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| SPONSOR: | Griego | DATE TYPED: | 03/5/99 | HB | |||
| SHORT TITLE: | Amending Gross Receipts NTTC Provisions | SB | 355 /aSCORC | ||||
| ANALYST: | Eaton/Taylor | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| Unknown | $ (10,000.0) | $ (10,000.0) | Recurring | General Fund |
(Parenthesis ( ) Indicate Revenue Decreases)
Conflicts with New Mexico Constitution Article 4, Section 32
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of SCORC Amendment
The Senate Corporations and Transportation Committee amendment strikes language that requires a merchant to be in possession of a Non-Taxable Transaction Certificate of the appropriate series issued prior to January 1, 1992.
Synopsis of Bill
This bill would amend the Gross Receipts Compensating Tax Act by including language that would allow a seller or lessor in possession of a version of a Non-Taxable Transaction Certificate issued before 1992, to receive the appropriate tax deduction for taxes paid since 1992 -a refund. The bill also includes language that would forgive the seller or lessor of interest and penalties due as they relate to taxes paid/payable since 1992.
Significant Issues
The Taxation and Revenue Department (TRD) states that this amendment is contrary to Article 4 Section 32 of the New Mexico Constitution which states:
"No obligation or liability of any person, association or corporation held or owned by owing to the state, or any municipal corporation therein, shall ever be exchanged, transferred, remitted, released, postponed or in any way diminished by the legislature, nor shall any such obligation or liability be extinguished except by the payment thereof into the proper treasury, or by proper proceeding in court."
FISCAL IMPLICATIONS
The Taxation and Revenue Department (TRD) reports that this bill will cost the general fund at least $10 million. See TRD analysis for details.
ADMINISTRATIVE IMPLICATIONS
TRD reports a large administrative impact, costing $500 thousand or more.
CONFLICT
New Mexico Constitution Article 4, Section 32.
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