Master FIR (1988)

NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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

SPONSOR:	Lujan		DATE TYPED:	02/16/99		HB	530
SHORT TITLE:		Amend Taxation and Revenue Department Act				SB
					ANALYST:		Eaton

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY99	FY2000	Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
	(unknown)		Recurring	General Fund
	(unknown)		Recurring	Counties/Munic.

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

This bill would permit the pueblos of Santa Ana and Laguna to enter into agreements with the Taxation and Revenue Department whereby they would receive credit against state and local gross receipts taxes payable to the state. The amount of credit would be equal to the lesser of seventy five percent of the Pueblo tax imposed.

This bill is designed to eliminate the double taxation that occurs when both the state and pueblo(s) impose a gross receipts tax.

The pueblo of Santa Clara currently has an agreement like this with the state.

Significant Issues

This bill would make it easier for the pueblos to attract commerce to pueblo lands. While purchase of reservation land is not permitted, this legislation would be attractive to businesses considering establishing operations on pueblo land.

FISCAL IMPLICATIONS

The impact to the general fund will be negative but to what extent is unknown at this time. The fiscal impact to the pueblos will be positive.

Because this legislation is attractive to businesses, the possible increase in pueblo commerce over time and the general fund revenues generated as a result, may outweigh the short term negative impacts this legislation would have in the absence of new commerce.

ADMINISTRATIVE IMPLICATIONS

The Taxation and Revenue Department (TRD) estimates the cost of reprogramming TRD computers would be $15,000.

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