0001| AN ACT | 0002| RELATING TO TAXATION; AMENDING SECTIONS OF THE TAX ADMINISTRATION | 0003| ACT. | 0004| | 0005| 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 | 0006| amended) is amended to read: | 0007| "7-1-2. APPLICABILITY.--The Tax Administration Act applies to and governs: | 0008| A. the administration and enforcement of the following taxes or tax acts as they | 0009| now exist or may hereafter be amended: | 0010| (1) Income Tax Act; | 0011| (2) Withholding Tax Act; | 0012| (3) Gross Receipts and Compensating Tax Act and any state gross | 0013| receipts tax; | 0014| (4) Liquor Excise Tax Act; | 0015| (5) Local Liquor Excise Tax Act; | 0016| (6) Banking and Financial Corporations Tax Act; | 0017| (7) any municipal local option gross receipts tax; | 0018| (8) any county local option gross receipts tax; | 0019| (9) Special Fuels Supplier Tax Act; | 0020| (10) Gasoline Tax Act; | 0021| (11) petroleum products loading fee, which fee shall be considered a tax | 0022| for the purpose of the Tax Administration Act; | 0023| (12) Alternative Fuel Tax Act; | 0024| (13) Cigarette Tax Act; | 0025| (14) Estate Tax Act; | 0001| (15) Railroad Car Company Tax Act; | 0002| (16) Investment Credit Act; | 0003| (17) Corporate Income and Franchise Tax Act; | 0004| (18) Uniform Division of Income for Tax Purposes Act; | 0005| (19) Multistate Tax Compact; | 0006| (20) Tobacco Products Tax Act; | 0007| (21) Filmmaker's Credit Act; and | 0008| (22) the telecommunications relay service surcharge imposed by Section | 0009| 63-9F-11 NMSA 1978, which surcharge shall be considered a tax for the purposes of the Tax | 0010| Administration Act; | 0011| B. the administration and enforcement of the following taxes, surtaxes, advanced | 0012| payments or tax acts as they now exist or may hereafter be amended: | 0013| (1) Resources Excise Tax Act; | 0014| (2) Severance Tax Act; | 0015| (3) any severance surtax; | 0016| (4) Oil and Gas Severance Tax Act; | 0017| (5) Oil and Gas Conservation Tax Act; | 0018| (6) Oil and Gas Emergency School Tax Act; | 0019| (7) Oil and Gas Ad Valorem Production Tax Act; | 0020| (8) Natural Gas Processors Tax Act; | 0021| (9) Oil and Gas Production Equipment Ad Valorem Tax Act; | 0022| (10) Copper Production Ad Valorem Tax Act; and | 0023| (11) any advance payment required to be made by any act specified in | 0024| this subsection, which advance payment shall be considered a tax for the purposes of the Tax | 0025| Administration Act; | 0001| C. the administration and enforcement of the following taxes, surcharges, fees or | 0002| acts as they now exist or may hereafter be amended: | 0003| (1) Weight Distance Tax Act; | 0004| (2) Special Fuels Tax Act; | 0005| (3) the workers' compensation fee authorized by Section 52-5-19 NMSA | 0006| 1978, which fee shall be considered a tax for purposes of the Tax Administration Act; | 0007| (4) Uniform Unclaimed Property Act; | 0008| (5) 911 emergency surcharge and the network and database surcharge, | 0009| which surcharges shall be considered taxes for purposes of the Tax Administration Act; | 0010| (6) the solid waste assessment fee authorized by the Solid Waste Act, | 0011| which fee shall be considered a tax for purposes of the Tax Administration Act; and | 0012| (7) the water conservation fee imposed by Section 74-1-13 NMSA 1978, | 0013| which fee shall be considered a tax for the purposes of the Tax Administration Act; and | 0014| D. the administration and enforcement of all other laws, with respect to which | 0015| the department is charged with responsibilities pursuant to the Tax Administration Act, but only | 0016| to the extent that the other laws do not conflict with the Tax Administration Act." | 0017| Section 2. Section 7-1-6.10 NMSA 1978 (being Laws 1983, Chapter 211, Section 15, as | 0018| amended by Laws 1995, Chapter 6, Section 4 and also by Laws 1995, Chapter 16, Section 11) is | 0019| amended to read: | 0020| "7-1-6.10. DISTRIBUTIONS--STATE ROAD FUND.-- | 0021| A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the | 0022| state road fund in an amount equal to the net receipts attributable to the taxes, surcharges, | 0023| penalties and interest imposed pursuant to the Gasoline Tax Act and to the taxes, surtaxes, fees, | 0024| penalties and interest imposed pursuant to the Special Fuels Tax Act, the Special Fuels Supplier | 0025| Tax Act and the Alternative Fuel Tax Act less: | 0001| (1) the amount distributed to the state aviation fund pursuant to | 0002| Subsection B of Section 7-1-6.7 NMSA 1978; | 0003| (2) the amount distributed to the motorboat fuel tax fund pursuant to | 0004| Section 7-1-6.8 NMSA 1978; | 0005| (3) the amount distributed to municipalities and counties pursuant to | 0006| Subsection A of Section 7-1-6.9 NMSA 1978; | 0007| (4) the amount distributed to the county government road fund pursuant | 0008| to Section 7-1-6.19 NMSA 1978; | 0009| (5) the amount distributed to the local governments road fund pursuant to | 0010| Section 7-1-6.39 NMSA 1978; | 0011| (6) the amount distributed to the municipalities pursuant to Section | 0012| 7-1-6.27 NMSA 1978; and | 0013| (7) the amount distributed to the municipal arterial program of the local | 0014| governments road fund pursuant to Section 7-1-6.28 NMSA 1978. | 0015| B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the | 0016| state road fund in an amount equal to the net receipts attributable to the taxes, fees, interest and | 0017| penalties from the Weight Distance Tax Act." | 0018| Section 3. Section 7-1-8 NMSA 1978 (being Laws 1965, Chapter 248, Section 13, as | 0019| amended by Laws 1993, Chapter 5, Section 3 and also by Laws 1993, Chapter 261, Section 1) is | 0020| amended to read: | 0021| "7-1-8. CONFIDENTIALITY OF RETURNS AND OTHER INFORMATION.