final report of governor richardson's budget balancing task force

8/14/2019 Final Report of Governor Richardson's Budget Balancing Task Force

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GOVERNOR RICHARDSONS BUDGET BALANCING TASK FORCE

December 22, 2009

On November 13, 2009 Governor Richardson created a Budget Balancing Task Force toreview, analyze and present pros and cons concerning numerous revenue-generatingoptions to help balance the states budget in light of significant revenue losses.The Task Force was required to conclude its work and submit a report to GovernorRichardson on its activities by December 21, 2009. To address the spending side

of the budget Governor Richardson created the Committee on Government Efficiency,which is being chaired by former Governor Garrey Carruthers and will makerecommendations for consideration by lawmakers.We are pleased to provide to you a list of the members and a table of options withrevenue estimates for each option contained in the Final Report of the BudgetBalancing Task Force. For your convenience the full report is available atwww.NMRevenueOptions.com.The report details activities of the Task Force:- schedule of meetings and attendance by members- table of options with revenue estimates- presentations of overviews and options

- additional material offered by Task Force members- meeting minutes- public input- press coverage.The Budget Balancing Task Force has reviewed the following options:Gross Receipts and Compensating TaxOption 1. Increase Gross Receipts Tax Rate1a. Increase rates .25%1b. Increase rates .5%1c. Increase rates 1.0%

Option 2. Increase Gross Receipts Tax Rate with Credit for Local Option RatesOption 3. Make compensating tax apply to sales in New MexicoOption 4. Make New Mexico purchasers location the place of business for out-of-state sellers with no New Mexico place of business or without nexus in New Mexicoand apply local option rates for compensating taxOption 5. Change Tax Treatment of the Food Deduction and Food Hold HarmlessDistributions5a. Repeal deduction and all hold harmless distributions


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5b. Repeal deduction, 5% credit, retain 1.225% hold harmless distribution5c. Repeal deduction, 5% credit, repeal all hold harmless distributions5d. Exclude candy and soft drinks from the definitions of food for purposes ofthe deductionOption 6. Expand LICTR and low- and middle-income exemption to mitigate effect ofchanges in tax treatment of food or other changes to the gross receipts tax orexcises

Option 7. Apply the Gross Receipts and Compensating Taxes to motor fuels7a. GRT on gasoline7b. 5% special fuel (diesel)7c. Combine 7a and 7bOption 8. Amend Insurer PreemptionMotor Vehicle Excise TaxOption 9. Increase Motor Vehicle Excise Tax9a. Increase rate 1%9b. Increase rate 2%9c. Increase rate 3%9d. Increase rate to average GRT rate

Insurance PremiumsOption 10. Increase Tax Rate on Health Insurance Premiums10a. Increase rate 1%10b. Increase rate 2%10c. Increase rate 3%10d. Increase rate to average GRT rateCigarette TaxOption 11. Increase the Cigarette Tax11a. Increase rate $.50/pack11b. Increase rate $1.00/pack

Tobacco TaxOption 12. Increase the Tobacco Products Tax12a. Increase rate to 40%12b. Rate equal to tobacco excise rate (with $.50 increase) + MSA rate on basisof tobacco content12c. Rate equal to tobacco excise rate (with $1.00 increase) + MSA rate on basisof tobacco contentOption 13. Repeal Native American Tax-Exempt Cigarette Stamps13a. Repeal tax-exempt under current tax rate13b. Repeal tax-exempt with $0.50 rate increase13c. Repeal tax-exempt with $1.00 rate increase13d. Keep $0.91 differential with $0.50 rate increase

13e. Keep $0.91 differential with $1.00 rate increaseLiquor Excise TaxOption 14. Uniform Rate on Beer, Wine, and Spirits Based on Alcohol Content14a. Single rate on alcohol content of each product14b. Rates on spirits, wine and beer that are equal based on average alcoholcontent14c. Rates equivalent to $0.10 per drinkPersonal Income TaxOption 15. Increase Personal Income Tax Rates


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15a. 1% surtax beginning at $100K (J and HoH), $50K (MFS), $67K (S) effective 1-1-1015b. 1% surtax beginning at $150K (J and HoH), $75K (MFS), $100K (S) effective1-1-1015c. 1% surtax beginning at $250K (J and HoH), $125K (MFS), $167K (S) effective1-1-1015d. 1% surtax beginning at $500K (J and HoH), $250K (MFS), $333K (S) effective1-1-10

