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 also 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	Smith		DATE TYPED	2/7/2004		HB
SHORT TITLE		Gas Retailer Tax Filing Requirements				SB	413
					ANALYST		Valenzuela

APPROPRIATION

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

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

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Environment Department

No Response Received From

Taxation and Revenue Department

Department of Transportation

SUMMARY

Synopsis of Bill

Senate Bill 413 adds new sections to the Tax Administration Act to provide for penalties for failure to report information returns timely, pursuant to the Gasoline Tax Act or Special Fuels Supplier Tax Act. The bill further amends the Act to provide for the payment of estimated taxes due under the Gasoline Tax Act, the Special Fuels Supplier Act, and the Petroleum Products Loading Fee Act, if a taxpayer paid $25,000 or more the preceding year. SB 413 adds a new section to the Act to require retailers to file information returns on or before the twenty-fifth day of the month following the month in which gasoline is sold in New Mexico. SB 413 amends the Special Fuels Supplier Tax Act to provide for a definition for wholesaler, who would be required to file information returns.

Significant Issues

SB 413 expands reporting requirements to the Taxation and Revenue Department (TRD). The information return filing requirement allows TRD to better track the gallons of exempt gasoline bought and sold. According to the Environment Department, these new sections will create information reporting consistency for these taxpayers in a similar fashion as taxpayers of the gross receipts tax, withholding tax, oil and gas taxes, and the natural gas processors tax. The information return filing requirement under the Gasoline Tax Act allows TRD to better track the gasoline bought by retailers. The amendment to the Special Fuels Supplier Tax Act allows TRD to better track the purchase by non-suppliers of dyed fuel used for off-road purposes (construction site equipment, ranch equipment, or oil well or oil field equipment).

FISCAL IMPLICATIONS

The Taxation and Revenue Department did not respond to a LFC request for bill analysis. Consequently, projecting the potential revenue that could be generated from the bill would be difficult. TRD would need to report an estimate of late filers. The revenue impact is not likely to be significant at it appears the purpose of the bill is to encourage timely reporting of quality data, while simplifying the reporting schedule.

ADMINISTRATIVE IMPLICATIONS

SB 413 would have an administrative impact on TRD.

MFV/yr:lg