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	Youngberg		DATE TYPED	2-4-04		HJM	64
SHORT TITLE		Support Permanent Estate Tax Repeal				SB
					ANALYST		Neel

REVENUE

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

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

House Joint Resolution 64 requests New Mexico’s congressional delegation support the permanent repeal of the estate tax.

Significant Issues

The federal estate tax is currently scheduled to be phased out in the year 2010, but then to be re-instated in 2011. The state’s collections of estate tax are based on a section of federal law which essentially permits the states to collect a portion of the federal estate tax. That section of federal law is being phased out, and the state will no longer collect estate taxes after FY 2005 without structural changes to their own taxes.

FISCAL IMPLICATIONS

The Consensus Revenue Estimating Groups current forecast for FY04 is $8 million and $2.8 million in FY05. There after it is repealed.