of [five
thousand dollars ($5,000)] ten thousand dollars ($10,000) shall
be available for inspection by the public. The department
shall keep such records for a minimum of three years from the
date of the abatement."
Section 4. Section 7-1-29 NMSA 1978 (being Laws 1965, Chapter 248, Section 31, as amended) is amended to read:
"7-1-29. AUTHORITY TO MAKE REFUNDS OR CREDITS.--
A. In response to a claim for refund made as
provided in Section 7-1-26 NMSA 1978, but before [any] a court
acquires jurisdiction of the matter, the secretary or the
secretary's delegate may authorize the refund to a person of
the amount of any overpayment of tax determined by the
secretary or the secretary's delegate to have been erroneously
made by the person, together with allowable interest. [Any] A
refund of tax and interest erroneously paid and amounting to
more than ten thousand dollars ($10,000) may be made to [any
one] a person only with the prior approval of the attorney
general, except that the secretary or the secretary's delegate
may make refunds with respect to:
(1) [refunds with respect to] the Oil and Gas
Severance Tax Act, the Oil and Gas Conservation Tax Act, the
Oil and Gas Emergency School Tax Act, the Oil and Gas Ad
Valorem Production Tax Act, the Natural Gas Processors Tax Act
or the Oil and Gas Production Equipment Ad Valorem Tax Act,
[refunds of gasoline tax made under] Section 7-13-17 NMSA 1978
and [refunds of cigarette tax made under] the Cigarette Tax Act
[may be made] without the prior approval of the attorney
general regardless of the amount; and
(2) [refunds with respect to] the Corporate
Income and Franchise Tax Act amounting to less than twenty
thousand dollars ($20,000) [may be made] without the prior
approval of the attorney general.
B. Pursuant to the final order of the district
court, the court of appeals, the supreme court of New Mexico or
[any] a federal court, from which order, appeal or review is
not successfully taken, adjudging that [any] a person has made
an overpayment of tax, the secretary shall authorize the refund
to the person of the amount thereof.
C. In the discretion of the secretary, any amount
of tax [due] to be refunded may be offset against any amount of
tax for [the payment of] which the person due to receive the
refund is liable.
D. In an audit by the department or a managed audit
covering multiple reporting periods where both underpayments
and overpayments of a tax [are found to] have been made in
different reporting periods, the department shall credit the
tax overpayments [found] against the underpayments, provided
that the taxpayer files a claim for refund of the overpayments.
An overpayment shall be applied as a credit first to the
earliest underpayment [found] and then to succeeding
underpayments. An underpayment of tax to which an overpayment
is credited pursuant to this section shall be deemed paid in
the period in which the overpayment was made or the period [in]
to which the overpayment was credited against an underpayment,
whichever is later. If the overpayments credited pursuant to
this section exceed the underpayments [found for] of a tax, the
amount of the net overpayment for the periods covered in the
audit shall be refunded to the taxpayer.
E. When a taxpayer makes a payment identified to a particular return or assessment, and the department determines that the payment exceeds the amount due pursuant to that return or assessment, the secretary may apply the excess to the taxpayer's other liabilities under the tax acts to which the return or assessment applies, without requiring the taxpayer to file a claim for a refund. The liability to which an overpayment is applied pursuant to this section shall be deemed paid in the period in which the overpayment was made or the period to which the overpayment was applied, whichever is later.
F. If the department determines, upon review of an original or amended income tax return, corporate income and franchise tax return, estate tax return, special fuels excise tax return or oil and gas tax return, that there has been an overpayment of tax for the taxable period to which the return or amended return relates in excess of the amount due to be refunded to the taxpayer under the provisions of Subsection J of Section 7-1-26 NMSA 1978, the department may refund that excess amount to the taxpayer without requiring the taxpayer to file a refund claim.
[E.] G. Records of refunds made in excess of ten
thousand dollars ($10,000) shall be available for inspection by
the public. The department shall keep such records for a
minimum of three years from the date of the refund."
Section 5. Section 7-1-53 NMSA 1978 (being Laws 1965, Chapter 248, Section 55, as amended) is amended to read:
"7-1-53. ENJOINING DELINQUENT TAXPAYER FROM CONTINUING IN BUSINESS.--
A. [In order] To ensure or to compel payment of
taxes and to aid in the enforcement of the provisions of the
Tax Administration Act, the secretary may apply to a district
court of this state to have any delinquent taxpayer or person
who may be or may become liable for payment of any tax enjoined
from engaging in business until the delinquent taxpayer ceases
to be a delinquent taxpayer or until the delinquent taxpayer or
person complies with other requirements, reasonably necessary
to protect the revenues of the state, placed on the delinquent
taxpayer or person by the secretary.