--It is | 0022| unlawful for any employee of the department or any former employee of the department to | 0023| reveal to any individual other than another employee of the department any information | 0024| contained in the return of any taxpayer made pursuant to any law subject to administration and | 0025| enforcement under the provisions of the Tax Administration Act or any other information about | 0001| any taxpayer acquired as a result of his employment by the department, except: | 0002| A. to an authorized representative of another state; provided that the receiving | 0003| state has entered into a written agreement with the department to use the information for tax | 0004| purposes only and that the receiving state has enacted a confidentiality statute similar to this | 0005| section to which the representative is subject; | 0006| B. to a representative of the secretary of the treasury or the secretary's delegate | 0007| pursuant to the terms of a reciprocal agreement entered into with the federal government for | 0008| exchange of the information; | 0009| C. to the multistate tax commission or its authorized representative; provided that | 0010| the information is used for tax purposes only and is disclosed by the multistate tax commission | 0011| only to states that have met the requirements of Subsection A of this section; | 0012| D. to a district court or an appellate court or a federal court: | 0013| (1) in response to an order thereof in an action relating to taxes to which | 0014| the state is a party and in which the information sought is about a taxpayer who is party to the | 0015| action and is material to the inquiry, in which case only that information may be required to be | 0016| produced in court and admitted in evidence subject to court order protecting the confidentiality | 0017| of the information and no more; | 0018| (2) in any action in which the department is attempting to enforce an act | 0019| with which the department is charged or to collect a tax; or | 0020| (3) in any matter in which the department is a party and the taxpayer has | 0021| put his own liability for taxes at issue, in which case only that information regarding the | 0022| taxpayer who is party to the action may be produced, but this shall not prevent the disclosure of | 0023| department policy or interpretation of law arising from circumstances of a taxpayer who is not a | 0024| party; | 0025| E. to the taxpayer or to the taxpayer's authorized representative; provided, | 0001| however, that nothing in this subsection shall be construed to require any employee to testify in a | 0002| judicial proceeding except as provided in Subsection D of this section; | 0003| F. information obtained through the administration of any law not subject to | 0004| administration and enforcement under the provisions of the Tax Administration Act to the extent | 0005| that release of that information is not otherwise prohibited by law; | 0006| G. in such manner, for statistical purposes, that the information revealed is not | 0007| identified as applicable to any individual taxpayer; | 0008| H. with reference to any information concerning the tax on tobacco imposed by | 0009| Sections 7-12-1 through 7-12-17 NMSA 1978 to a committee of the legislature for a valid | 0010| legislative purpose; | 0011| I. to a transferee, assignee, buyer or lessor of a liquor license, the amount and | 0012| basis of any unpaid assessment of tax for which his transferor, assignor, seller or lessee is liable; | 0013| J. to a purchaser of a business as provided in Sections 7-1-61 through 7-1-64 | 0014| NMSA 1978, the amount and basis of any unpaid assessment of tax for which the purchaser's | 0015| seller is liable; | 0016| K. to a municipality of this state upon its request for any period specified by that | 0017| municipality within the twelve months preceding the request for the information by that | 0018| municipality: | 0019| (1) the names, taxpayer identification numbers and addresses of | 0020| registered gross receipts taxpayers reporting gross receipts for that municipality under the Gross | 0021| Receipts and Compensating Tax Act or a local option gross receipts tax imposed by that | 0022| municipality. The department may also release the information described in this paragraph | 0023| quarterly or upon such other periodic basis as the secretary and the municipality may agree; and | 0024| (2) information indicating whether persons shown on any list of | 0025| businesses located within that municipality furnished by the municipality have reported gross | 0001| receipts to the department but have not reported gross receipts for that municipality under the | 0002| Gross Receipts and Compensating Tax Act or a local option gross receipts tax imposed by that | 0003| municipality. | 0004| The employees