HOUSE BILL 89
56th legislature - STATE OF NEW MEXICO - first session, 2023
James G. Townsend and Randall T. Pettigrew and
Candy Spence Ezzell
RELATING TO PUBLIC FINANCE; CREATING THE TAXPAYER DIVIDEND INCOME TAX REBATE FUND; PROVIDING FOR INCOME TAX REBATES; CHANGING A DISTRIBUTION OF FEDERAL MINERAL LEASING FUNDS TO THE EARLY CHILDHOOD EDUCATION AND CARE FUND TO THE TAXPAYER DIVIDEND INCOME TAX REBATE FUND; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 6-4-27 NMSA 1978 (being Laws 2020, Chapter 3, Section 4) is amended to read:
"6-4-27. EXCESS EXTRACTION TAXES SUSPENSE FUND--TRANSFER OF EXCESS OIL AND GAS EMERGENCY SCHOOL TAX REVENUE--TAX STABILIZATION RESERVE--[EARLY CHILDHOOD EDUCATION AND CARE] TAXPAYER DIVIDEND INCOME TAX REBATE FUND.--
A. The "excess extraction taxes suspense fund" is created as a nonreverting fund in the state treasury. Money in the fund shall only be used to make transfers by the department of finance and administration as required by this section.
B. At the end of each fiscal year, the department of finance and administration shall transfer the balance of the fund attributable to that fiscal year as follows:
(1) to the tax stabilization reserve, the amount necessary to bring the balance of state reserves to a level equal to twenty-five percent of the aggregate recurring appropriations for that fiscal year from the general fund, as determined by the department; provided that, if the balance in the excess extraction taxes suspense fund is not sufficient to meet that level, the entire balance shall be transferred to the tax stabilization reserve; and
(2) to the [early childhood education and care] taxpayer dividend income tax rebate fund, the balance remaining in the excess extraction taxes suspense fund, if any, after the transfer is made pursuant to Paragraph (1) of this subsection.
C. As used in this section, "state reserves" means the general fund balances, as determined by the department of finance and administration, including all authorized revenues and transfers to the general fund and balances in the appropriation contingency fund, the general fund operating reserve, the state-support reserve fund, the tax stabilization reserve and the tobacco settlement permanent fund."
SECTION 2. A new section of the Income Tax Act is enacted
"[NEW MATERIAL] TAXPAYER DIVIDEND INCOME TAX REBATE FUND--CREATED--INCOME TAX REBATES.--
A. The "taxpayer dividend income tax rebate fund" is created as a nonreverting fund in the state treasury. The fund shall consist of distributions, appropriations, gifts, grants and donations. The fund shall be administered by the department, and money in the fund is appropriated to the department to provide income tax rebates as provided by this section. Disbursements from the fund shall be made by warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of taxation and revenue or the secretary's designee.
B. A resident who files a New Mexico income tax return and who is not a dependent of another individual shall be eligible for a tax rebate pursuant to this section. The resident shall receive a rebate in an amount equal to the amount of money in the taxpayer dividend income tax rebate fund at the end of the previous calendar year divided by the total number of residents who filed an income tax return for that year. A rebate shall not be allowed for a return filed after May 31. Rebates shall be provided by the department as soon as practicable.
C. The rebates provided by this section may be
deducted from the taxpayer's New Mexico income tax liability. If the amount of rebate exceeds the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.
D. The department may require a taxpayer to claim a
rebate provided by this section on forms and in a manner
required by the department.
E. An annual report shall be submitted no later than October 1 each year to the legislative finance committee, the revenue stabilization and tax policy committee and any other appropriate interim committees on the cost of the rebates provided pursuant to this section and any other information necessary to evaluate the rebates."
SECTION 3. Section 22-8-34 NMSA 1978 (being Laws 1967, Chapter 16, Section 90, as amended) is amended to read:
"22-8-34. FEDERAL MINERAL LEASING FUNDS.--
A. Money received by the state pursuant to the provisions of the federal Mineral Leasing Act shall be distributed to the public school fund, except as follows:
(1) an annual appropriation to the instructional material fund;
(2) an annual appropriation to the board of regents of the New Mexico institute of mining and technology for the bureau of geology and mineral resources;
(3) the distribution made pursuant to Subsection B of this section; and
(4) the distribution made [pursuant to Section 3 of this 2020 act] to the taxpayer dividend income tax rebate fund pursuant to Section 4 of this 2023 act.
(1) a portion of the receipts, estimated by the taxation and revenue department to be equal to the amount that the state would have received as its share of royalties in the same fiscal year if the prepayment had not been made, shall be distributed to the public school fund; and
(2) the remainder shall be distributed to the common school permanent fund."
SECTION 4. [NEW MATERIAL] DISTRIBUTION--TAXPAYER DIVIDEND INCOME TAX REBATE FUND--PAYMENTS PURSUANT TO FEDERAL MINERAL LEASING ACT.--
A. If, by June 30 of each fiscal year, the net receipts for that fiscal year of the money received by the state pursuant to the federal Mineral Leasing Act exceed the annual average amount, the excess shall be distributed to the taxpayer dividend income tax rebate fund. If there is an excess amount, the distribution shall be made as soon as practicable. If there is not an excess amount, no distribution shall be made to the fund. The department of finance and administration shall make the calculation to determine if an excess amount shall be distributed.
B. As used in this section, "annual average amount" means the total net receipts attributable to money received by the state pursuant to the federal Mineral Leasing Act in the immediately preceding five fiscal years, divided by five.
SECTION 5. REPEAL.--Section 9-29A-3 NMSA 1978 (being Laws 2020, Chapter 3, Section 3) is repealed.
SECTION 6. APPLICABILITY.--The provisions of Section 2 of this act apply to taxable years beginning on or after January 1, 2023.
- 6 -