SENATE BILL 118
50th legislature - STATE OF NEW MEXICO - first session, 2011
INTRODUCED BY
John M. Sapien
AN ACT
RELATING TO TAXATION; CREATING AN OPTIONAL DESIGNATION FOR A PERSONAL INCOME TAX CONTRIBUTION TO SUPPORT THE STATE EQUALIZATION GUARANTEE DISTRIBUTION; CREATING THE SCHOOL PROGRAM ENHANCEMENT FUND; PROVIDING FOR A DISTRIBUTION; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] DISTRIBUTION--SCHOOL PROGRAM ENHANCEMENT FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the school program enhancement fund of all amounts designated pursuant to Section 2 of this 2011 act as contributions to the school program enhancement fund."
SECTION 2. A new section of the Income Tax Act is enacted to read:
"[NEW MATERIAL] OPTIONAL DESIGNATION OF TAX REFUND CONTRIBUTION--SCHOOL PROGRAM ENHANCEMENT FUND.--
A. Except as otherwise provided in Subsection C of this section, any individual whose state income tax liability after application of allowable credits and tax rebates in any year is lower than the amount of money held by the department to the credit of that individual for that tax year may designate any portion of the income tax refund due to the individual to be paid to the school program enhancement fund. In the case of a joint return, both individuals shall make such a designation.
B. The department shall revise the state income tax form to allow the designation of contributions in the following form:
"School Program Enhancement Fund - Check [ ]
if you wish to contribute a part or all of your tax refund to the school program enhancement fund to help support the operational costs of educational programs at school districts and charter schools statewide. Enter here $_________ the amount of your contribution.".
C. The provisions of this section do not apply to income tax refunds subject to interception under the provisions of the Tax Refund Intercept Program Act, and any designation made under the provisions of this section to such refunds is void."
SECTION 3. A new section of the Public School Finance Act is enacted to read:
"[NEW MATERIAL] SCHOOL PROGRAM ENHANCEMENT FUND--CREATED--DISTRIBUTION.--
A. The "school program enhancement fund" is created in the state treasury. The fund shall consist of distributions made to the fund from receipts of the optional designation of personal income tax refunds made pursuant to Section 2 of this 2011 act. Income from the fund shall be credited to the fund. Money in the fund at the end of a fiscal year shall not revert to any other fund. The department shall administer the fund, and money in the fund is appropriated to the department to distribute pursuant to Subsection B of this section. Expenditures from the fund shall be made on warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of public education.
B. The purpose of the fund is to supplement the state equalization guarantee distribution to each school district and charter school in proportion to the total program cost of the school district and charter school and above the amount of the state equalization guarantee distribution to which a school district and charter school are entitled. Each year, the department shall distribute to each school district and charter school an amount determined by the department on a per program cost basis, which shall be in addition to the state equalization guarantee distribution made from the public school fund and pursuant to the general appropriation act. If money in the fund is insufficient to make a significant and equitable distribution to each school district and charter school, the department shall not make a distribution for that year. The department shall determine the allocations to each school district and charter school from the school program cost support fund, subject to the limits established by law."
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