of municipalities receiving information as provided in this subsection | 0005| shall be subject to the penalty contained in Section 7-1-76 NMSA 1978 if that information is | 0006| revealed to individuals other than other employees of the municipality in question or the | 0007| department; | 0008| L. to the commissioner of public lands for use in auditing that pertains to rentals, | 0009| royalties, fees and other payments due the state under land sale, land lease or other land use | 0010| contracts; the commissioner of public lands and employees of the commissioner are subject to | 0011| the same provisions regarding confidentiality of information as employees of the department; | 0012| M. the department shall furnish, upon request by the child support enforcement | 0013| division of the human services department, the last known address with date of all names | 0014| certified to the department as being absent parents of children receiving public financial | 0015| assistance. The child support enforcement division personnel shall use such information only for | 0016| the purpose of enforcing the support liability of the absent parents and shall not use the | 0017| information or disclose it for any other purpose; the child support enforcement division and its | 0018| employees are subject to the provisions of this section with respect to any information acquired | 0019| from the department; | 0020| N. with respect to the tax on gasoline imposed by the Gasoline Tax Act, the | 0021| department shall make available for public inspection at monthly intervals a report covering the | 0022| amount and gallonage of gasoline and ethanol blended fuels imported, exported, sold and used, | 0023| including tax-exempt sales to the federal government reported or upon which the gasoline tax | 0024| was paid and covering taxes received from each distributor in the state of New Mexico; | 0025| O. the identity of distributors and gallonage reported on returns required under | 0001| the Gasoline Tax Act, Special Fuels Supplier Tax Act or Alternative Fuel Tax Act to any | 0002| distributor or supplier, but only when it is necessary to enable the department to carry out its | 0003| duties under the Gasoline Tax Act, the Special Fuels Supplier Tax Act or the Alternative Fuel | 0004| Tax Act; | 0005| P. the department shall release upon request only the names and addresses of all | 0006| gasoline or special fuel distributors, wholesalers and retailers to the New Mexico department of | 0007| agriculture, the employees of which are thereby subject to the penalty contained in Section | 0008| 7-1-76 NMSA 1978 if that information is revealed to individuals other than employees of either | 0009| the New Mexico department of agriculture or the department; | 0010| Q. the department shall answer all inquiries concerning whether a person is or is | 0011| not a registered taxpayer; | 0012| R. upon request of a municipality or county of this state, the department shall | 0013| permit officials or employees of the municipality or county to inspect the records of the | 0014| department pertaining to an increase or decrease to a distribution or transfer made pursuant to | 0015| Section 7-1-6.15 NMSA 1978 for the purpose of reviewing the basis for the increase or decrease. | 0016| The municipal or county officials or employees receiving information provided in this | 0017| subsection shall not reveal that information to any person other than another employee of the | 0018| municipality or the county, the department or a district court, an appellate court or a federal | 0019| court in a proceeding relating to a disputed distribution and in which both the state and the | 0020| municipality or county are parties. Any information provided in this subsection that is revealed | 0021| other than as provided in this subsection shall subject the person revealing the information to the | 0022| penalties contained in Section 7-1-76 NMSA 1978; | 0023| S. to a county of this state that has in effect any local option gross receipts tax | 0024| imposed by the county upon its request for any period specified by that county within the twelve | 0025| months preceding the request for the information by that county: | 0001| (1) the names, taxpayer identification numbers and addresses of | 0002| registered gross receipts taxpayers reporting gross receipts either for that county in the case of a | 0003| local option gross receipts tax imposed on a county-wide basis or only for the areas of that | 0004| county outside of any incorporated municipalities within that county in the case of a county local | 0005| option gross receipts tax imposed only in areas of the county outside of any incorporated | 0006| municipalities. The department may also release the information described in this paragraph | 0007| quarterly or upon such other periodic basis as the secretary and the county may agree; | 0008| (2) in the case of a local option gross receipts tax imposed by a county on | 0009| a county-wide basis, information indicating whether persons shown on any list of businesses | 0010| located within the county furnished by the county have reported gross receipts to the department | 0011| but have not reported gross receipts for that county under the Gross Receipts and Compensating | 0012| Tax Act