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| SPONSOR: | Thompson | DATE TYPED: | 02/19/01 | HB | 697 | ||
| SHORT TITLE: | Amend Withholding Tax Act | SB | |||||
| ANALYST: | Williams | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY01 | FY02 | |||
|
NFI |
||||
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Taxation and Revenue Department
SUMMARY
Synopsis of Bill
The bill would amend the Withholding Tax Act to reflect that an investment partnership would not be required to withhold New Mexico income tax or seek a commitment to file from out-of-state partners. The bill is effective beginning tax year 2001.
Significant Issues
Investment returns such as interest, dividends and sale of securities are apportioned and are not taxable to New Mexico for out-of-state residents. TRD notes this bill "simplifies the paperwork chain."
FISCAL IMPLICATIONS
No fiscal impact because of the apportionment to the out-of-state partner based on state of residence.
ADMINISTRATIVE IMPLICATIONS
TRD notes this bill could potentially reduce processing payments and refund claims for out-of-state partners. This number is not expected to be large.
AW/ar