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F I S C A L I M P A C T R E P O R T
SPONSOR Papen
DATE TYPED 01/31/05 HB
SHORT TITLE Tax Deductions For Certain School Events
SB 248
ANALYST Padilla-Jackson
REVENUE
Estimated Revenue
Subsequent
Years Impact
Recurring
or Non-Rec
Fund
Affected
FY05
FY06
($80.0)
Increasing Recurring
General Fund
($50.0)
Increasing Recurring Local Governments
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
Senate Bill 248 would allow taxpayers to deduct from gross receipts tax, any receipts from ad-
mission to nonathletic special events held at a venue that is a post-secondary educational institu-
tion located within 50 miles of the state border and that accommodates at least 2,500 people.
The effective date of the provisions of this act is July 1, 2005.
FISCAL IMPLICATIONS
The TRD analysis provided shows a total fiscal impact of $130 thousand in FY06 ($80 thousand
impact to the general fund and $50 thousand impact to local governments. In light of the bill’s
requirement that the post-secondary educational institution is, “within 50 miles of the state bor-
der”, TRD analysis assumed the tax deduction applies to receipts of private contractors leasing
facilities for non-athletic events at Eastern New Mexico University and at New Mexico State
University. The estimate for total revenue from these contracts is $2 million per year. Utilizing