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

SPONSOR Lujan

ORIGINAL DATE

LAST UPDATED

2/3/06

HB 865

SHORT TITLE Gross Receipts Exemptions & Deductions

SB

ANALYST Schardin

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

House Bill 865 makes technical changes to Sections 7-9-12 and 7-9-45 NMSA 1978 so that all

exemptions and deductions to the gross receipts and compensating taxes are referenced in these

sections.

SIGNIFICANT ISSUES

The sections of statute amended by this bill provide comprehensive lists of the state’s gross re-

ceipts and compensating tax deductions and exemptions. In recent years, the legislature has en-

acted several of these deductions and exemptions without amending these sections to reflect their

creation.

SS/mt