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

SPONSOR B. Lujan

ORIGINAL DATE

LAST UPDATED

01/22/07

01/31/07 HB 238

SHORT TITLE Increase Interim Tax Committee Membership

SB

ANALYST Hanika Ortiz

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

House Bill 238 increases membership of the Interim Revenue Stabilization and Tax Policy

Committee (RSTPC) to 10 members from each house as opposed to 9 under current law.

FISCAL IMPLICATIONS

No impact on state or local revenues.

SIGNIFICANT ISSUES

Pursuant to Section 2-16-3 NMSA 1978, the committee is directed to examine the statutes,

constitutional provisions, regulations and court decisions governing revenue stabilization and tax

policy in New Mexico and recommend legislation or changes if any are found to be necessary.

OTHER SUBSTANTIVE ISSUES

In 2006, the committee’s focus included:

1.

reviewing the adequacy of state revenues, including the adequacy of the tax base in

House Bill 238 – Page

2

years without windfalls or surpluses and the state’s ability to generate revenue from

the current tax system; identify the most important tax issues for businesses and

establish a timetable to address them; and discuss the most beneficial way to address

windfall revenues;

2.

review the effectiveness of the current tax structure, including working with the

Taxation and Revenue Department to establish a tax expenditure report to identify the

impact of various tax changes;

3.

examine the fairness and equity of the of the tax structure, including an examination

of the balance of revenue collections from property taxes, corporate income taxes and

gross receipts taxes; and examine the adequacy of local taxes and distribution of taxes

between the state and local governments; and

4.

monitor the price of oil and gas, the price of gasoline and the stability of revenue

from the gasoline tax and the adequacy of collections in providing for the costs of

road construction and maintenance.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

The RSTPC will continue to be composed of eighteen members with 9 members from each

house.

AHO/mt