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| SPONSOR: | Lutz | DATE TYPED: | 02/02/99 | HB | 126 | ||
| SHORT TITLE: | Funeral Expense Exemption | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| $ (900.0) | Recurring | General | ||
| $ (600.0) | Recurring | Counties/Munic | ||
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates/Conflicts with/Companion to/Relates to
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
French's Mortuary, Albuquerque
SUMMARY
Synopsis of Bill:
This bill would exempt payment of gross receipts the selling of tangible property and services related to funerals and the direct disposition of a human body.
FISCAL IMPLICATIONS
In 1997, over twelve thousand New Mexicans died. Ninety-three percent of funeral and burial services were performed within municipalities. The Taxation and Revenue Department estimates that $24 million in taxable funeral and burial expenses occur annually in New Mexico. The estimated fiscal impact is $1.5 million.
ADMINISTRATIVE IMPLICATIONS
The Taxation and Revenue Department (TRD) reports that no mechanism exists to track or audit the total cost of this legislation as it is written.
TECHNICAL ISSUES
The language in the bill "in connection with" may be too vague, leading to abuses of the legislation and present difficulties when assessing the cumulative effect on gross receipts. Defining what "in connection with" would resolve this.
The majority of costs according to French's Mortuary in Albuquerque, are the costs of mortuary services provided by funeral homes like French's, and burial. An exemption of these two activities alone would reduce the possible incidence of abuses, allow TRD to more accurately determine the fiscal impacts, and remain consistent with the intent of this bill if the intent is to alleviate costs to the family of the deceased.
JBE/gm