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

SPONSOR Anderson

ORIGINAL DATE

LAST UPDATED

1/30/08

HM 17/aHTRC

SHORT TITLE NMSU Personal Income Tax Task Force

SB

ANALYST Cox

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$0.1 see analysis

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico State University (NMSU)

SUMMARY

Synopsis of House Taxation and Revenue Committee Amendment

HTRC amendment provides ‘clean-up’ language. This language does not substantially affect this

Memorial [See page 2, line 9, strike “and" and on line 10, after “windows", insert"; and a

representative of the veterans services department". This language adds a member of Veterans

Services Department to this Task Force.

Synopsis of Original Bill

House Memorial 17 requests the Economics Department at New Mexico State University to

establish a task force to examine the economic benefit of providing a personal income tax

exemption for retainer pay made to retired military service personnel.

SIGNIFICANT ISSUES

Retired military personnel have significant resources to offer New Mexico and their retirement in

the state would provide economic development opportunities.

This Memorial honors veterans for their past service.

House Memorial 17/aHTRC – Page

2

The House Memorial further requests that the task force be:

•

chaired by an academic with established credentials in economics and that the task force

include:

•

two assigned personnel from the taxation and revenue department;

•

one person from the Economic Development Department;

•

one person with tax experience in New Mexico and with experience in federal tax law;

two persons appointed by the governor;

•

two persons recommended by the military officers association of America;

•

two enlisted retired military service personnel designated by veterans' associations;

•

and at least one woman representing retired military service personnel widows.

This House Memorial states that that the Task Force report its findings and recommendations to

the Appropriate Interim Committee of the legislature by December 15, 2008.

A copy of this Memorial should be transmitted to the Chair of the Economics Department at

New Mexico State University.

FISCAL IMPLICATIONS

This House Memorial may require some funding for per-diem and travel. Such a study may

require a multi-year effort. Furthermore, budgeted funds might need to be used from other

sources at New Mexico State University. NMSU states that this a large committee and some

additional funding, as per above, may be necessary

This House Memorial requests no funding.

DUPLICATE RELATIONSHIP

This Memorial is identical to Senate Joint Memorial 27.

POSSIBLE QUESTIONS

What travel and per-diem funds are necessary for this study, and for how long.

PRC/mt