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	Whitaker		DATE TYPED	1/29/2004		HB	82
SHORT TITLE		Corporate Income and Franchise Tax Corrections				SB
					ANALYST		Taylor

REVENUE

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

SOURCES OF INFORMATION

LFC Files

Response Received From

Taxation and Revenue Department

SUMMARY

HB 82, introduced on behalf of the Revenue Stabilization and Tax Policy Committee, proposes technical corrections to the corporate income and franchise tax act. Current law requires taxpayers owing $5 thousand in corporate income taxes in the current year to make estimated payments. The bill amends the payment schedule by making a quarterly payment due on the fifteenth day of the taxable year. The current schedule has dates for the second, third and fourth quarter but skips the first quarter. The bill also adds a provision that providing that taxes withheld under the Oil and Gas Proceeds Withholding Tax Act shall be considered estimate payments for purposes of the Corporate Income Tax Act.

FISCAL IMPLICATIONS

TRD reports that there are no fiscal impacts associated with this bill.

ADMINISTRATIVE IMPLICATIONS

TRD reports the following administrative impact:

Administrative cost of the measure would be relatively modest. Provisions of the proposal could be administered with resources currently available to the Department. However, allowing oil and gas payments to be treated as estimated payments will make it more difficult to program a computer to assess penalty and interest on late estimated payments.

BT/lg