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.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

Endorsed by the Revenue Stabilization and Tax Policy Committee. The bill proposes a change to the New Mexico Constitution at the next general election. If approved, the legislature would then pass legislation to increase the current veterans property tax exemption of $2,000. The exemption would be raised by $2,000 each year until it reaches $12,000.

This measure would appear on the ballot at the November 2000 election. The appropriate statutory changes would need to be passed by the Legislature in 2001, with the incremental increase first occurring in November 2001.

FISCAL IMPLICATIONS

TRD estimates there would be no fiscal impact to the state or local governments. The increase in the tax reduction would be from $50 to $300 by 2005 for approximately 81,500 veterans. The approximately $24,500.0 in total tax relief would be picked up by an increase in rates on other taxpayers of approximately 3.1%. However, about half of the counties have no remaining rate authority, resulting in potential revenue loss to those counties.

Attached TRD fiscal analysis illustrates impacts by county.

AW/gm

Attachment