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F I S C A L I M P A C T R E P O R T
SPONSOR Taylor
ORIGINAL DATE
LAST UPDATED
2/2/07
3/15/07 HB
SHORT TITLE Tolling Time Limit For Tax Court Action
SB 343/aSFL#1/aHTRC
ANALYST Francis
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
FY09
NFI
Recurring General Fund
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to SB795
SOURCES OF INFORMATION
LFC Files
Responses Received From
Energy Minerals and Natural Resources (EMNR)
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of HTRC amendment
The House Taxation and Revenue Committee struck the Senate Floor Amendment to Senate Bill
343, restoring the bill to its original state.
Synopsis of SFL #1
Senate Bill 343 was amended on the Senate Floor to expand the credit to limited liability
companies or business associations. This would allow builders and developers to take advantage
of the credit.
Synopsis of Original Bill
Senate Bill 343 makes several technical corrections to the tax statutes:
Section 1: In the section of the statute governing the secretary of the Taxation and
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Senate Bill 343/aSFL#1/aHTRC – Page
2
Revenue Department’s (TRD) subpoena power, the amendment clarifies that any timeline
for establishing a taxpayer’s liability is suspended while the Secretary’s subpoena is
challenged in court. Current law only refers to a subpoena issued by a court.
Section 2: allows individuals who have apportioned income (“B filers") or who are not
domiciled in NM to use the number of federal exemptions without modification to
determine the amount of LICTR.
Section 3: Clarifies that a married couple filing separately cannot both claim the full
amount of the solar market development credit.
Section 4: Includes the corporate income tax in TRD’s scope for intercepting tax refunds
for taxpayers with debts to another agency that has asked TRD for assistance.
Section 5: Corrects language that used the word “six" to refer to a list of seven items.
FISCAL IMPLICATIONS
The amendment restoring the original cancels the fiscal impact that resulted when solar
systems purchased by businesses were included.
The technical corrections have no fiscal impact. For the solar market development credit, it was
assumed in original estimates that married filing separately filers would only receive one credit.
The Senate Floor amendment may increase the adoption schedule of solar systems which may
increase the amount of credits claimed in FY08.
NF/mt