HB 667

Page 1

AN ACT

RELATING TO TAX ADMINISTRATION; IDENTIFYING TAX PROVISIONS

SUBJECT TO THE TAX ADMINISTRATION ACT; PERMITTING DISCLOSURE

OF CERTAIN RECORDS OR CREDITS THAT THE DEPARTMENT IS REQUIRED

TO MAKE AVAILABLE FOR PUBLIC INSPECTION; RECONCILING MULTIPLE

AMENDMENTS TO THE SAME SECTION OF LAW IN LAWS 2005.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 7-1-2 NMSA 1978 (being Laws 1965,

Chapter 248, Section 2, as amended) is amended to read:

"7-1-2. APPLICABILITY.--The Tax Administration Act

applies to and governs:

A. the administration and enforcement of the

following taxes or tax acts as they now exist or may hereafter

be amended:

(1) Income Tax Act;

(2) Withholding Tax Act;

(3) Venture Capital Investment Act;

(4) Gross Receipts and Compensating Tax Act

and any state gross receipts tax;

(5) Liquor Excise Tax Act;

(6) Local Liquor Excise Tax Act;

(7) any municipal local option gross

receipts tax;

(8) any county local option gross receipts

HB 667

Page 2

tax;

(9) Special Fuels Supplier Tax Act;

(10) Gasoline Tax Act;

(11) petroleum products loading fee, which

fee shall be considered a tax for the purpose of the Tax

Administration Act;

(12) Alternative Fuel Tax Act;

(13) Cigarette Tax Act;

(14) Estate Tax Act;

(15) Railroad Car Company Tax Act;

(16) Investment Credit Act, rural job tax

credit, Laboratory Partnership with Small Business Tax Credit

Act, Technology Jobs Tax Credit Act, film production tax

credit, New Mexico filmmaker tax credit, Affordable Housing

Tax Credit Act, high-wage jobs tax credit and Research and

Development Small Business Tax Credit Act;

(17) Corporate Income and Franchise Tax Act;

(18) Uniform Division of Income for Tax

Purposes Act;

(19) Multistate Tax Compact;

(20) Tobacco Products Tax Act; and

(21) the telecommunications relay service

surcharge imposed by Section 63-9F-11 NMSA 1978, which

surcharge shall be considered a tax for the purposes of the

Tax Administration Act;

HB 667

Page 3

B. the administration and enforcement of the

following taxes, surtaxes, advanced payments or tax acts as

they now exist or may hereafter be amended:

(1) Resources Excise Tax Act;

(2) Severance Tax Act;

(3) any severance surtax;

(4) Oil and Gas Severance Tax Act;

(5) Oil and Gas Conservation Tax Act;

(6) Oil and Gas Emergency School Tax Act;

(7) Oil and Gas Ad Valorem Production Tax

Act;

(8) Natural Gas Processors Tax Act;

(9) Oil and Gas Production Equipment Ad

Valorem Tax Act;

(10) Copper Production Ad Valorem Tax Act;

(11) any advance payment required to be made

by any act specified in this subsection, which advance payment

shall be considered a tax for the purposes of the Tax

Administration Act;

(12) Enhanced Oil Recovery Act;

(13) Natural Gas and Crude Oil Production

Incentive Act; and

(14) intergovernmental production tax credit

and intergovernmental production equipment tax credit;

C. the administration and enforcement of the

HB 667

Page 4

following taxes, surcharges, fees or acts as they now exist or

may hereafter be amended:

(1) Weight Distance Tax Act;

(2) the workers' compensation fee authorized

by Section 52-5-19 NMSA 1978, which fee shall be considered a

tax for purposes of the Tax Administration Act;

(3) Uniform Unclaimed Property Act (1995);

(4) 911 emergency surcharge and the network

and database surcharge, which surcharges shall be considered

taxes for purposes of the Tax Administration Act;

(5) the solid waste assessment fee

authorized by the Solid Waste Act, which fee shall be

considered a tax for purposes of the Tax Administration Act;

(6) the water conservation fee imposed by

Section 74-1-13 NMSA 1978, which fee shall be considered a tax

for the purposes of the Tax Administration Act; and

(7) the gaming tax imposed pursuant to the

Gaming Control Act; and

D. the administration and enforcement of all other

laws, with respect to which the department is charged with

responsibilities pursuant to the Tax Administration Act, but

only to the extent that the other laws do not conflict with

the Tax Administration Act."