15e. 1% surtax beginning at $100K (J and HoH), $50K (MFS), $67K (S) effective 1-1-1115f. 1% surtax beginning at $150K (J and HoH), $75K (MFS), $100K (S) effective1-1-1115g. 1% surtax beginning at $250K (J and HoH), $125K (MFS), $167K (S) effective1-1-1115h. 1% surtax beginning at $500K (J and HoH), $250K (MFS), $333K (S) effective1-1-11Option 16. Reduce the Capital Gains Deduction16a. Reduce deduction to 25% effective 1-1-1016b. Reduce deduction to 25% pro rata over $250K to $450K (J and HoH), $125K to$225K (MFS), $167K to $300K (S) effective 1-1-1016c. Reduce deduction to 25% effective 1-1-11

16d. Reduce deduction to 25% pro rata over $250K to $450K (J and HoH), $125K to$225K (MFS), $167K to $300K (S) effective 1-1-11Option 17. Repeal the Itemized Deduction for State and Local Taxes17a. Effective 1-1-1017b. Effective 1-1-11Option 18. Simplify the Personal Income TaxCorporate Income and Franchise Tax OverviewOption 19. Mandate Combined ReportingOption 19A. Decouple from Certain Federal Income Tax ProvisionsOption 20. Enact new, low-rate franchise tax based on property, payroll and salesin New Mexico above high thresholds20a. Raise $100 million/year and phase out CIT effective 1-1-10

20b. Raise $50 million/year, no change in CIT effective 1-1-1020c. Raise $100 million/year and phase out CIT effective 1-1-1120d. Raise $50 million/year, no change in CIT effective 1-1-11Income Tax Withholding OverviewOption 21. Tighten rules for pass-through entity (PTE) and oil and gas proceedswithholding on nonresidents, and require PTE quarterly paymentsEstate Tax OverviewOption 22. Decouple Estate Tax from Federal Credit22a. Effective 1-1-1022b. Effective 1-1-11

Oil and Natural Gas TaxesOption 23. Increase Emergency School Tax rate on oil from 3.15% to 4%23a. Effective 1-1-1023b. Effective 7-1-10Option 23A. Reduce oil and gas severance tax rate .25% and increase oil and gasemergency school tax rate .25%23Aa. Effective 1-1-10

23Ab. Effective 7-1-10Option 24. Add graduated rates based on benchmark oil and natural gas prices24a. Effective 1-1-1024b. Effective 7-1-10


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Uranium and Coal TaxesOption 25. Increase Tax Rates on Uranium to Match Rates on other Energy Resources25a. Raise rate to effective rate on oil25b. Raise rate to effective rate on natural gas25c. Raise rate to effective rate on coalOption 26. Repeal the Coal Surtax Exemption26a. Effective 1-1-10

26b. Effective 7-1-10Business Incentive Tax CreditsOption 27. Adopt uniform language that addresses the goal of the credit, the basefor the credit, performance standards, recapture, etc.Option 28. Require additional reporting by credit recipients, making informationon recipients public, periodic reports on effectiveness in meeting goalsTax Compliance and Administration RulesOption 29. Provide TRD broad authority to reallocate receipts, income, deductions,exemptions, and other items among entities to properly reflect tax liabilities andcreditsOption 30. Increase penalties for failure to file or pay liabilities and for

willful evasionOption 31. Expand requirements for information reporting and special payment rulesOption 32. Require in-state contractors to post bondsOption 33. Require State and local governments to collect and remit tax oncontractsOption 34. Increase administrative fee to cover all distributions to localgovernmentsTo develop these options, the Task Force referred to the 2003 Blue Ribbon TaxReform Commission, recent legislative proposals, listened to issues raised by theTask Force members, public input and monitored proposals currently being suggestedby various parties.

The Task Force held a total of five meetings at various locations around the State(see meeting schedule below). All of the meetings were open to the public and allmeetings provided scheduled time for public input.Date

Time

City

LocationNovember 16, 2009

1:00 p.m. 5:00 p.m.

Santa Fe

Santa Fe Community CollegeJemez Room6401 S Richards AvenueNovember 19, 2009

1:00 p.m. 5:00 p.m.


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Albuquerque

Expo New MexicoYouth Hall300 San Pedro Drive NEDecember 1, 2009

1:00 p.m. 5:00 p.m.

Las Cruces

Farm and Ranch MuseumTortugas Room4100 Dripping Springs RoadDecember 10, 2009

1:00 p.m. 5:00 p.m.

Farmington

Civic Center

Theater800 Municipal DriveDecember 17, 2009

1:00 p.m. 5:00 p.m.

