SENATE BILL 15
48th legislature - STATE OF NEW MEXICO - second special session, 2008
INTRODUCED BY
John C. Ryan
AN ACT
RELATING TO THE STATE FISC; AMENDING PROVISIONS REGARDING DISPOSITION OF EXCESS GENERAL FUND REVENUES; ESTABLISHING AN OBLIGATION TO PAY A TAXPAYER DIVIDEND WHEN CERTAIN CONDITIONS ARE MET; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 6-4-4 NMSA 1978 (being Laws 1987, Chapter 347, Section 4, as amended) is amended to read:
"6-4-4. RESERVATION OF EXCESS GENERAL FUND REVENUES--APPROPRIATION TO TAXPAYERS DIVIDEND FUND.--
A. For [the seventy-seventh] fiscal year 2009 and subsequent fiscal years, if the revenues of the general fund exceed the total of appropriations from the general fund, [the excess revenue] then an amount equal to the smaller of the amount of the excess revenue or two percent of the aggregate recurring appropriations from the general fund for the previous fiscal year is appropriated to the taxpayers dividend fund.
B. Excess general fund revenue above the amount appropriated to the taxpayers dividend fund pursuant to Subsection A of this section shall be transferred to the operating reserve; provided that if the sum of the excess revenue transferred to the operating reserve plus the balance in the operating reserve prior to the transfer is greater than eight percent of the aggregate recurring appropriations from the general fund for the previous fiscal year, then an amount equal to the smaller of either the amount of the excess revenue transferred to the operating reserve or the difference between the sum and eight percent of the aggregate recurring appropriations from the general fund for the previous fiscal year shall be transferred to the tax stabilization reserve [provided further that if the total of the amount transferred to the tax stabilization reserve pursuant to the provisions of this section plus the balance in that reserve prior to the transfer is greater than six percent of the aggregate recurring appropriations from the general fund for the previous fiscal year, then an amount equal to the smaller of either the amount transferred or the difference between the total and six percent of the aggregate recurring appropriation from the general fund for the previous fiscal year is appropriated to the taxpayers dividend fund]."
Section 2. Section 6-4-5 NMSA 1978 (being Laws 1987, Chapter 347, Section 5) is amended to read:
"6-4-5. TAXPAYERS DIVIDEND FUND--CREATED--PURPOSE.--
A. There is created [hereby] in the state treasury the "taxpayers dividend fund". The fund shall be administered by the taxation and revenue department. Money in the fund shall be expended only for the purpose of a distribution to taxpayers pursuant to the provisions of this section.
B. The balance of the taxpayers dividend fund shall be those funds directed to it by law and such other funds as the legislature may appropriate from time to time to the fund.
C. If the balance in the taxpayers dividend fund [at the end of the seventy-sixth or any subsequent fiscal year exceeds one percent of the tax liabilities reported to the taxation and revenue department pursuant to the Income Tax Act during that fiscal year, then the governor shall propose to the next session of the legislature a method for refunding the balance to the taxpayers.
D. Balances in the taxpayers dividend fund may be appropriated only for the purpose of refunding those balances to the taxpayers] exceeds one hundred million dollars ($100,000,000), then the taxation and revenue department shall within ninety days make a distribution to taxpayers of the balance in the taxpayers dividend fund, pursuant to the provisions of the Tax Administration Act. The distribution shall be known as the "taxpayer dividend"."
Section 3. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] TAXPAYER DIVIDEND--DISTRIBUTION.--
A. When the balance in the taxpayers dividend fund is sufficient to require a distribution to taxpayers pursuant to Subsection C of Section 6-4-5 NMSA 1978, the taxation and revenue department shall distribute the balance in the fund to eligible taxpayers pursuant to the provisions of this section. The distribution shall be known as the "taxpayer dividend".
B. Each resident of New Mexico who filed a New Mexico personal income tax return for the prior taxable year, was a resident of New Mexico on the last day of the prior taxable year, was not an inmate of a public institution for more than six months during the prior taxable year and who is not a dependent of another taxpayer is eligible to receive one or more taxpayer dividends and shall be known for the purposes of this section as an "eligible taxpayer". A resident may be an eligible taxpayer even if the resident had no income taxable pursuant to the Income Tax Act in the prior taxable year.
C. The department shall calculate the amount of the taxpayer dividend by dividing the balance in the taxpayer dividend fund available for distribution by the total number of federal exemptions allowable for federal income tax purposes reported on New Mexico personal income tax returns filed by eligible taxpayers for the prior taxable year.
D. The number of taxpayer dividends payable to an eligible taxpayer shall be the same as the number of federal exemptions allowable for federal income tax purposes reported on the New Mexico personal income tax return filed by the eligible taxpayer for the prior taxable year.
E. The secretary of taxation and revenue may adopt regulations necessary to administer the provisions of this section."
Section 4. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
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