HOUSE BILL 3

47th legislature - STATE OF NEW MEXICO - first special session, 2005

INTRODUCED BY

Greg Payne

AN ACT

RELATING TO TAXATION; PROVIDING FOR AN EXCESS REVENUE TAX REBATE; CREATING THE EXCESS REVENUE TAX REBATE FUND; PROVIDING FOR A TRANSFER OF EXCESS REVENUE FROM THE GENERAL FUND; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. [NEW MATERIAL] EXCESS REVENUE TAX REBATE FUND CREATED.--The "excess revenue tax rebate fund" is created in the state treasury and shall consist of money appropriated or transferred to the fund. The fund shall be administered by the taxation and revenue department. Money in the fund shall not be expended for any purpose other than making rebates to taxpayers pursuant to the provisions of this 2005 act.

     Section 2. [NEW MATERIAL] TRANSFER--EXCESS REVENUE TAX REBATE FUND.--If, at the end of any fiscal year, the difference between the amount of the general fund revenue received for that fiscal year and the amount of the consensus general fund revenue forecast available during the legislative session in which the budget for that fiscal year was adopted is at least one percent of the amount of the consensus revenue forecast, an amount equal to that difference shall be transferred from the general fund to the excess revenue tax rebate fund.

     Section 3. A new section of the Income Tax Act is enacted to read:

     "[NEW MATERIAL] EXCESS REVENUE TAX REBATE.--

          A. If a transfer to the excess revenue tax rebate fund pursuant to Section 2 of this 2005 act has occurred, no later than ninety days after the transfer the department shall distribute the balance in the fund to eligible taxpayers pursuant to the provisions of this section. These distributions shall represent a rebate of a portion of taxes paid to the state and shall be known as the "excess revenue tax rebate".

          B. Each resident of New Mexico who filed a New Mexico personal income tax return for the prior taxable year and who is not a dependent of another taxpayer is eligible to receive one or more excess revenue tax rebates and shall be known for the purposes of this section as an "eligible taxpayer". A resident may be an eligible taxpayer even if the resident had no income taxable pursuant to the Income Tax Act in the prior taxable year.

          C. The number of excess revenue tax rebates payable to an eligible taxpayer shall be the same as the number of federal exemptions allowable for that eligible taxpayer for federal income tax purposes on the New Mexico personal income tax return filed by the eligible taxpayer for the prior taxable year. 

          D. The department shall calculate the amount of an excess revenue tax rebate by dividing the balance in the excess revenue tax rebate fund by the total number of federal exemptions allowable for federal income tax purposes that were claimed on New Mexico personal income tax returns filed by eligible taxpayers for the prior taxable year.

          E. The department shall not make a distribution of an excess revenue tax rebate to a person who:

                (1) was an inmate of a public institution for more than six months during the prior taxable year; or

                (2) was not a resident of New Mexico on the last day of the prior taxable year.

          F. The secretary may adopt regulations necessary to administer the provisions of this section."

     Section 4. APPLICABILITY.--The provisions of this act apply to the 2006 and subsequent fiscal years.

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