NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

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

 

 

SPONSOR:

Lujan

 

DATE TYPED:

2/19/03

 

HB

168a/HTRC

 

SHORT TITLE:

Tax Reform Commission

 

SB

 

 

 

ANALYST:

Neel

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

$200.0

 

 

 

Non-Recurring

General Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates SB 277, Create Blue Ribbon Tax Reform Commission

 

SOURCES OF INFORMATION

 

LFC files.

 

SUMMARY

 

    Synopsis of HTRC Amendment

 

The House Taxation and Revenue Committee amendment expands the “Blue Ribbon Tax Reform Commission” from 17 members to 23.  The compositions of the commissions membership will be appointed as follows: 5 members of the House of Representatives appointed by the Speaker of the House; 5 members of the Senate appointed by the president pro tempore of the Senate; 11 public members appointed by the Governor; and an additional 2 public members appointed by the Speaker of the House and President Pro Tempore of the Senate. 

 

The amendment further specifies the commission shall examine the personal income tax reductions passed by the 2003 Legislature. The main piece of legislation that the “Blue Ribbon Tax Reform Commission will examine is Senate Bill 167, Income Tax Cuts which reduces New Mexico’s highest personal income tax rates from their current maximum of 8.2 % to 7.7% in tax year 2003; 6.8% in tax year 2004; 6.0% in tax year 2005; 5.3% in tax year 2006 and 4.9% in tax year 2007.

 

     Synopsis of Original Bill

 

House Bill 168 creates the Blue Ribbon Tax Reform Commission. The commission shall consist of 17 members. Three shall be appointed by the Speaker of the House and three shall be appointed by the President Pro Tempore of the Senate. Party affiliations shall be in the proportions prevailing in the respective houses. Eleven members will be appointed by the Governor, with at least one member representing municipal governments, one member representing county government and one member representing Native American tribes, pueblos and nations.

 

The purpose of the committee is to make recommendations for the reform of New Mexico’s tax laws. The Commission may hire or contract with staff and hear testimony.

    

The bill includes an emergency clause

 

FISCAL IMPACT

 

SB 277 appropriates $200.0 from the general fund to the legislative council service for expenditures in 2003 and 2004 to carry out the provisions of the Act.  Any unexpended or unencumbered balances remaining at the end of fiscal year 2004 shall revert to the general fund.

 

SN/prr:sb