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| SPONSOR: | Rawson | DATE TYPED: | 02/11/00 | HB | |||
| SHORT TITLE: | Employee Transportation Tax Credit | SB | 206 | ||||
| ANALYST: | Williams | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY00 | FY01 | |||
| $ (210,000.0) | $ (354,000.0) | Recurring | General Fund | |
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates/Conflicts with/Companion to/Relates to
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
This bill authorizes a personal income or corporate income tax credit to any employer who arranges or directly provides commuting transportation to and from work for any employee who earns less than $20,000 per year from that taxpayer.
FISCAL IMPLICATIONS
TRD estimates total recurring general fund revenue loss of $210,000 in FY01 and $354,000 for a full year. Approximately 47% of the total 508,000 private sector jobs in New Mexico pay less than $20,000 per year. TRD assumes about 95% of the private sector jobs are in for-profit entities, about 240 working days per day, 20 miles per eligible employee and that the employer is eligible for reimbursement of 32.5 cents per mile per employee.
ADMINISTRATIVE IMPLICATIONS
TRD estimates additional cost of $210.0 and an additional 5 FTE would be needed for revenue processing, financial services, audit and compliance and information systems.
TECHNICAL ISSUES
Effective date is not clear; an applicability clause should be added.
AW/gm