Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are used for other purposes.
Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).
Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and
attachments may also be obtained from the LFC in Suite 101 of the State Capitol Building North.
F I S C A L I M P A C T R E P O R T
SPONSOR Whitaker
DATE TYPED 2/15/2005 HB 575
SHORT TITLE Streamlined Sales Tax Agreement Participation
SB
ANALYST Taylor
REVENUE
Estimated Revenue
FY05
FY06
Subsequent
Years Impact
Recurring
or Non-Rec
Fund
Affected
NFI
NFI
NFI
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Taxation and Revenue Department (TRD)
SUMMARY
House Bill 575 is entitled the “Sales and Use Tax Administration Act”. The act finds that sim-
plified sales and use taxes will serve to preserve and strengthen these taxes as a revenue source
for state and local government and will reduce the administrative burden on sellers. The bill au-
thorizes the state, represented by the Taxation and Revenue Department (TRD) Secretary, to par-
ticipate with other states that have sales taxes in negotiating the streamline sales tax initiative.
Implementation of the agreement requires adoption by the state legislature.
The bill does not carry an effective date and is presumed to take effect 90 days after the end of
the legislative session.
FISCAL IMPLICATIONS
There are no immediate fiscal implications for this bill. It simply authorizes the state to partici-
pate in negotiating the streamlined sales initiative.
TRD notes that if an agreement were implemented by the state, it would facilitate collections of
sales and use taxes on remote sales transactions, and thereby increase state and local revenues.
Their analysis suggests that taxes on these kinds of activities may represent as much as $125 mil-
lion of revenue per year in New Mexico (shared between state and local governments).