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

SPONSOR Rawson

DATE TYPED 03/03/05 HB

SHORT TITLE Repeal Of Federal Telecommunications Tax

SB SM 19

ANALYST Padilla-Jackson

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

NFI

NFI

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

None.

SUMMARY

Synopsis of Bill

Senate Memorial 19 requests that United States Senators representing New Mexico support the

repeal of the federal excise tax on telecommunications.

Significant Issues

The memorial suggests that the tax was introduced as a luxury tax, and that telephone service is

no longer a luxury. Additionally, the memorial calls the tax a regressive tax in that it requires

low-income Americans to pay a higher percentage of their income than high-income Americans.

FISCAL IMPLICATIONS

There are no fiscal impacts associated with the memorial, though if the federal excise tax on

telecommunication was repealed there would be a fiscal impact

OPJ/lg