or a local option gross receipts tax imposed by that county on a county-wide basis; and | 0013| (3) in the case of a local option gross receipts tax imposed by a county | 0014| only on persons engaging in business in that area of the county outside of any incorporated | 0015| municipalities, information indicating whether persons shown on any list of businesses located in | 0016| the area of that county outside of any incorporated municipalities within that county furnished | 0017| by the county have reported gross receipts to the department but have not reported gross receipts | 0018| for the area of that county outside of any incorporated municipalities within that county under | 0019| the Gross Receipts and Compensating Tax Act or any local option gross receipts tax imposed by | 0020| the county only on persons engaging in business in that area of the county outside of any | 0021| incorporated municipalities. | 0022| The officers and employees of counties receiving information as provided in this | 0023| subsection shall be subject to the penalty contained in Section 7-1-76 NMSA 1978 if such | 0024| information is revealed to individuals other than other officers or employees of the county in | 0025| question or the department; | 0001| T. to authorized representatives of an Indian nation, tribe or pueblo, the territory | 0002| of which is located wholly or partially within New Mexico, pursuant to the terms of a reciprocal | 0003| agreement entered into with the Indian nation, tribe or pueblo for the exchange of that | 0004| information for tax purposes only; provided that the Indian nation, tribe or pueblo has enacted a | 0005| confidentiality statute similar to this section; | 0006| U. information with respect to the taxes or tax acts administered pursuant to | 0007| Subsection B of Section 7-1-2 NMSA 1978, except that: | 0008| (1) information for or relating to any period prior to July 1, 1985 with | 0009| respect to Sections 7-25-1 through 7-25-9 and 7-26-1 through 7-26-8 NMSA 1978 may be | 0010| released only to a committee of the legislature for a valid legislative purpose; | 0011| (2) except as provided in Paragraph (3) of this subsection, contracts and | 0012| other agreements between the taxpayer and other parties and the proprietary information | 0013| contained in such contracts and agreements shall not be released without the consent of all | 0014| parties to the contract or agreement; and | 0015| (3) audit workpapers and the proprietary information contained in such | 0016| workpapers shall not be released except to: | 0017| (a) the minerals management service of the United States | 0018| department of the interior, if production occurred on federal land; | 0019| (b) a person having a legal interest in the property that is subject | 0020| to the audit; | 0021| (c) a purchaser of products severed from a property subject to the | 0022| audit; or | 0023| (d) the authorized representative of any of the persons in | 0024| Subparagraphs (a) through (c) of this paragraph, | 0025| but this paragraph does not prohibit the release of any proprietary information contained in the | 0001| workpapers that is also available from returns or from other sources not subject to the provisions | 0002| of this section; | 0003| V. information with respect to the taxes, surtaxes, advance payments or tax acts | 0004| administered pursuant to Subsection C of Section 7-1-2 NMSA 1978; | 0005| W. to the state corporation commission, information with respect to the | 0006| Corporate Income and Franchise Tax Act required to enable the commission to carry out its | 0007| duties; | 0008| X. to the state racing commission, information with respect to the state, | 0009| municipal and county gross receipts taxes paid by race tracks; | 0010| Y. upon request of a corporation authorized to be formed under the Educational | 0011| Assistance Act, the department shall furnish the last known address and the date of that address | 0012| of every person certified to the department as being an absent obligor of an educational debt that | 0013| is due and owed to the corporation or that the corporation has lawfully contracted to collect. The | 0014| corporation and its officers and employees shall use that information only for the purpose of | 0015| enforcing the educational debt obligation of such absent obligors and shall not disclose that | 0016| information or use it for any other purpose; | 0017| Z. any decision and order made by a hearing officer pursuant to Section 7-1-24 | 0018| NMSA 1978 with respect to a protest filed with the secretary on or after July 1, 1993; | 0019| AA. information required by any provision of the Tax Administration Act to be | 0020| made available to the public by the department; | 0021| BB. upon request by the Bernalillo county metropolitan court, the department | 0022| shall furnish the last known address and the date of that address for every person certified to the | 0023| department by the court as being a person who owes fines, fees or costs to the court or who has | 0024| failed to appear pursuant to a court order or a promise to appear; | 0025| CC. upon request by a magistrate court, the department shall furnish the last | 0001| known address and the date of that address for every person certified to the department by the | 0002| court as being a person who owes fines, fees or costs to the court or who has failed to appear | 0003| pursuant to a court order or a promise to appear; and | 0004| DD. to the national tax administration agencies of Mexico and Canada, provided | 0005| the agency receiving the information has entered into a written agreement with the department to | 0006| use the information for tax purposes only and is subject to a confidentiality statute similar to this | 0007| section." | 0008| Section 4. Section 7-1-26 NMSA 1978 (being Laws 1965, Chapter 248, Section 28, as | 0009| amended) is amended to read: | 0010| "7-1-26. CLAIM FOR REFUND.