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

 

 

 

SPONSOR:

Boykin

 

DATE TYPED:

1/27/03

 

HB

126

 

SHORT TITLE:

Amend Gross Receipts Act

 

SB

 

 

 

ANALYST:

Smith

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

NFI

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

 

Responses Received From

 

TRD

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 126 reorganizes certain gross receipts and compensating tax sections. TRD has provided the following section-by-section analysis:

 

Section 1 makes citations in Section 7-1-55 NMSA 1978 (Contractor’s Bond for Gross Receipts Tax) to conform with the proposed changes to the definition Section of the GR&CTA.

 

Section 2 removes the definitions of “construction”, “engaging in business”, “gross receipts”,  “prescription drugs”, and “construction material” from Section 7-9-3 NMSA 1978 and reorganizes the remaining definitions in alphabetical order.

 

Section 3 adds a new section (7-9-3.1) for the purpose of defining “gross receipts”.  The definition is amended to incorporate the additional definitions of gross receipts currently contained in Section 7-9-3.3 relating to mobile telecommunications services.

 

Section 4 repeals Section 7-9-3.3 (additional definitions relating to mobile telecommunications services) and replaces it with a new section to define “engaging in business”.  The definition is not altered from the current definition.

Section 5 adds a new section (7-9-3.4) defining “construction” and “construction material”.  The definition of construction material is not altered from the current definition. In the definition of construction on p. 23, line 20 [Section 7-9-3.4(A)(1)(m)] a comma is inserted between the words “fence” and “gate”.  

 

Section 6 makes a technical correction to Section 7-9-54 NMSA 1978. 

 

Section 7 amends Section 7-9-73.2 (Deduction-Gross Receipts Tax and Governmental Gross Receipts Tax-Prescription Drugs) to include the definition of “prescription drugs”.  The definition is not altered from the current definition. 

 

     Significant Issues

 

This bill was adopted by the Revenue Stabilization and Tax Policy Committee during the interim. The point of this legislation is to avoid tracking and signing order problems with the many changes annually made to the Gross Receipts and Compensating Tax Act .

 

SS/njw