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SPONSOR: |
Robinson |
DATE
TYPED: |
|
HB |
|
||
SHORT
TITLE: |
Professional
Promotion Gross Receipts |
SB |
700 |
||||
|
ANALYST: |
Smith |
|||||
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
(60.0) |
(65.0) |
Recurring |
General Fund |
|
(39.0) |
(42.0) |
Recurring |
Local Funds |
|
* |
* |
Recurring |
Athletic Commission |
|
|
|
|
|
(Parenthesis
( ) Indicate Revenue Decreases)
Responses
Received From
TRD
SUMMARY
Synopsis of Bill
Senate Bill 700 would
exempt receipts from promoting live professional boxing contests currently
subject to the privilege tax imposed by Section 60-2A-23 NMSA 1978 (Privilege
Tax on Promotions). The measure would
also amend Section 60-2A-23 to increase the privilege tax imposed on promoters
from four to five percent of total gross receipts from professional contests
conducted live in
FISCAL
IMPLICATIONS
Gross receipts tax
impacts of this proposal are as shown.
TRD did not estimate fiscal impacts associated with amendments to the
privilege tax. The Athletic Commission of the New Mexico Regulation and
Licensing Department reports that collections from the 4% privilege tax are
quite volatile, but average about $70 thousand per year. Hence this estimate assumes that promoters
will generate roughly $1.75 million in taxable gross receipts in fiscal year
2004.
OTHER
SUBSTANTIVE ISSUES
TRD notes that the
“privilege tax” of 4% of gross receipts from professional athletic competitions
is appropriated to the New Mexico Athletic Commission, and is used by that
commission in regulating and licensing the industry. Thus, the 4% privilege tax may be considered
a cost of doing business as a promoter, not a general tax. The gross receipts
tax, simultaneously imposed on professional athletic competitions is the
contribution of the activity to the general support of government services,
including public schools, higher education, courts and corrections, among other
state and local government services.
SS/njw