-- | 0011| A. Any person who believes that an amount of tax has been paid by or withheld | 0012| from that person in excess of that for which the person was liable, who has been denied any | 0013| credit or rebate claimed or who claims a prior right to property in the possession of the | 0014| department pursuant to a levy made under authority of Sections 7-1-31 through 7-1-34 NMSA | 0015| 1978 may claim a refund by directing to the secretary, within the time limited by the provisions | 0016| of Subsections B, C and D of this section, a written claim for refund. Except as provided in | 0017| Subsection G of this section, a refund claim must include the taxpayer's name, address and | 0018| identification number, the type of tax for which a refund is being claimed, the sum of money | 0019| being claimed, the period for which overpayment was made and the basis for the refund. The | 0020| secretary or the secretary's delegate may allow the claim in whole or in part or may deny the | 0021| claim. If the claim is denied in whole or in part in writing, the claim may not be refiled. If the | 0022| claim is not granted in full, the person, within ninety days after either the mailing of the denial | 0023| of all or any part of the claim, may elect to pursue one, but not more than one, of the remedies in | 0024| Paragraphs (1) and (2) of this subsection. If the department has neither granted nor denied any | 0025| portion of a claim for refund within one hundred twenty days of the date the claim was mailed or | 0001| delivered to the department, the person may refile it within the time limits set forth in Subsection | 0002| B of this section or may within ninety days elect to pursue one, but only one, of the remedies in | 0003| Paragraphs (1) and (2) of this subsection. In any case, if a person does timely pursue more than | 0004| one remedy, the person shall be deemed to have elected the first remedy invoked. The remedies | 0005| are as follows: | 0006| (1) the person may direct to the secretary a written protest against the | 0007| denial of, or failure to either allow or deny, the claim, which shall be set for hearing by a hearing | 0008| officer designated by the secretary promptly after the receipt of the protest in accordance with | 0009| the provisions of Section 7-1-24 NMSA 1978, and pursue the remedies of appeal from decisions | 0010| adverse to the protestant as provided in Section 7-1-25 NMSA 1978; or | 0011| (2) the person may commence a civil action in the district court for Santa | 0012| Fe county by filing a complaint setting forth the circumstance of the claimed overpayment, | 0013| alleging that on account thereof the state is indebted to the plaintiff in the amount stated, | 0014| together with any interest allowable, demanding the refund to the plaintiff of that amount and | 0015| reciting the facts of the claim for refund. The plaintiff or the secretary may appeal from any | 0016| final decision or order of the district court to the court of appeals. | 0017| B. Except as otherwise provided in Subsections C and D of this section, no credit | 0018| or refund of any amount may be allowed or made to any person unless as the result of a claim | 0019| made by that person as provided in this section: | 0020| (1) within three years of the end of the calendar year in which: | 0021| (a) the payment was originally due or the overpayment resulted | 0022| from an assessment by the department pursuant to Section 7-1-17 NMSA 1978, whichever is | 0023| later; | 0024| (b) the final determination of value occurs with respect to any | 0025| overpayment that resulted from a disapproval by any agency of the United States or the state of | 0001| New Mexico or any court of increase in value of a product subject to taxation under the Oil and | 0002| Gas Severance Tax Act, the Oil and Gas Conservation Tax Act, the Oil and Gas Emergency | 0003| School Tax Act, the Oil and Gas Ad Valorem Production Tax Act or the Natural Gas Processors | 0004| Tax Act; or | 0005| (c) property was levied upon pursuant to the provisions of the Tax | 0006| Administration Act; | 0007| (2) within one year of the date: | 0008| (a) of the denial of the claim for credit under the provisions of the | 0009| Investment Credit Act or Filmmaker's Credit Act; | 0010| (b) an assessment of tax is made; or | 0011| (c) a proceeding begun in court by the department with respect to | 0012| any period that is covered by a waiver signed on or after July 1, 1993 by the taxpayer pursuant to | 0013| Subsection F of Section 7-1-18 NMSA 1978; or | 0014| (3) for assessments made on or after July 1, 1993, within one year of the | 0015| date of an