Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are used for other purposes.
Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).
Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and
attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.
F I S C A L I M P A C T R E P O R T
SPONSOR Smith
ORIGINAL DATE
LAST UPDATED
2/2/06
HB
SHORT TITLE Disclosure of Personal Income Tax Info
SB 537
ANALYST Earnest
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
NONE
NONE
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicate HB 537.
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
Senate Bill 537 would amend Section 7-1-8 NMSA 1978 "Confidentiality of Returns and
Other Information" to allow the Taxation and Revenue Department to provide personal income
tax (PIT) information to:
the Bureau of Business and Economic Research and the earth data analysis center at the
University of New Mexico and
law enforcement agencies conducting joint investigations with the Taxation and Revenue
Department.
FISCAL IMPLICATIONS
No fiscal impact
SIGNIFICANT ISSUES
According to TRD, the new recipients of taxpayer information authorized by this bill will not be
subject to penalties for releasing confidential information.
Penalties for violating the confidentiality of taxpayer information (section 7-1-8) are specified in
section 7-1-76. Violating the confidentiality statute is a misdemeanor and is punishable by a fine
pg_0002
Senate Bill 537 Page 2
of $1,000 and one year of imprisonment, as well as prohibition from state employment for five
years following conviction. If the intent is to apply the same penalties to persons receiving in-
formation as proposed the statute should be amended accordingly.
TRD further notes that proposed paragraph (NN) specifies that the Bureau of Business and Eco-
nomic Research "shall not release the data in any form other than as statistics that protect tax-
payers identity...". The phrase probably should be reworded to specify something on the order of
"shall not release personal income tax data in any form that would reveal identity of taxpayers".
ADMINISTRATIVE IMPLICATIONS
Depending on the number of requests for taxpayer information, there could be substantial admin-
istrative impact on the Taxation and Revenue Department.
COMPANIONSHIP
Senate Bill 537 and House Bill 387 are duplicate measures.
BE/mt