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	Foley		DATE TYPED	2-12-04		HB	512
SHORT TITLE		Coal for Electric Generation Gross Receipts				SB
					ANALYST		Neel

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY04	FY05
		See Narrative	Recurring	General Fund
		See Narrative	Recurring	Local Government

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

No Response Received From:

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

House Bill 512 amends the Gross Receipts and Compensating Act to allow a deduction for the sale of coal used in the generation of electricity in New Mexico.

FISCAL IMPLICATIONS

According to the information provided in the Blue Ribbon Tax Commission, the cost of providing a GRT deduction for power plants dedicated to the wholesale power market would be approximately $4 million per year; this does not directly relate to HB 512, it implies that the fiscal impact would be significantly higher than $4 million.

BT/lg:dm