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





SPONSOR: Gubbels DATE TYPED: 3-11-99 HB 246
SHORT TITLE: Change Weight Distance Tax Due Date SB
ANALYST: Segura

REVENUE



Estimated Revenue
 Subsequent

Years Impact

 Recurring

or Non-Rec

 Fund

Affected

FY99 FY2000
$ (380.0) Non Recurring SRF

(Parenthesis ( ) Indicate Revenue Decreases)



SOURCES OF INFORMATION



Taxation and Revenue Department (TRD)

State Highway and Transportation Department (SHTD)



SUMMARY



Synopsis of Bill



House Bill 246 amends section 7-15SA-9 NMSA 1978 to change the due date for the weight distance tax from the 25th day of the month in which the tax is due, to the last day of the month. The effective date is January 1,1999.



Significant Issues



According to TRD, due to time required to process returns, payments received in the last month of FY99-00 would be "pushed forward" to the next fiscal year. Historically, this amount averages about .825% of total fiscal year collections.



FISCAL IMPLICATIONS



See Revenue Table.



ADMINISTRATIVE IMPLICATIONS



No significant administrative impact is expected. Implementation would require slight modification of computer processing systems and tax reporting forms.



OTHER SUBSTANTIVE ISSUES



According to TRD, for taxpayers with New Mexico weight distance tax liability, the state serves as a base jurisdiction for International Fuel Tax Agreement (IFTA) reporting requirements. Provisions of this bill bring the due date for payment of weight distance tax in line with the IFTA due date, effectively reducing the compliance burden for many taxpayers-motor carriers would be able to tend to both programs concurrently.



RMS/gm