assessment of tax made under Subsection B, C or D of Section 7-1-18 NMSA 1978 | 0016| when the assessment applies to a period ending at least three years prior to the beginning of the | 0017| year in which the assessment was made, but the claim for refund shall not be made with respect | 0018| to any period not covered by the assessment. | 0019| C. No credit or refund shall be allowed or made to any person claiming a refund | 0020| of gasoline tax under Section | 0021| 7-13-11 NMSA 1978 unless notice of the destruction of the gasoline was given the department | 0022| within thirty days of the actual destruction and the claim for refund is made within six months of | 0023| the date of destruction. No credit or refund shall be allowed or made to any person claiming a | 0024| refund of gasoline tax under Section 7-13-14 NMSA 1978 unless the refund is claimed within | 0025| six months of the date of purchase of the gasoline and the gasoline has been used at the time the | 0001| claim for refund is made. | 0002| D. If, as a result of an audit by the internal revenue service or the filing of an | 0003| amended federal return changing a prior election or making any other change for which federal | 0004| approval is required by the Internal Revenue Code, any adjustment of federal tax is made with | 0005| the result that there would have been an overpayment of tax if the adjustment to federal tax had | 0006| been applied to the taxable period to which it relates, claim for credit or refund of only that | 0007| amount based on the adjustment may be made as provided in this section within one year of the | 0008| date of the internal revenue service audit adjustment or payment of the federal refund or within | 0009| the period limited by Subsection B of this section, whichever expires later. Interest, computed at | 0010| the rate specified in Subsection B of Section 7-1-68 NMSA 1978, shall be allowed on any such | 0011| claim for refund from the date one hundred twenty days after the claim is made until the date the | 0012| final decision to grant the credit or refund is made. | 0013| E. Any refund of tax paid under any tax or tax act administered under Subsection | 0014| B of Section 7-1-2 NMSA 1978 may be made, at the discretion of the department, in the form of | 0015| credit against future tax payments if future tax liabilities in an amount at least equal to the credit | 0016| amount reasonably may be expected to become due. | 0017| F. For the purposes of this section, the term "oil and gas tax return" means a | 0018| return reporting tax due with respect to oil, natural gas, liquid hydrocarbons or carbon dioxide | 0019| pursuant to the Oil and Gas Severance Tax Act, the Oil and Gas Conservation Tax Act, the Oil | 0020| and Gas Emergency School Tax Act, the Oil and Gas Ad Valorem Production Tax Act, the | 0021| Natural Gas Processors Tax Act or the Oil and Gas Production Equipment Ad Valorem Tax Act. | 0022| G. The filing of a fully completed original income tax return, corporate income | 0023| tax return, corporate income and franchise tax return, estate tax return or special fuel excise tax | 0024| return that shows a balance due the taxpayer or a fully completed amended income tax return, an | 0025| amended corporate income tax return, an amended corporate income and franchise tax return, an | 0001| amended estate tax return, an amended special fuel excise tax return or an amended oil and gas | 0002| tax return that shows a lesser tax liability than the original return constitutes the filing of a claim | 0003| for refund for the difference in tax due shown on the original and amended returns." | 0004| Section 5. Section 7-1-28 NMSA 1978 (being Laws 1965, Chapter 248, Section 30, as | 0005| amended) is amended to read: | 0006| "7-1-28. AUTHORITY FOR ABATEMENTS OF ASSESSMENTS OF TAX.-- | 0007| A. In response to a written protest against an assessment, submitted in | 0008| accordance with the provisions of Section 7-1-24 NMSA 1978, but before any court acquires | 0009| jurisdiction of the matter, or when a "notice of assessment of taxes" is found to be incorrect, the | 0010| secretary or the secretary's delegate may, with the written approval of the attorney general, abate | 0011| any part of an assessment determined by the secretary or the secretary's delegate to have been | 0012| incorrectly, erroneously or illegally made. Notwithstanding the above, abatements of | 0013| assessments incorrectly, erroneously or illegally made to one person amounting to less than five | 0014| thousand dollars ($5,000) in one calendar year may be made without the prior written approval | 0015| of the attorney general, except that: | 0016| (1) abatements with respect to the Oil and Gas Severance Tax Act, the | 0017| Oil and Gas Conservation Tax Act, the Oil and Gas Emergency School Tax Act, the Oil and Gas | 0018| Ad Valorem Production Tax Act, the Natural Gas Processors Tax Act or the Oil and Gas | 0019| Production Equipment Ad Valorem Tax Act, abatements of gasoline tax made under Sections 7-13-13 through 7-13-15 NMSA 1978 and abatements of cigarette tax made under the Cigarette | 0020| Tax Act may be made without the prior approval of the attorney general regardless of the | 0021| amount; and | 0022| (2) abatements with respect to the Corporate Income