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	02-17-04		HB
SHORT TITLE		Gross Receipts on Sales to Prison Inmates				SB	572
					ANALYST		Taylor

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY04	FY05	Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
	47.0	Similar	Recurring	Public Project Revolving Fund (NMFA)
	9.0	Similar	Recurring	Youth Conservation Coprs (EMNRD)
	6.0	Similar	Recurring	State Parks and Rec. Capital Improvement (EMNRD)
	1.0	Similar	Recurring	Office of Cultural Affairs

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Response Received From

Taxation and Revenue Department

SUMMARY

Senate Bill 572 imposes the governmental gross receipts tax on sales of tangible personal property by the corrections department to inmates of corrections facilities.

FISCAL IMPLICATIONS

Receipts from sales to inmates total approximately $1.25 million, according to information that the Corrections Department provided to TRD. Multiplying $1.25 million by the 5 percent governmental gross receipts rate implies that the tax would raise nearly $63 million. This is distributed to the various recipients in the revenue table.

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