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

SPONSOR Taylor

ORIGINAL DATE

LAST UPDATED

2/2/07

3/15/07 HB

SHORT TITLE Tolling Time Limit For Tax Court Action

SB 343/aSFL#1/aHTRC

ANALYST Francis

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

NFI

Recurring General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

Relates to SB795

SOURCES OF INFORMATION

LFC Files

Responses Received From

Energy Minerals and Natural Resources (EMNR)

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of HTRC amendment

The House Taxation and Revenue Committee struck the Senate Floor Amendment to Senate Bill

343, restoring the bill to its original state.

Synopsis of SFL #1

Senate Bill 343 was amended on the Senate Floor to expand the credit to limited liability

companies or business associations. This would allow builders and developers to take advantage

of the credit.

Synopsis of Original Bill

Senate Bill 343 makes several technical corrections to the tax statutes:

•

Section 1: In the section of the statute governing the secretary of the Taxation and

Senate Bill 343/aSFL#1/aHTRC – Page

2

Revenue Department’s (TRD) subpoena power, the amendment clarifies that any timeline

for establishing a taxpayer’s liability is suspended while the Secretary’s subpoena is

challenged in court. Current law only refers to a subpoena issued by a court.

•

Section 2: allows individuals who have apportioned income (“B filers") or who are not

domiciled in NM to use the number of federal exemptions without modification to

determine the amount of LICTR.

•

Section 3: Clarifies that a married couple filing separately cannot both claim the full

amount of the solar market development credit.

•

Section 4: Includes the corporate income tax in TRD’s scope for intercepting tax refunds

for taxpayers with debts to another agency that has asked TRD for assistance.

•

Section 5: Corrects language that used the word “six" to refer to a list of seven items.

FISCAL IMPLICATIONS

The amendment restoring the original cancels the fiscal impact that resulted when solar

systems purchased by businesses were included.

The technical corrections have no fiscal impact. For the solar market development credit, it was

assumed in original estimates that married filing separately filers would only receive one credit.

The Senate Floor amendment may increase the adoption schedule of solar systems which may

increase the amount of credits claimed in FY08.

NF/mt