and Franchise Tax | 0023| Act amounting to less than twenty thousand dollars ($20,000) may be made without prior | 0024| approval of the attorney general. | 0025| B. Pursuant to the final order of the district court for Santa Fe county, the court | 0001| of appeals, the supreme court of New Mexico or any federal court, from which order, appeal or | 0002| review is not successfully taken by the department, adjudging that any person is not required to | 0003| pay any portion of tax assessed to that person, the secretary or the secretary's delegate shall cause | 0004| that amount of the assessment to be abated. | 0005| C. Pursuant to a compromise of taxes agreed to by the secretary and according to | 0006| the terms of the closing agreement formalizing the compromise, the secretary or the secretary's | 0007| delegate shall cause the abatement of the appropriate amount of any assessment or assessments | 0008| of tax. | 0009| D. The secretary or the secretary's delegate shall cause the abatement of the | 0010| amount of an assessment of tax that is equal to the amount of fee paid to or retained by an out-of-state attorney or collection agency from a judgment or the amount collected by the attorney or | 0011| collection agency pursuant to Section 7-1-58 NMSA 1978. | 0012| E. Records of abatements made in excess of five thousand dollars ($5,000) shall | 0013| be available for inspection by the public. The department shall keep such records for a | 0014| minimum of three years from the date of the abatement." | 0015| Section 6. Section 7-1-38 NMSA 1978 (being Laws 1965, Chapter 248, Section 40, as | 0016| amended) is amended to read: | 0017| "7-1-38. NOTICE OF LIEN.--A notice of the lien provided for in Section 7-1-37 NMSA | 0018| 1978 may be recorded in any county in the state in the tax lien index established by Sections | 0019| 48-1-1 through 48-1-7 NMSA 1978 and a copy thereof shall be sent to the taxpayer affected. | 0020| Any county clerk to whom the notices are presented shall record them as requested without | 0021| charge. The notice of lien shall identify the taxpayer whose liability for taxes is sought to be | 0022| enforced and the date or approximate date on which the tax became due and shall state that New | 0023| Mexico claims a lien for the entire amount of tax asserted to be due, including applicable interest | 0024| and penalties. Recording of the notice of lien shall be effective as to all property and rights to | 0025| property of the taxpayer." | 0001| Section 7. Section 7-1-67 NMSA 1978 (being Laws 1965, Chapter 248, Section 68, as | 0002| amended) is amended to read: | 0003| "7-1-67. INTEREST ON DEFICIENCIES.-- | 0004| A. If any tax imposed is not paid on or before the day on which it becomes due, | 0005| interest shall be paid to the state on such amount from the first day following the day on which | 0006| the tax becomes due, without regard to any extension of time or installment agreement, until it is | 0007| paid except that: | 0008| (1) for any income tax imposed on a member of the armed services of the | 0009| United States serving in a combat zone under orders of the president of the United States, | 0010| interest shall accrue only for the period beginning the day after any applicable extended due date | 0011| if the tax is not paid; | 0012| (2) if the amount of interest due at the time payment is made is less than | 0013| one dollar ($1.00), then no interest shall be due; and | 0014| (3) if demand is made for payment of any tax including accrued interest, | 0015| and if such tax is paid within ten days after the date of such demand, no interest on the amount | 0016| so paid shall be imposed for the period after the date of the demand. | 0017| B. Interest due to the state under Subsection A or D of this section shall be at the | 0018| rate of fifteen percent a year, computed at the rate of one and one-fourth percent per month or | 0019| any fraction thereof; provided that, if a different rate is specified by a compact or other interstate | 0020| agreement to which New Mexico is a party, then that rate shall be applied to amounts due under | 0021| the compact or other agreement. | 0022| C. Nothing in this section shall be construed to impose interest on interest or | 0023| interest on the amount of any penalty. | 0024| D. If any tax required to be paid in accordance with Section 7-1-13.1 NMSA | 0025| 1978 is not paid in the manner required by that section, interest shall be paid to the state on the | 0001| amount required to be paid in accordance with Section 7-1-13.1 NMSA 1978. If interest is due | 0002| under this subsection and is also due under Subsection A of this section, interest shall be due and | 0003| collected only pursuant to Subsection A of this section." | 0004| Section 8. Section 7-1-68 NMSA 1978 (being Laws 1965, Chapter 248, Section 69, as | 0005| amended) is amended to read: | 0006| "7-1-68. INTEREST ON OVERPAYMENTS.