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F I S C A L I M P A C T R E P O R T
SPONSOR Taylor
ORIGINAL DATE
LAST UPDATED
1/24/06
HB 316
SHORT TITLE Underground Irrigation Tool Gross Receipts
SB
ANALYST Schardin
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
FY08
(331.0)
Recurring
General Fund
(221.0)
Recurring Local Governments
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates SB46.
SOURCES OF INFORMATION
LFC Files
Responses Received From
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
House Bill 316 amends Section 7-9-62 NMSA 1978 to expand the definition of agricultural im-
plements that receive a 50 percent deduction from gross receipts tax to include above and below-
ground produce irrigation systems that are used at a place where produce is grown.
The effective date of House Bill 316 is July 1, 2006.
FISCAL IMPLICATIONS
According to TRD, the USDA Census of Agriculture’s publication “2003 Farm and Ranch Irri-
gation Survey,” New Mexico farms spent nearly $17 million on irrigation equipment and ma-
chinery in 2003.