Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us). Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

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

SPONSOR	Zanetti		DATE TYPED	2/13/04		HJM	45
SHORT TITLE		Congressional Ban on Internet Access Taxes				SB
					ANALYST		Neel

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY04	FY05
		NFI

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Response Received From

Economic Development Department (EDD)

SUMMARY

Synopsis of Bill

House Joint Memorial 45 establishes a formal request by the legislature of the State of New Mexico that Congress approve a clean, permanent and technologically neutral extension of the Internet tax moratorium, and that copies of this memorial be transmitted to the members of New Mexico's congressional delegation.

FISCAL IMPLICATIONS

The EDD cites the following:

It appears that the existence of a tax free environment on Internet access has assisted in the Internet’s rapid growth. However, as the Internet expands, more business services are beginning to converge with Internet technology. Some of these services may be taxable. Congress has debated this issue at length, but has not been able to arrive at a consensus.

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