-- | 0007| A. As provided in this section, interest shall be allowed and paid on the amount | 0008| of tax overpaid by a person that is subsequently refunded or credited to that person. | 0009| B. Interest payable on overpayments of tax shall be paid at the rate of fifteen | 0010| percent a year, computed at the rate of one and one-fourth percent per month or fraction thereof; | 0011| provided that, if a different rate is specified by a compact or other interstate agreement to which | 0012| New Mexico is a party, then that rate shall be applied to amounts due under the compact or other | 0013| agreement. | 0014| C. Unless otherwise provided by this section, interest on an overpayment not | 0015| arising from an assessment by the department shall be paid from the date the claim for refund | 0016| was made until a date preceding by not more than thirty days the date on which the amount | 0017| thereof is credited or refunded to any person; interest on an overpayment arising from an | 0018| assessment by the department shall be paid from the date overpayment was made until a date | 0019| preceding by not more than thirty days the date on which the amount thereof is credited or | 0020| refunded to any person. | 0021| D. No interest shall be allowed or paid with respect to an amount credited or | 0022| refunded if: | 0023| (1) the amount of interest due is less than one dollar ($1.00); | 0024| (2) the credit or refund is made within seventy-five days of the date of the | 0025| claim for refund of income tax, pursuant to either the Income Tax Act or the Corporate Income | 0001| and Franchise Tax Act, for the tax year immediately preceding the tax year in which the claim is | 0002| made; | 0003| (3) the credit or refund is made within one hundred twenty days of the | 0004| date of the claim for refund of income tax, pursuant to the Income Tax Act, the Corporate | 0005| Income and Franchise Tax Act or the Banking and Financial Corporations Tax Act, for any tax | 0006| year more than one year prior to the year in which the claim is made; | 0007| (4) Sections 6611(f) and 6611(g) of the United States Internal Revenue | 0008| Code of 1986, as those sections may be amended or renumbered, prohibit payment of interest for | 0009| federal income tax purposes; | 0010| (5) the credit or refund is made within sixty days of the date of the claim | 0011| for refund of any tax other than income tax; or | 0012| (6) gasoline tax is refunded or credited under the Gasoline Tax Act to | 0013| users of gasoline off the highways." | 0014| Section 9. Section 7-1-69 NMSA 1978 (being Laws 1965, Chapter 248, Section 70, as | 0015| amended) is amended to read: | 0016| "7-1-69. CIVIL PENALTY FOR FAILURE TO PAY TAX OR FILE A RETURN.-- | 0017| A. Except as provided in Subsection B of this section, in the case of failure due | 0018| to negligence or disregard of rules and regulations, but without intent to defraud, to pay when | 0019| due any amount of tax required to be paid or to file by the date required a return regardless of | 0020| whether any tax is due, there shall be added to the amount as penalty the greater of: | 0021| (1) two percent per month or any fraction of a month from the date the | 0022| tax was due multiplied by the amount of tax due but not paid, not to exceed ten percent of the | 0023| tax due but not paid; | 0024| (2) two percent per month or any fraction of a month from the date the | 0025| return was required to be filed multiplied by the tax liability established in the late return, not to | 0001| exceed ten percent of the tax liability established in the late return; or | 0002| (3) a minimum of five dollars ($5.00), but the five-dollar ($5.00) | 0003| minimum penalty shall not apply to taxes levied under the Income Tax Act or taxes administered | 0004| by the department pursuant to Subsection B of Section 7-1-2 NMSA 1978. | 0005| B. If a different penalty is specified in a compact or other interstate agreement to | 0006| which New Mexico is a party, then the penalty provided in the compact or other interstate | 0007| agreement shall be applied to amounts due under the compact or other interstate agreement at the | 0008| rate and in the manner prescribed by the compact or other interstate agreement. | 0009| C. In the case of failure, with intent to defraud the state, to pay when due any | 0010| amount of tax required to be paid there shall be added to the amount fifty percent of the tax or a | 0011| minimum of twenty-five dollars ($25.00), whichever is greater, as penalty. | 0012| D. In the case of failure to pay the amount of tax required to be paid in | 0013| accordance with Section 7-1-13.1 NMSA 1978 in the manner required by that section there shall | 0014| be added to the amount due a penalty of two percent of the amount due, except that if a penalty | 0015| is required to be imposed by this subsection and a penalty is also required to be imposed under | 0016| Subsection A of this section, the penalty shall be imposed and collected pursuant to Subsection | 0017| A of this section only." | 0018| Section 10. Section 7-1-70 NMSA 1978 (being Laws 1965, Chapter 248, Section 71) is | 0019| amended to read: | 0020| "7-1-70. CIVIL PENALTY FOR BAD CHECKS.--If any payment required to be made | 0021| by provision of the Tax Administration Act is attempted to be made by check that is not paid | 0022| upon presentment, such dishonor is presumptive of negligence. The penalty shall never be less | 0023| than ten dollars ($10.00). This penalty is in addition to any other penalty imposed by law." | 0024| Section 11. EFFECTIVE DATE.--The effective date of the provisions of this act | 0025| is July 1, 1996. | 0001| |