NOTE: As provided in LFC policy, this report is intended only 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 for other purposes.

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F I S C A L I M P A C T R E P O R T

SPONSOR:	Crook		DATE TYPED:	03/16/03		HB	283/aHFl#1/aSFC
SHORT TITLE:		Tax Administration Act Amendments				SB
					ANALYST:		Gilbert

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

$0.1 See Narrative

Recurring

General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

No Response Received From

Administrative Office of the Courts (AOC)

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of SFC Amendment

The Senate Finance Committee amendment authorizes interest would not be paid if credited or refunded amounts are made within fifty-five days of the date of the claim for the refund of income tax, or within seventy-five days of the date of the claim in the case of gasoline tax to users of gasoline off the highways.

Synopsis of HFl #1

House Floor amendment #1 to House Bill 283 makes a non-substantive correction to page 26, line 6 clarifying that credits or refunds to offset prior taxpayer liabilities shall be pursuant to Subsection E of Section 7-1-29 NMSA 1978;

Synopsis of Original Bill

House Bill 283 amends the Tax Administration Act by making technical changes. It also amends provisions regarding confidentiality of tax returns and other taxpayer information, increases the Taxation and Revenue Department (TRD) cabinet secretary’s abatement authority, amends provisions regarding installment payments, refunds, and interest, and makes changes to judicial hearing procedures.

Significant Issues

This bill lengthens the time frame, from three to fifteen days, during which time the court must hear matters relating to injunctions against delinquent taxpayers and against persons other than delinquent taxpayers.

FISCAL IMPLICATIONS

HB 283 modifies the Tax Administration Act per the Revenue Stabilization and Tax Policy Committee. TRD has not provided information on the bill’s potential impact on general fund revenue.

ADMINISTRATIVE IMPLICATIONS

HB 283 will change provisions of the Tax Administration Act, thus requiring TRD to update internal procedures and publications and to conduct staff training.

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