B. Upon application to a court for [the issuance
of] an injunction against a delinquent taxpayer, the court may
forthwith issue an order temporarily restraining the delinquent
taxpayer from doing business. The court shall hear the matter
within [three] fifteen days [and]. Upon written request of the
taxpayer, the hearing may be held earlier. Upon a showing by
[the] a preponderance of the evidence that the taxpayer is
delinquent and [that the taxpayer] has been given notice of the
hearing as required by law, the court may enjoin the taxpayer
from engaging in business in New Mexico until the taxpayer
ceases to be a delinquent taxpayer. Upon issuing an
injunction, the court may also order the business premises of
the taxpayer [to be] sealed by the sheriff and may allow the
taxpayer access thereto only upon approval of the court.
C. Upon application to a court for [the issuance
of] an injunction against a person other than a delinquent
taxpayer, the court:
(1) may issue an order temporarily restraining
the person other than the delinquent taxpayer from engaging in
business [the court];
(2) shall hear the matter within [three]
fifteen days, [and upon a showing that:
(1) the person has been given notice of the
hearing as required by law;
(2) demand has been made upon the taxpayer for
the furnishing of security;
(3) the taxpayer has not furnished security;
and
(4) the secretary considers the collection
from the person primarily responsible therefor of the total
amount of tax due or reasonably expected to become due to be in
jeopardy; the court may forthwith issue an injunction to such
taxpayer in terms commanding the person to refrain from
engaging in business until the person complies in full with the
demand of the department for the furnishing of security] except
that the hearing may be held earlier if requested in writing by
the person who is the subject of the temporary restraining
order; and
(3) may without delay issue an injunction to the taxpayer in terms commanding the person who is the subject of the temporary restraining order to refrain from engaging in business until that person complies in full with the demand of the department to furnish security, if there is a showing that:
(a) the person who is the subject of the temporary restraining order has been given notice of the hearing for the injunction as required by law;
(b) a demand by the department has been made upon the taxpayer to furnish security;
(c) the taxpayer has not furnished security; and
(d) the secretary considers the collection from the person primarily responsible for the total amount of tax due or reasonably expected to become due to be in jeopardy.
D. [No] A temporary restraining order or injunction
shall not issue by provision of this section against any person
who has furnished security in accordance with the provisions of
Section 7-1-54 NMSA 1978. Upon a showing to the court by any
person against whom a temporary restraining order or writ of
injunction has issued by provision of this section that [the]
that person has furnished security in accordance with the
provisions of Section 7-1-54 NMSA 1978, the court shall
dissolve or set aside the temporary restraining order or
injunction."
Section 6. Section 7-1-68 NMSA 1978 (being Laws 1965, Chapter 248, Section 69, as amended) is amended to read:
"7-1-68. INTEREST ON OVERPAYMENTS.--
A. As provided in this section, interest shall be allowed and paid on the amount of tax overpaid by a person that is subsequently refunded or credited to that person.
B. Interest [payable] on overpayments of tax shall
accrue and be paid at the rate of fifteen percent a year,
computed on a daily basis; provided that if a different rate is
specified by a compact or other interstate agreement to which
New Mexico is a party, that rate shall [be applied] apply to
amounts due under the compact or other agreement.
C. Unless otherwise provided by this section,
interest on an overpayment not arising from an assessment by
the department shall be paid from the date of the claim for
refund [was made] until a date preceding by not more than
thirty days the date [on which the amount thereof is credited
or refunded] of the credit or refund to any person; interest on
an overpayment arising from an assessment by the department
shall be paid from the date of overpayment [was made] until a
date preceding by not more than thirty days the date [on which
the amount thereof is credited or refunded] of the credit or
refund to any person.
D. No interest shall be allowed or paid with respect to an amount credited or refunded if:
(1) the amount of interest due is less than one dollar ($1.00);
(2) the credit or refund is made within seventy-five days of the date of the claim for refund of:
(a) income tax, pursuant to either the Income Tax Act or the Corporate Income and Franchise Tax Act for the tax year immediately preceding the tax year in which the claim is made; or
(b) gasoline tax to users of gasoline off the highways;
(3) the credit or refund is made within one hundred twenty days of the date of the claim for refund of income tax, pursuant to the Income Tax Act or the Corporate Income and Franchise Tax Act, for any tax year more than one year prior to the year in which the claim is made;
(4) Sections 6611(f) and 6611(g) of the Internal Revenue Code, as those sections may be amended or renumbered, prohibit payment of interest for federal income tax purposes;
(5) the credit or refund is made within sixty days of the date of the claim for refund of any tax other than income tax;
(6) the credit results from overpayments found in an audit of multiple reporting periods and applied to underpayments found in that audit or refunded as a net overpayment to the taxpayer pursuant to Section 7-1-29 NMSA 1978;
(7) the department applies the credit or refund to an intercept program, to the taxpayer's estimated payment prior to the due date for the estimated payment, or to offset prior liabilities of the taxpayer pursuant to Section
7-1-29 NMSA 1978; or
(8) the credit or refund results from overpayments the department finds pursuant to Subsection F of Section 7-1-29 NMSA 1978 that exceed the refund claimed by the taxpayer on the return.
E. Nothing in this section shall be construed to require the payment of interest upon interest."
Section 7. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2003.