SENATE BILL 343
48th legislature - STATE OF NEW MEXICO - first session, 2007
INTRODUCED BY
James G. Taylor
FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE
AN ACT
RELATING TO TAXATION; ALLOWING THE STATUTE OF LIMITATIONS TO BE SUSPENDED DURING A PROCEEDING TO QUASH AN ADMINISTRATIVE SUBPOENA ISSUED BY THE SECRETARY OF TAXATION AND REVENUE; MAKING TECHNICAL CORRECTIONS TO CERTAIN SECTIONS OF THE NMSA 1978 FOR TAX ADMINISTRATION AND ENFORCEMENT AND TO AID IN COMPLYING WITH THE TAX REFUND INTERCEPT PROGRAM ACT; PROVIDING FOR ONE SOLAR MARKET DEVELOPMENT TAX CREDIT PER MARRIED COUPLE; RECONCILING MULTIPLE AMENDMENTS TO THE SAME SECTION OF LAW IN LAWS 2005; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-1-4 NMSA 1978 (being Laws 1965, Chapter 248, Section 10, as amended) is amended to read:
"7-1-4. INVESTIGATIVE AUTHORITY AND POWERS.--
A. For the purpose of establishing or determining the extent of the liability of any person for any tax, for the purpose of collecting any tax, for the purpose of enforcing any statute administered under the provisions of the Tax Administration Act or for the purpose of investigating possible criminal violations of the revenue laws of this state, including fraud or other crimes that may affect the taxes due to the state, the secretary or the secretary's delegate is authorized to examine equipment and to examine and require the production of any pertinent records, books, information or evidence, to require the presence of any person and to require that person to testify under oath concerning the subject matter of the inquiry and to make a permanent record of the proceedings.
B. As a means for accomplishing the matters referred to in Subsection A of this section, the secretary is hereby invested with the power to issue subpoenas and summonses. In no case shall a subpoena or summons be made returnable less than ten days from the date of service.
C. Any subpoena or summons issued by the secretary shall state with reasonable certainty the nature of the evidence required to be produced, the time and place of the hearing, the nature of the inquiry or investigation and the consequences of failure to obey the subpoena or summons; shall bear the seal of the department; and shall be attested by the secretary.
D. After service of a subpoena or summons upon the person, if any person neglects or refuses to appear in response to the summons or neglects or refuses to produce records or other evidence or to allow the inspection of equipment in response to the subpoena or neglects or refuses to give testimony as required, the department may invoke the aid of the court in the enforcement of the subpoena or summons. In appropriate cases, the court shall issue its order requiring the person to appear and testify or produce books or records and may, upon failure of the person to comply with the order, punish the person for contempt.
E. If a person, the extent of whose tax liability is being established, or that person's agent, nominee or other person acting under the direction or control of that person, files an action with the court to quash a subpoena or summons issued by the secretary or that court pursuant to this section, the running of the period of limitations pursuant to Sections 7-1-18 and 7-1-19 NMSA 1978 or Section 30-1-8 NMSA 1978 with respect to the tax liability under investigation shall be suspended for the period during which a proceeding and related appeals regarding the enforcement of the subpoena or summons is pending."
Section 2. Section 7-2-5.8 NMSA 1978 (being Laws 2005, Chapter 104, Section 5) is amended to read:
"7-2-5.8. EXEMPTION FOR LOW- AND MIDDLE-INCOME TAXPAYERS.--
A. An individual may claim an exemption in an amount specified in Subsections B through D of this section not to exceed an amount equal to the number of federal exemptions multiplied by two thousand five hundred dollars ($2,500) of income includable, except for this exemption, in net income. [Individuals having income both within and without this state shall apportion this exemption in accordance with regulations of the secretary.]
B. For a married individual filing a separate return with adjusted gross income up to twenty thousand three hundred thirty-three dollars ($20,333):
(1) if the adjusted gross income is not over twelve thousand dollars ($12,000), the amount of the exemption pursuant to this section shall be two thousand five hundred dollars ($2,500) for each federal exemption; and
(2) if the adjusted gross income is over twelve thousand dollars ($12,000) but not over twenty thousand three hundred thirty-three dollars ($20,333), the amount of the exemption pursuant to this section for each federal exemption shall be calculated as follows:
(a) two thousand five hundred dollars ($2,500); less
(b) twenty percent of the amount obtained by subtracting twelve thousand dollars ($12,000) from the adjusted gross income.
C. For single individuals with adjusted gross income up to twenty-seven thousand one hundred ten dollars ($27,110):
(1) if the adjusted gross income is not over sixteen thousand dollars ($16,000), the amount of the exemption pursuant to this section shall be two thousand five hundred dollars ($2,500) for each federal exemption; and
(2) if the adjusted gross income is over sixteen thousand dollars ($16,000) but not over twenty-seven thousand one hundred ten dollars ($27,110), the amount of the exemption pursuant to this section for each federal exemption shall be calculated as follows:
(a) two thousand five hundred dollars ($2,500); less
(b) fifteen percent of the amount obtained by subtracting sixteen thousand dollars ($16,000) from the adjusted gross income.
