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





SPONSOR: Jennings DATE TYPED: 02/11/00 HB
SHORT TITLE: One Time Income Tax Credit SB 444
ANALYST: Williams


REVENUE



Estimated Revenue
Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY00 FY01
$ (215,000.0) $ (226,000.0) 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



The bill would authorize a one-time tax credit to all taxpayers in New Mexico from savings realized by the Johnson Administration. The bill presents three areas where savings were projected:



Total of these savings components is $229,000.0.



FISCAL IMPLICATIONS



TRD reflects recurring general fund revenue loss of $215,00.0 in FY 01 and $226,000.0 for a full year. The Department notes this is equal to decreasing all income tax rates by 25 percent.



OTHER SUBSTANTIVE ISSUES



TRD notes the amount of the tax credit is not a function of actual savings realized.



TRD assumes the credit is non-refundable, i.e. only available to New Mexicans with positive income tax liability. Individuals with zero or negative income tax liability would not be eligible for the credit.



Non-residents with positive tax liabilities would be eligible for the credit.



AW/gm