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committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
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F I S C A L I M P A C T R E P O R T
SPONSOR SFC
ORIGINAL DATE
LAST UPDATED
2/6/06
2/7/06 HB
SHORT TITLE Public Peace, Health, Safety & Welfare
SB 790/SFCS/aSFL#1
ANALYST Francis
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
FY08
(32.0)
(32.0)
(32.0) Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of SFI#1 Amendment
Senate Floor Amendment #1 amended the substitute for Senate Bill 790 to clarify the affected
tax year. The amendment makes the substitute effective for tax year 2005 rather than 2006. The
amendment also declares an emergency making the bill effective upon signing into chapter.
Synopsis of Original Bill
The Senate Finance Committee substitute for Senate Bill 790 amends the Income Tax Act to ex-
empt New Mexico National Guard premiums paid for group life insurance from personal income
tax by the service member’s life insurance reimbursement fund.
FISCAL IMPLICATIONS
TRD estimates that this exemption will reduce personal income tax revenues by $32 thousand
per tax year. The premiums paid out of the service member’s life insurance reimbursement fund