BILL ANALYSIS AND FISCAL IMPACT REPORT	Page 1 of  1

DATE:  February 15, 2001	Submitted by: TAXATION AND REVENUE DEPT.
	T. GLENN ELLINGTON, SECRETARY
BILL NUMBER: HB - 697

SPONSOR: Representative Thompson

BILL SHORT TITLE: Technical Amendment to Pass-Through Entity Withholding Provisions

DESCRIPTION: This bill adds investment partnerships to those entities not required to withhold New Mexico income tax, or to solicit a promise to file from out-of-state partners. Investment returns, including interest, dividends and sales of securities are apportioned to the partners domiciliary or resident state and are not taxable to New Mexico. Thus, this bill simplifies the paperwork chain.

EFFECTIVE DATE: applicable for tax years beginning on or after January 1, 2001

FISCAL IMPACT: none. Interest and dividends generated by an investment partnership with investments in New Mexico are wholly apportioned to the out-of-state partner’s state of residence or domicile. 

ADMINISTRATIVE IMPACT: minimal. The Department will not have to process payments and claims for refund for those few out-of-state partners that for one reason or another have not executed a promise to pay.