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| SPONSOR: | Kidd | DATE TYPED: | 02/24/99 | HB | |||
| SHORT TITLE: | Nonresident License Fee | SB | 484 | ||||
| ANALYST: | Valenzuela | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY99 | FY2000 | FY99 | FY2000 | ||
| NFI | NFI | ||||
(Parenthesis ( ) Indicate Expenditure Decreases)
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| (Undetermined) | (Indefinite) | Recurring | GF | |
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates/Conflicts with/Companion to/Relates to
SOURCES OF INFORMATION
LFC Files
Department of Public Safety (DPS)
SUMMARY
Synopsis of Bill
Senate Bill 484 would amend Section 60-6A-15 NMSA 1978, "License fees," by adding a new license category for the nonresident license subsection. The bill would add a classification where nonresident licensees, whose total billing to New Mexico wholesalers "of $50,000 or less", shall pay a "$300 annual license fee". Generally, small wineries fall within this classification.
The result of the passage of this bill is a loss of revenue to general fund equal to $600 per nonresident licensing fees whose billings to New Mexico wholesalers is less than $50,000. The total dollar amount of loss to the general fund is unknown because the Alcohol & Gaming Division does not currently distinguish between licensees whose billings fall between $0.00 and $100,000. This bill would make that distinction.
Under existing statute, fees to nonresidents seeking a license follow:
| Billings to NM wholesalers
(12 months) |
License fee (3 Years prorated) |
| $0 to $100,000 | $900 |
Proposed legislation would impose a fee to nonresidents seeking a license as follows:
| Billings to NM wholesalers (12 months) | License Fee (3 Years prorated) |
| $50,001 to $100,000 | $900 |
| $0 to 50,000 | $300 |
FISCAL IMPLICATIONS
The revenue loss would be contingent upon the number of nonresident licensee who fall within this category. Senate Bill 484 does not contain an appropriation. If this bill is not enacted, it is uncertain how many nonresidents may choose not to deal with New Mexico as a result of the change.
ADMINISTRATIVE IMPLICATIONS
The administrative impact would be minor.
TECHNICAL ISSUES
The Department of Public Safety identifies a significant technical issue correcting grammar in the breakdown of billings.
POSSIBLE QUESTIONS
How many nonresident licensees bill to New Mexico wholesalers less than $100,000 annually?
MV/gm