???
SB 368
REFORM TAX CODE
- Legislative URL:
- SB 368 on nmlegis.gov
- Emergency Clause:
- No
- Germane:
- N/A
- Location:
- - OTHER -
- Action:
- [4] SCONC/SCORC/SPAC/SFC-SCONC [14] w/o rec-SCORC [22] w/o rec-SPAC [32] w/o rec-SFC API.
- Issue(s):
- General Interest
Companion Bills
- Bills:
-
REFORM TAX CODE
Related Legislators
- Bill Sponsor:
- William Sharer
Related Documents
- Downloads:
-
Introduced
SCONC Committee Report
SCORC Committee Report
SPAC Committee Report
Fiscal Impact Report
Summary
House Bill 369 and Senate Bill 368 are companion bills that would overhaul New Mexico’s tax system and thus its revenue stream. According to the Santa Fe New Mexican, the bills’ sponsors “conceded it’s a work in progress, and that they’re not fully clear how the tax burdens of individuals and businesses will change.”*
The overhaul consists of several components and includes:
- repealing the personal and corporate income taxes (and the various deductions, credits and exemptions that are part of those taxes), the oil and gas proceeds and pass-through entity withholding tax, and others;
- reducing the rate of the gross receipts tax and governmental gross receipts tax;
- repealing a number of tax exemptions, deductions and credits, including the exemption from the gross receipts tax for the receipts from the sale of or leasing of oil, natural gas or mineral interests, the advanced energy combined reporting tax credit and the alternative energy product manufacturers tax credit;
- stating that the “place of business” for New Mexico taxing purposes of selling or leasing oil, gas or mineral interests, is the location of the oil, gas or mineral interests sold or leased, and that all receipts from such activity are to be reported from that place of business; and,
- changing the maximum rates of federal water project gross receipts tax, the municipal environmental gross receipts tax, the county environmental gross receipts tax, the county regional transit gross receipts tax, and the water and sanitation gross receipts tax.
A possible concern with these bills is the scope of the revamp and the potential effect on the State’s revenues and its ability to fund its agencies at the levels necessary to keep up the work of the agencies. Another potential concern is that by eliminating the income tax, many tax credits that are currently available to individuals and business for things like credits for the preservation of cultural property and the renewable energy production tax credit would be repealed, and that might have the effect of reducing interest by taxpayers in engaging in those activities.
The FIRs that will be written for these bills are likely to contain financial and economic analyses that might be of assistance in weighing the potential pros and cons.
Senate Bill 368 is a companion bill to House Bill 369.
Date of Summary: 2/4/2013
*www.santafenewmexican.com/localnews/020113ConsumptionTax1stLd-Writethru#.UQ_lyo59nww