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committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
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F I S C A L I M P A C T R E P O R T
SPONSOR Jennings
DATE TYPED 2-22-2005 HB
SHORT TITLE Leased Vehicle Surcharge Exemption
SB 430
ANALYST Taylor
REVENUE
Estimated Revenue
Subsequent
Years Impact
Recurring
or Non-Rec
Fund
Affected
FY05
FY06
($900.0)
Similar Recurring
General Fund
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Taxation and Revenue Department
SUMMARY
Senate Bill 430 would exempt New Mexico residents from the $2.00 per day surcharge for
leased vehicles.
The bill has an effective date of July 1, 2005.
FISCAL IMPLICATIONS
In FY04, leased vehicle surcharge brought in $5.9 million to the state general fund. Similar
amounts are expected in FY05 and FY06. Although it is difficult to estimate how much of this is
due to residents compared to non-residents, the revenue from residents is not inconsequential.
The Blue Ribbon Tax Commission considered an initiative to allow a deduction for replacement
vehicles. That deduction was estimated to reduce general fund revenues by $900 thousand. This
is likely the minimum impact, as it does not capture other possible leases by residents.
ADMINISTRATIVE IMPLICATIONS
TRD reports that the administrative impacts would be minimal and could be absorbed with exist-
ing resources.