Section 2. Section 7-1-8 NMSA 1978 (being Laws 1965,

Chapter 248, Section 13, as amended by Laws 2005, Chapter 107,

HB 667

Page 5

Section 1 and by Laws 2005, Chapter 108, Section 2 and also by

Laws 2005, Chapter 109, Section 2) is amended to read:

"7-1-8. CONFIDENTIALITY OF RETURNS AND OTHER

INFORMATION.--It is unlawful for an employee of the department

or a former employee of the department to reveal to an

individual other than another employee of the department

information contained in the return of a taxpayer made

pursuant to a law subject to administration and enforcement

under the provisions of the Tax Administration Act or any

other information about a taxpayer acquired as a result of the

employee's employment by the department and not available from

public sources, except:

A. to an authorized representative of another

state; provided that the receiving state has entered into a

written agreement with the department to use the information

for tax purposes only and that the receiving state has enacted

a confidentiality statute similar to this section to which the

representative is subject;

B. to a representative of the secretary of the

treasury or the secretary's delegate pursuant to the terms of

a reciprocal agreement entered into with the federal

government for exchange of the information;

C. to the multistate tax commission, the

federation of tax administrators or their authorized

representatives; provided that the information is used for tax

HB 667

Page 6

purposes only and is disclosed by the multistate tax

commission or the federation of tax administrators only to

states that have met the requirements of Subsection A of this

section;

D. to another jurisdiction pursuant to an

international fuel tax agreement; provided that the

information is used for tax purposes only;

E. to a district court, an appellate court or a

federal court:

(1) in response to an order thereof in an

action relating to taxes or an action for tax fraud or any

other crime that may affect taxes due to the state to which

the state is a party and in which the information sought is

about a taxpayer who is party to the action and is material to

the inquiry, in which case only that information may be

required to be produced in court and admitted in evidence

subject to court order protecting the confidentiality of the

information and no more;

(2) in an action in which the department is

attempting to enforce an act with which the department is

charged or to collect a tax; or

(3) in any matter in which the department is

a party and the taxpayer has put the taxpayer's own liability

for taxes at issue, in which case only that information

regarding the taxpayer who is party to the action may be

HB 667

Page 7

produced, but this shall not prevent the disclosure of

department policy or interpretation of law arising from

circumstances of a taxpayer who is not a party;

F. to the taxpayer or to the taxpayer's authorized

representative; provided, however, that nothing in this

subsection shall be construed to require any employee to

testify in a judicial proceeding except as provided in

Subsection E of this section;

G. information obtained through the administration

of a law not subject to administration and enforcement under

the provisions of the Tax Administration Act to the extent

that release of that information is not otherwise prohibited

by law;

H. in a manner, for statistical purposes, that the

information revealed is not identified as applicable to an

individual taxpayer;

I. with reference to information concerning the

tax on tobacco imposed by Sections 7-12-1 through 7-12-13,

7-12-15 and 7-12-17 NMSA 1978 to a committee of the

legislature for a valid legislative purpose or to the attorney

general for purposes of Section 6-4-13 NMSA 1978 and the

master settlement agreement defined in Section 6-4-12 NMSA

1978;

J. to a transferee, assignee, buyer or lessor of a

liquor license, the amount and basis of an unpaid assessment

HB 667

Page 8

of tax for which the transferor, assignor, seller or lessee is

liable;

K. to a purchaser of a business as provided in

Sections 7-1-61 through 7-1-63 NMSA 1978, the amount and basis

of an unpaid assessment of tax for which the purchaser's

seller is liable;

L. to a municipality of this state upon its

request for a period specified by that municipality within the

twelve months preceding the request for the information by

that municipality:

(1) the names, taxpayer identification

numbers and addresses of registered gross receipts taxpayers

reporting gross receipts for that municipality under the Gross

Receipts and Compensating Tax Act or a local option gross

receipts tax imposed by that municipality. The department may

also release the information described in this paragraph

quarterly or upon such other periodic basis as the secretary

and the municipality may agree; and

(2) information indicating whether persons

shown on a list of businesses located within that municipality

furnished by the municipality have reported gross receipts to

the department but have not reported gross receipts for that

municipality under the Gross Receipts and Compensating Tax Act

or a local option gross receipts tax imposed by that

municipality.

HB 667

Page 9

The employees of municipalities receiving information as

provided in this subsection shall be subject to the penalty

contained in Section 7-1-76 NMSA 1978 if that information is

revealed to individuals other than other employees of the

municipality in question or the department;

M. to the commissioner of public lands for use in

auditing that pertains to rentals, royalties, fees and other

payments due the state under land sale, land lease or other

land use contracts; the commissioner of public lands and

employees of the commissioner are subject to the same

provisions regarding confidentiality of information as

employees of the department;

N. the department shall furnish, upon request by

the child support enforcement division of the human services

department, the last known address with date of all names

certified to the department as being absent parents of

children receiving public financial assistance. The child

support enforcement division personnel shall use such

information only for the purpose of enforcing the support

liability of the absent parents and shall not use the

information or disclose it for any other purpose; the child

support enforcement division and its employees are subject to

the provisions of this section with respect to any information

acquired from the department;

O. the department shall furnish to the information

HB 667

Page 10

systems division of the general services department, by

electronic media, a database containing New Mexico personal

income tax filers by county, which shall be updated quarterly.

