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F I S C A L I M P A C T R E P O R T
SPONSOR Boykin
DATE TYPED 3/09/05
HB 1072
SHORT TITLE Amyotrophic Sclerosis Income Tax Contribution
SB
ANALYST Taylor
REVENUE
Estimated Revenue
Subsequent
Years Impact
Recurring
or Non-Rec
Fund
Affected
FY05
FY06
$22.0
Similar Recurring
UNM Regents
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to SB 483
SOURCES OF INFORMATION
LFC Files
Taxation and Revenue Department
Department of Health
SUMMARY
House Bill 1072 creates an optional tax refund contribution for amyotrophic lateral sclerosis
(ALS) research (see substantive issue section for a description of ALS). Taxpayers are allowed
to contribute any portion of their New Mexico state income tax refund to the University Of New
Mexico ALS Center.
The bill does not have an effective date, and is assumed to take effect 90 days after the end of the
legislative session.
FISCAL IMPLICATIONS
Based on TRD’s analysis of similar legislation, it is estimated that this bill would raise approxi-
mately $22 thousand on a full-year basis. The estimate is simply the average of tax year 2003
contributions to existing voluntary contribution funds.
pg_0002
House Bill 1072 -- Page 2
ADMINISTRATIVE IMPLICATIONS
TRD has reported that it would not need any additional resources to administer voluntary contri-
bution refunds.
OTHER SUBSTANTIVE ISSUES
The Department of Health submitted a bill analysis that included the following description of
disease and where more information can be obtained.
Amyotrophic lateral sclerosis (ALS), also called Lou Gehrig's disease, is a progressive,
fatal neurological disease affecting as many as 20,000 Americans with 5,000 new cases
occurring in the United States each year. The disorder belongs to a class of disorders
known as motor neuron diseases. ALS occurs when specific nerve cells in the brain and
spinal cord that control voluntary movement gradually degenerate. The loss of these mo-
tor neurons causes the muscles under their control to weaken and waste away, leading to
paralysis. ALS manifests itself in different ways, depending on which muscles weaken
first. Symptoms may include tripping and falling, loss of motor control in hands and
arms, difficulty speaking, swallowing and/or breathing, persistent fatigue, and twitching
and cramping, sometimes quite severely.
ALS strikes in mid-life. Men are about one-and-a-half times more likely to have the dis-
ease as women. ALS is usually fatal within five years after diagnosis. The goals of ALS
research are to find the cause or causes of ALS, understand the mechanisms involved in
the progression of the disease, and develop effective treatment. (Amyotrophic Lateral
Sclerosis Fact Sheet developed by National Institute of Neurological Disorders and
Stroke, accessed at:
http://www.ninds.nih.gov/disorders/amyotrophiclateralsclerosis/detail_amyotrophiclatera
lsclerosis.htm
).
The Taxation and Revenue Department’s FIR included this report on refund donations:
As indicated below, less than 10,000 (1.2%) of New Mexico's personal income tax re-
turns contain refund donations. Refund contributions to all check-off programs totaled
less than $100,000 in tax year 2003.
pg_0003
Illustration
New Mexico Personal Income Tax, 2003 Tax Year, Schedule D (Donations) Data by Filing Status
Filing Status
Data Category and line on form ()
Joint Single
HoH Separate
Total
Share With Wildlife Contributions (2) 16,186 17,659 3,650 358 37,853
Number of Returns
721 956 215 9 1,901
Veterans Cemetery Fund (3)
9,370 7,243 2,955 148 19,716
Number of Returns
484 468 166 5 1,123
Substance Abuse Fund (4)
5,422 5,029 2,551 38 13,040
Number of Returns
344 408 175 5 932
Forest Re-Leaf (5)
8,220 7,991 1,283 38 17,532
Number of Returns
458 628 119 5 1,210
Political Parties Contribution (6)
5,176 2,600 768 58 8,602
Number of Returns (6a &b)
1,382 1,300 384 29 3,095
Primary Party Democrat
687 742 251 15 1,695
Primary Party Republican
571 324 89 13 997
Primary Party Natural Law
14 37 1 0 52
Primary Party Green
9 21 21 0 51
Spouse Party Democrat
651 0 0 0 651
Spouse Party Republican
521 0 0 0 521
Spouse Party Natural Law
8 0 0 0 8
Spouse Party Green
54 0 0 0 54
Total Contributions (7)
44,374 40,522 11,207 640 96,743
Number of Returns
3,389 3,760 1,059 53 8,261
Information Source: compiled from New Mexico personal income tax returns -- 2003 tax year.
Notes: (1) Figures in parenthesis in Column 1 refer to line on D Form.
(2) Return counts reflect the number of returns where the associated variable, e.g., tax withheld, exceeds zero.
BT/sb