Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...
By William H. Carlile
PHOENIX—New Mexico Gov. Bill Richardson (D) Feb. 6 signed legislation designed to speed up payment of state corporate income taxes as part of the governor's deficit-reduction package. [S.B. 80, enacted 2/6/09]
The New Mexico Legislature adopted the measure by votes of 40-0 in the Senate Feb. 3, and 67-0 in the House Feb. 4. The bill is emergency legislation, meaning it took effect when the governor signed it.
Sen. John Arthur Smith (D), the bill's sponsor, told BNA Feb. 6 the new law gives “a one-time boost” to state revenues. A flaw in legislation adopted in 2003 put corporations on a three-payment estimated tax schedule, with the first payment falling due June 15 of each year, he said.
Smith told BNA the new law puts the state on a four-payment schedule, the same as that for personal income taxes, with the first payment due April 15.
The New Mexico Department of Taxation and Revenue predicted that restoring an estimated payment in April 2009 would increase general fund revenue by roughly 20 percent of corporate income tax liability, or $65 million, for fiscal year 2009.
The law applies to in-state, as well as out-of-state, firms doing business in New Mexico, Smith said.
New Mexico must eliminate a projected $450 million deficit in its current budget before the fiscal year ends June 30.
Additional information on S.B. 80 is available at http://www.nmlegis.gov/Sessions/09%20Regular/firs/SB0080.pdf.
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