The database information shall be used only for the purpose of

producing the random jury list for the selection of petit or

grand jurors for the state courts pursuant to Section 38-5-3

NMSA 1978. The database shall not contain any financial

information. If any information in the database is revealed

by an employee of the administrative office of the courts or

the information systems division to individuals other than

employees of the administrative office of the courts, the

state courts, the information systems division or the

department, the employee shall be subject to the penalty

provisions of Section 7-1-76 NMSA 1978;

P. with respect to the tax on gasoline imposed by

the Gasoline Tax Act, the department shall make available for

public inspection at monthly intervals a report covering the

number of gallons of gasoline and ethanol blended fuels

received and deducted and the amount of tax paid by each

person required to file a gasoline tax return or pay gasoline

tax in the state of New Mexico;

Q. the identity of a rack operator, importer,

blender, supplier or distributor and the number of gallons

reported on returns required under the Gasoline Tax Act,

Special Fuels Supplier Tax Act or Alternative Fuel Tax Act to

HB 667

Page 11

a rack operator, importer, blender, distributor or supplier,

but only when it is necessary to enable the department to

carry out its duties under the Gasoline Tax Act, the Special

Fuels Supplier Tax Act or the Alternative Fuel Tax Act;

R. the department shall release upon request only

the names and addresses of all gasoline or special fuel

distributors, wholesalers and retailers to the New Mexico

department of agriculture, the employees of which are thereby

subject to the penalty contained in Section 7-1-76 NMSA 1978

if that information is revealed to individuals other than

employees of either the New Mexico department of agriculture

or the department;

S. the department shall answer all inquiries

concerning whether a person is or is not a registered taxpayer

for tax programs that require registration, but nothing in

this subsection shall be construed to allow the department to

answer inquiries concerning whether a person has filed a tax

return;

T. upon request of a municipality or county of

this state, the department shall permit officials or employees

of the municipality or county to inspect the records of the

department pertaining to an increase or decrease to a

distribution or transfer made pursuant to Section 7-1-6.15

NMSA 1978 for the purpose of reviewing the basis for the

increase or decrease. The municipal or county officials or

HB 667

Page 12

employees receiving information provided in this subsection

shall not reveal that information to any person other than

another employee of the municipality or the county, the

department or a district court, an appellate court or a

federal court in a proceeding relating to a disputed

distribution and in which both the state and the municipality

or county are parties. Information provided pursuant to

provisions of this subsection that is revealed other than as

provided in this subsection shall subject the person revealing

the information to the penalty contained in Section 7-1-76

NMSA 1978;

U. to a county of this state that has in effect a

local option gross receipts tax imposed by the county upon its

request for a period specified by that county within the

twelve months preceding the request for the information by

that county:

(1) the names, taxpayer identification

numbers and addresses of registered gross receipts taxpayers

reporting gross receipts either for that county in the case of

a local option gross receipts tax imposed on a countywide

basis or only for the areas of that county outside of any

incorporated municipalities within that county in the case of

a county local option gross receipts tax imposed only in areas

of the county outside of any incorporated municipalities. The

department may also release the information described in this

HB 667

Page 13

paragraph quarterly or upon such other periodic basis as the

secretary and the county may agree;

(2) in the case of a local option gross

receipts tax imposed by a county on a countywide basis,

information indicating whether persons shown on a list of

businesses located within the county furnished by the county

have reported gross receipts to the department but have not

reported gross receipts for that county under the Gross

Receipts and Compensating Tax Act or a local option gross

receipts tax imposed by that county on a countywide basis; and

(3) in the case of a local option gross

receipts tax imposed by a county only on persons engaging in

business in that area of the county outside of incorporated

municipalities, information indicating whether persons on a

list of businesses located in that county outside of the

incorporated municipalities but within that county furnished

by the county have reported gross receipts to the department

but have not reported gross receipts for that county outside

of the incorporated municipalities within that county under

the Gross Receipts and Compensating Tax Act or a local option

gross receipts tax imposed by the county only on persons

engaging in business in that county outside of the

incorporated municipalities.