D. For married individuals filing joint returns, surviving spouses or for heads of households with adjusted gross income up to forty thousand six hundred sixty-seven dollars ($40,667):
(1) if the adjusted gross income is not over twenty-four thousand dollars ($24,000), the amount of the exemption pursuant to this section shall be two thousand five hundred dollars ($2,500) for each federal exemption; and
(2) if the adjusted gross income is over twenty-four thousand dollars ($24,000) but not over forty thousand six hundred sixty-seven dollars ($40,667), the amount of the exemption pursuant to this section for each federal exemption shall be calculated as follows:
(a) two thousand five hundred dollars ($2,500); less
(b) ten percent of the amount obtained by subtracting twenty-four thousand dollars ($24,000) from the adjusted gross income.
[E. For the purposes of this section, "federal exemption" means an exemption allowable for federal income tax purposes for an individual included in the return who is domiciled in New Mexico.]"
Section 3. Section 7-2-18.14 NMSA 1978 (being Laws 2006, Chapter 93, Section 1) is amended to read:
"7-2-18.14. SOLAR MARKET DEVELOPMENT TAX CREDIT--RESIDENTIAL AND SMALL BUSINESS SOLAR THERMAL AND PHOTOVOLTAIC MARKET DEVELOPMENT TAX CREDIT.--
A. Except as provided in Subsection B of this section, a taxpayer who files an individual New Mexico income
tax return for a taxable year beginning on or after January 1, 2006 and who purchases and installs after January 1, 2006 but
before December 31, 2015 a solar thermal system or a photovoltaic system in a residence, business or agricultural enterprise in New Mexico owned by that taxpayer may apply for, and the department may allow, a solar market development tax credit of up to thirty percent of the purchase and installation costs of the system; provided that under no circumstances shall the federal and state tax credits allowed, when combined, total more than thirty percent of the purchase and installation cost of the system. To determine the amount of the state solar market development tax credit due pursuant to this section, the amount of the allowable federal tax credit, whether claimed or not claimed by the taxpayer, shall be deducted from thirty percent of the purchase and installation cost of the system. The total solar market development tax credit allowed for either a photovoltaic system or a solar thermal system shall not exceed nine thousand dollars ($9,000). The department shall allow solar market development tax credits only for solar thermal systems and photovoltaic systems certified by the energy, minerals and natural resources department.
B. Solar market development tax credits may not be claimed or allowed for:
(1) a heating system for a swimming pool or a hot tub; or
(2) a commercial or industrial photovoltaic system other than an agricultural photovoltaic system on a farm or ranch that is not connected to an electric utility transmission or distribution system.
C. The department may allow a maximum annual aggregate of:
(1) two million dollars ($2,000,000) in solar market development tax credits for solar thermal systems; and
(2) three million dollars ($3,000,000) in solar market development tax credits for photovoltaic systems.
D. A portion of the solar market development tax credit that remains unused in a taxable year may be carried forward for a maximum of ten consecutive taxable years following the taxable year in which the credit originates until fully expended.
E. Prior to July 1, 2006, the energy, minerals and natural resources department shall adopt rules establishing procedures to provide certification of solar thermal systems and photovoltaic systems for purposes of obtaining a solar market development tax credit. The rules shall address technical specifications and requirements relating to safety, code and standards compliance, solar collector orientation and sun exposure, minimum system sizes, system applications and lists of eligible components. The energy, minerals and natural resources department may modify the specifications and requirements as necessary to maintain a high level of system quality and performance.
F. A husband and a wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the credit provided in this section that would have been allowed on a joint return.
[F.] G. As used in this section:
(1) "photovoltaic system" means an energy system that collects or absorbs sunlight for conversion into electricity; and
(2) "solar thermal system" means an energy system that collects or absorbs solar energy for conversion into heat for the purposes of space heating, space cooling or water heating."
Section 4. Section 7-2C-5 NMSA 1978 (being Laws 1985, Chapter 106, Section 5, as amended) is amended to read:
"7-2C-5. DEPARTMENT TO AID IN COLLECTION OF DEBTS THROUGH SETOFF.--Subject to the limitations contained in the Tax Refund Intercept Program Act, the department, upon request, shall render assistance in the collection of any debt owed to a claimant agency or any debt that a claimant agency is obligated by law to collect. This assistance shall be provided by withholding from any refund due to the debtor pursuant to the Income Tax Act or the Corporate Income and Franchise Tax Act the amount of debt meeting the requirements of the Tax Refund Intercept Program Act and paying over to the claimant agency the amount withheld."
Section 5. Section 9-11-4 NMSA 1978 (being Laws 1977, Chapter 249, Section 4, as amended by Laws 2005, Chapter 108, Section 5 and by Laws 2005, Chapter 110, Section 6) is amended to read:
"9-11-4. DEPARTMENT ESTABLISHED.--There is created in the executive branch the "taxation and revenue department". The department shall be a cabinet department and shall consist of, but not be limited to, [six] seven divisions as follows:
A. the audit and compliance division;
B. the property tax division;
C. the revenue processing division;
D. the tax fraud investigations division; [and
D.] E. the motor vehicle division;
[E.] F. the administrative services division; and
[F.] G. the information technology division."
Section 6. APPLICABILITY.--The provisions of Sections 2, 3 and 4 of this act shall be applicable to taxable years beginning on or after January 1, 2007.
Section 7. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
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