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F I S C A L I M P A C T R E P O R T

SPONSOR Griego

DATE TYPED 03/08/05 HB

SHORT TITLE Income Tax Contributions To Parks Division

SB 310

ANALYST Padilla-Jackson

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$12.0

$25.0

Recurring

EMNRD

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

$12.0

$25.0

Similar Recurring

EMNRD, State

Parks Division

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Taxation and Revenue (TRD)

Energy, Minerals and Natural Resources Department (EMNRD)

SUMMARY

Synopsis of Bill

Senate Bill 310 would allow taxpayers to designate a portion of their income tax refund to the

state parks division of EMRD for the kids in parks education program. The bill calls for a distri-

bution to EMNRD in an amount equal to the total amount designated by taxpayers and EMNRD

would remit the amount to the state parks division for expenditure for the kids in parks education

program.

The provisions of this bill are applicable to taxable years beginning on or after January 1, 2005.

Senate Bill 310 -- Page 2

Significant Issues

EMNRD State Parks Division (SPD) supports this bill. They note that a voluntary contribution

option would provide New Mexico residents an easy way to support their state parks’ children

educational programs without raising taxes or visitor fees.

PERFORMANCE IMPLICATIONS

SPD notes that it continues to face serious shortfalls self-generated revenue has been down in the

past few years due to the low water levels statewide, affecting revenue and visitation. They add

that the bill could potentially increase statewide visitation and day use fees through the promo-

tional effect of being on the PIT form.

FISCAL IMPLICATIONS

The total fiscal impact, as per TRD’s analysis, is $25 thousand for FY06 to EMNRD State Parks

Division. In light of the applicable date of January 1, 2005, the FY05 fiscal impact is calculated

to be 50 percent of the full-year fiscal impact. TRD’s fiscal impact uses the approximate average

of tax year 2003 contributions to the Forest Re-Leaf Program and the Share with Wildlife pro-

gram. See TRD’s fiscal impact report for a table of 2003 donations by filing status.

ADMINISTRATIVE IMPLICATIONS

This bill would have minor administrative impacts for TRD.

OPJ/lg