The officers and employees of counties receiving

information as provided in this subsection shall be subject to

HB 667

Page 14

the penalty contained in Section 7-1-76 NMSA 1978 if the

information is revealed to individuals other than other

officers or employees of the county in question or the

department;

V. to authorized representatives of an Indian

nation, tribe or pueblo, the territory of which is located

wholly or partially within New Mexico, pursuant to the terms

of a reciprocal agreement entered into with the Indian nation,

tribe or pueblo for the exchange of that information for tax

purposes only; provided that the Indian nation, tribe or

pueblo has enacted a confidentiality statute similar to this

section;

W. information with respect to the taxes or tax

acts administered pursuant to Subsection B of Section 7-1-2

NMSA 1978, except that:

(1) information for or relating to a period

prior to July 1, 1985 with respect to Sections 7-25-1 through

7-25-9 and 7-26-1 through 7-26-8 NMSA 1978 may be released

only to a committee of the legislature for a valid legislative

purpose;

(2) except as provided in Paragraph (3) of

this subsection, contracts and other agreements between the

taxpayer and other parties and the proprietary information

contained in those contracts and agreements shall not be

released without the consent of all parties to the contract or

HB 667

Page 15

agreement; and

(3) audit workpapers and the proprietary

information contained in the workpapers shall not be released

except to:

(a) the minerals management service of

the United States department of the interior, if production

occurred on federal land;

(b) a person having a legal interest in

the property that is subject to the audit;

(c) a purchaser of products severed

from a property subject to the audit; or

(d) the authorized representative of

any of the persons in Subparagraphs (a) through (c) of this

paragraph. This paragraph does not prohibit the release of

proprietary information contained in the workpapers that is

also available from returns or from other sources not subject

to the provisions of this section;

X. information with respect to the taxes,

surtaxes, advance payments or tax acts administered pursuant

to Subsection C of Section 7-1-2 NMSA 1978;

Y. to the public regulation commission,

information with respect to the Corporate Income and Franchise

Tax Act required to enable the commission to carry out its

duties;

Z. to the state racing commission, information

HB 667

Page 16

with respect to the state, municipal and county gross receipts

taxes paid by racetracks;

AA. upon request of a corporation authorized to be

formed under the Educational Assistance Act, the department

shall furnish the last known address and the date of that

address of every person certified to the department as an

absent obligor of an educational debt due and owed to the

corporation or that the corporation has lawfully contracted to

collect. The corporation and its officers and employees shall

use that information only to enforce the educational debt

obligation of the absent obligors and shall not disclose that

information or use it for any other purpose;

BB. a decision and order made by a hearing officer

pursuant to Section 7-1-24 NMSA 1978 with respect to a protest

filed with the secretary on or after July 1, 1993;

CC. information required by a provision of the Tax

Administration Act to be made available to the public by the

department;

DD. upon request by the Bernalillo county

metropolitan court, the department shall furnish the last

known address and the date of that address for every person

the court certifies to the department as a person who owes

fines, fees or costs to the court or who has failed to appear

pursuant to a court order or a promise to appear;

EE. upon request by a magistrate court, the

HB 667

Page 17

department shall furnish the last known address and the date

of that address for every person the court certifies to the

department as a person who owes fines, fees or costs to the

court or who has failed to appear pursuant to a court order or

a promise to appear;

FF. to the national tax administration agencies of

Mexico and Canada; provided the agency receiving the

information has entered into a written agreement with the

department to use the information for tax purposes only and is

subject to a confidentiality statute similar to this section;

GG. to a district attorney, a state district court

grand jury or federal grand jury for an investigation of or

proceeding related to an alleged criminal violation of the tax

laws;

HH. to a third party subject to a subpoena or levy

issued pursuant to the provisions of the Tax Administration

Act, the identity of the taxpayer involved, the taxes or tax

acts involved and the nature of the proceeding;

II. to the gaming control board, tax returns of

license applicants and their affiliates as provided in

Subsection E of Section 60-2E-14 NMSA 1978;

JJ. any written ruling on questions of evidence or

procedure made by a hearing officer pursuant to Section 7-1-24

NMSA 1978; provided that the name and identification number of

the taxpayer requesting the ruling shall not be disclosed;

HB 667

Page 18

KK. to representatives of the workers'

compensation administration, authorized by the director of the

workers' compensation administration for this purpose, to

facilitate the identification of taxpayers that are delinquent

or noncompliant in payment of fees required by Section

52-1-9.1 or 52-5-19 NMSA 1978;

LL. to the secretary of labor or the secretary's

delegate for use in enforcement of unemployment insurance

collections pursuant to the terms of a reciprocal agreement

entered into with the secretary of labor for exchange of

information; the secretary of labor and employees of the labor

department are subject to the provisions regarding

confidentiality of information contained in the Tax

Administration Act;

MM. information that the department is authorized

by the Tax Administration Act to release to a local body that

licenses professions or occupations pursuant to Chapter 36,

Article 2 NMSA 1978 or Chapter 61 NMSA 1978; and

NN. upon request for inspection by the public

pursuant to Section 7-1-29 NMSA 1978, the department shall

furnish the taxpayer name, refund or credit amount, tax

program or business tax credit and the date the refund or

credit was issued; nothing in this subsection shall be

construed to require the release of information that would

violate an agreement between the state and the federal

internal revenue service for sharing of information or any

provision or rule of the federal Internal Revenue Code to

which a state is subject."

HB 667

Page 19