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F I S C A L I M P A C T R E P O R T
SPONSOR Campos
ORIGINAL DATE
LAST UPDATED
1/24/06
HB 109
SHORT TITLE Military Acquisition Program Gross Receipts
SB
ANALYST Francis
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
FY08
NFI
Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Taxation and Revenue Department (TRD)
Responses Received From
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
House Bill 109 extends the repeal date for the gross receipts tax (GRT) deduction for transforma-
tional acquisition programs performing research and development, test and evaluation at New
Mexico major range and test facility bases until 2016. The expiration date in current law is
2008.
FISCAL IMPLICATIONS
The fiscal impact of HB 109 is zero. According to TRD, there is no activity eligible for the de-
duction occurring in the state at this time. There may be activity in the future due to the exten-
sion of the sunset date.
SIGNIFICANT ISSUES
While there has not been significant deductions so far, there may be new missions coming to
Cannon Air Force Base and Holloman Air Force Base in the next few years that will be eligible
for the deduction.
pg_0002
House Bill 109 Page 2
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL
The deduction will automatically be repealed even as a new qualifying mission comes to one of
the bases. This could be an issue in any mission site selection process.
NF/yr