BILL ANALYSIS AND FISCAL IMPACT REPORT	Page 1 of  1

DATE:  February 18, 2001	Submitted by: TAXATION AND REVENUE DEPT.
	T. GLENN ELLINGTON, SECRETARY
BILL NUMBER: HB-832

SPONSOR: Representative Whitaker

BILL SHORT TITLE: Personal Income Tax Status Same As Federal

DESCRIPTION: This bill requires all New Mexico residents and persons deriving income from business, property rental or employment in the state to file a tax return with the state, providing that these persons are required to file a federal return – whether they file the federal return or not. Additionally, the state return must use the same filing status and number of personal exemptions as the taxpayer declared for federal income tax purposes.

EFFECTIVE DATE: not stated – 90 days after adjournment (June 17). By default, this applies to tax returns filed for the 2001 tax year.

FISCAL IMPACT: indeterminate. The major change in the bill is to require the same personal exemptions and filing status as the federal return. This elevates to statute the longstanding policy of this Department, as expressed in instructions and regulations.

ADMINISTRATIVE IMPACT: minimal on processing. This may aid the tape match program of state to federal returns.