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| SPONSOR: | Maloof | DATE TYPED: | 02/08/00 | HB | |||
| SHORT TITLE: | One Time Low Income Tax Rebate | SB | 407 | ||||
| ANALYST: | Williams | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY00 | FY01 | FY00 | FY01 | ||
| $ 100.0 | Non-recurring | General Fund | |||
(Parenthesis ( ) Indicate Expenditure Decreases)
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY00 | FY01 | |||
| $ (41,000.0) | $ (41,800.0) | Non-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
The bill authorizes a one-time tax rebate for resident taxpayers who are not dependents of another taxpayer and filed a New Mexico income tax return in 1999. The rebate is for a portion of gross receipts taxes paid during the taxable year. The rebate would range from $0 to $50 per exemption, depending on filing status and adjusted gross income. Inmates of public institutions for more than 6 months during the tax year would not be eligible. These provisions relating to the credit would be repealed January 1, 2002.
The bill appropriates $100.0 to TRD from the general fund for expenditure in FY00 and FY01 to carry out the provisions of the bill. The bill contains a reversion clause. The bill also contains an emergency clause.
Significant Issues
Counties and municipalities receive about 38 percent of the gross receipts tax generated within their boundaries, but this bill would hold them harmless.
FISCAL IMPLICATIONS
TRD estimates a non-recurring General Fund revenue loss of $41,000.0 in FY01 and $41,800.0 for a full year.
DISTRIBUTIONAL ISSUES
The bill would apply to low and moderate income households and about 57% of New Mexico's population would receive a rebate for tax year 1999. The breakout of the credit recipients is:
| Maximum Rebate of $50 | 72% of recipients |
| $35 Rebate | 11% |
| $25 Rebate | 9% |
| $15 Rebate | 8% |
TRD estimates over 550,000 households would receive a rebate averaging $85.
The attached chart in the TRD FIR reflects the amount of the rebate by filing status and household incomes.
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Attachment