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.

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

SPONSOR Campos

DATE TYPED 3-01-2005 HB

SHORT TITLE Athletic Event Official Gross Receipts

SB 571

ANALYST Padilla-Jackson

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

($30.0)

Similar Recurring

General Fund

($20.0)

Similar Recurring Local Governments

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

Senate Bill 571 provides a gross receipts tax exemption for receipts from refereeing, umpiring,

scoring and other athletic officiating at sporting events in New Mexico.

The bill has no effective date.

FISCAL IMPLICATIONS

The total fiscal impact of this bill is -$50 thousand in FY06, of which -$30 thousand will impact

the General Fund and -$20 will impact local governments. TRD’s analysis assumed a total tax

base of $750 thousand per year, which implies an average gross receipts tax rate of 6.7 percent.

TECHNICAL ISSUES

TRD notes that the bill has a drafting error. On page 1, line 18 should be “receipts from referee-

ing…”, not “receipts of refereeing…”. They add that “Officiating” is a very broad term. De-

pending upon the intent, it may be best to narrow the exemption by defining “officiating”.

OJP/yr:lg