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Bill > HB412

NM HB412

NM HB412
Tax Reform

summary

Introduced
01/21/2017
In Committee
02/11/2017
Crossed Over
01/26/2017
Passed
Dead
03/18/2017

Introduced Session

2017 Regular Session

Bill Summary

AN ACT RELATING TO TAXATION; CHANGING A DISTRIBUTION OF THE LIQUOR EXCISE TAX; DISTRIBUTING A PORTION OF THE MOTOR VEHICLE EXCISE TAX TO THE STATE ROAD FUND AND THE LOCAL GOVERNMENTS ROAD FUND; CREATING THE LOCAL GOVERNMENT STABILIZATION FUND; CREATING A SINGLE BRACKET AND A SINGLE RATE FOR THE INCOME TAX AND FOR THE CORPORATE INCOME TAX; UPDATING THE LOW-INCOME COMPREHENSIVE TAX REBATE; MODIFYING CERTAIN TAX CREDITS SO THAT THE CREDITS CANNOT BE APPLIED AGAINST MODIFIED COMBINED TAX LIABILITIES; RENAMING THE GROSS RECEIPTS TAXES TO THE STATE SALES TAX AND THE LOCAL OPTION SALES TAXES AND THE COMPENSATING TAX TO THE USE TAX; BASING THE RATE OF THE STATE AND LOCAL SALES TAXES ON A FORMULA USING ESTIMATES OF BASELINE AND REVENUE PROJECTIONS; PROVIDING THAT A PERSON WITHOUT PHYSICAL PRESENCE IN THIS STATE THAT HAS LESS THAN ONE HUNDRED THOUSAND DOLLARS ($100,000) IN GROSS RECEIPTS IS NOT ENGAGING IN BUSINESS; PROVIDING ALTERNATIVE EVIDENCE OTHER THAN A NONTAXABLE TRANSACTION CERTIFICATE TO ENTITLE PERSONS TO A DEDUCTION FROM GROSS RECEIPTS; DE-EARMARKING CERTAIN LOCAL OPTION TAXES; CHANGING A DEDUCTION FROM GROSS RECEIPTS FOR THE SALE OF FOOD TO BENEFICIARIES OF THE FEDERAL SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM; REQUIRING MUNICIPALITIES AND COUNTIES TO IMPOSE A LOCAL OPTION USE TAX; CHANGING PROVISIONS THAT LIMIT INCREASES IN VALUE OF RESIDENTIAL PROPERTY FOR PROPERTY TAXATION PURPOSES; NARROWING THE PREMIUM TAX IN LIEU OF PROVISION TO REVENUE AND RECEIPTS FOR WHICH THE PREMIUM TAX IS ASSESSED; PROVIDING THAT CHANGES OR REPEALS OF CERTAIN LOCAL OPTION GROSS RECEIPTS TAXES SHALL NOT IMPAIR OUTSTANDING REVENUE BONDS; PROVIDING A MORATORIUM ON NEW INCREMENTS OF LOCAL OPTION GROSS RECEIPTS OR SALES TAXES; PROVIDING THAT PREVIOUSLY DEDICATED REVENUE ATTRIBUTABLE TO A LOCAL OPTION GROSS RECEIPTS TAX SHALL CONTINUE TO BE DEDICATED FOR THE SAME PURPOSES; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978; PROVIDING A CIVIL PENALTY; MAKING AN APPROPRIATION.

AI Summary

This bill makes significant changes to New Mexico's tax system, including: - Changing the distribution of the liquor excise tax to fund the local DWI grant fund, magistrate drug courts, and the county-supported Medicaid fund. - Distributing a portion of the motor vehicle excise tax to the state road fund and the local governments road fund. - Creating the local government tax stabilization fund to help offset losses in local option sales tax revenue due to the changes in this act. - Changing the corporate and personal income tax to a flat 5% rate. - Updating the low-income comprehensive tax rebate. - Modifying certain tax credits so they cannot be applied against modified combined tax liabilities. - Renaming the gross receipts taxes to the state sales tax and local option sales taxes, and the compensating tax to the use tax. - Basing the rates of the state and local sales taxes on a formula using baseline and revenue projections. - Providing that persons without physical presence in the state with less than $100,000 in gross receipts are not engaging in business. - Allowing alternative evidence other than nontaxable transaction certificates to claim deductions. - De-earmarking certain local option taxes. - Changing the deduction for sale of food to SNAP beneficiaries. - Requiring municipalities and counties to impose a local option use tax. - Changing provisions limiting increases in residential property values for taxation. - Narrowing the premium tax in lieu of provision. - Providing a moratorium on new local option gross receipts or sales taxes. - Providing that previously dedicated revenue from local option gross receipts taxes shall continue to be dedicated.

Committee Categories

Budget and Finance, Transportation and Infrastructure

Sponsors (3)

Last Action

[LD 26] Referred to Senate Corporations & Transportation (on 02/11/2017)

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