Santa Fe

Santa Fe Community CollegeJemez Room6401 S Richards Avenue

Sincerely yours,Rick HomansChairmanBudget Balancing Task Force

Budget Balancing Task Force MembershipChairRick Homans, Cabinet Secretary, New Mexico Taxation and Revenue DepartmentTask Force MembersCarolyn Abeita, Regent, University of New Mexico

Steve Anaya, Executive Vice President, Realtors Association of New MexicoRichard Anklam, President and Executive Director, New Mexico Tax ResearchInstituteOdes Armijo-Caster, President, Renewable Energy Industries AssociationBob Barberousse, Cigar Association of AmericaKathi Bearden, Former Publisher, Hobbs News-SunJim Berry, President and Chief Executive Officer, Las Cruces Chamber of CommerceCharles Bowyer, Executive Director, National Education AssociationCarter Bundy, Legislative Director, American Federation of State and MunicipalEmployeesGayla Brumfield, Mayor, City of Clovis


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Don Chalmers, Principal Dealer, Don Chalmers FordRick Clemente, Production Central AlbuquerqueTerri L. Cole, President and Chief Executive Officer, Greater Albuquerque Chamberof CommerceCaren Cowan, Executive Director, New Mexico Cattle Growers AssociationPat DArco, Chairman, Rio Rancho Planning & Zoning BoardDiane Denish, Lieutenant Governor, State of New MexicoBill Fulginiti, Executive Director, New Mexico Municipal League

Leo Garza, Legislative Committee Chair, AARP New MexicoJackson Gibson, Member, District 6, Transportation CommissionLeland Gould, Director of Government Affairs, Western RefiningJami Grindatto, Corporate Affairs Director, IntelPaul Gutierrez, Executive Director, New Mexico Association of CountiesJim Hinton, President, Presbyterian Health ServicesRuth Hoffman, Director, Lutheran Advocacy Ministry - New MexicoJohn Horton, Director, Public Policy and Government Relations, Associated GeneralContractorsBill Jordan, Policy Director, Voices for ChildrenLeanne Leith, Political and Programs Director, Conservation Voters New MexicoSharon Lombardi, Executive Director, Dairy Producers of New MexicoRaymond Mondragon, Chair, New Mexico Economic Development Partnership

Bob Murphy, Executive Director, Economic Forum of AlbuquerqueFred Nathan, Executive Director, Think New MexicoFred OCheskey, Southwest Public Affairs, LLCEarl Potter, Hotel Santa Fe and Five & Dime General StoresAlex Romero, President and Chief Executive Officer, Albuquerque Hispano Chamber ofCommerceJoshua Rosen, Chief of Staff, State of New Mexico, Office of Lt. Governor DianeDenishAllen Sanchez, President and Chief Executive Officer, St. Joseph Community HealthDavid S. Smoak, President, RSF Land and Cattle Co.Mark Thompson, Lieutenant Governor, Acoma PuebloTony Trujillo, Government Relations Director, Freeport McMoRan Copper and GoldThom Turbett, President and Chief Executive Officer, Independent Insurance Agents

of New MexicoJerry Walker, President and Chief Executive Officer, Independent Community BankersAssociation of New MexicoMichelle Welby, Director, Medical Operations, Molina Healthcare of New MexicoChuck Wellborn, Wellborn Strategies, LLCCarol Wight, Chief Executive Officer, New Mexico Restaurant Association

Governor Richardsons Budget Balancing Task ForceOptions with Revenue EstimatesOption

Estimated Revenue Impact (000)

Fund(s) AffectedEffective

FY10

FY11

FY12


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FY13

FY14

FY10-14Gross Receipts and Compensating Taxes1. Increase rates1a. Increase rates .25%

1b. Increase rates .5%1c. Increase rates 1%

7-1-107-1-107-1-10

000

120,360240,721481,442

126,980253,961507,921

133,583267,166

534,333

139,461278,922557,844

520,3851,040,7702,081,540

General FundGeneral FundGeneral Fund2. Increase rates 1% with credit for local rates (no tax increase insidemunicipalities)

7-1-10

0

117,000


8/45

113,000

119,000

124,000

463,000

General Fund0

1,500

1,600

1,700

1,800

6,600

Counties3. Make compensating tax apply to sales in New Mexico

7-1-10

0

11,600

12,200

12,900

13,500

50,200

General Fund0

2,500

2,700

2,800

3,000

11,000

Municipalities0

1,600

1,700


9/45

1,800

1,800

6,900

Counties

0

15,700

16,600

17,500

18,300

68,100

Total

4. Make New Mexico purchasers location the place of business for out-of-state sellers with no NM place of business or without nexus in NM and apply localoption rates for compensating tax

7-1-10

0

(16,000)

(17,000)

(18,000)

(19,000)

(70,000)

General Fund0

68,000

71,000

75,000

77,000

292,000

Municipalities0

23,000

24,000


10/45

25,000

27,000

99,000

Counties

0

75,000

78,000

82,00

85,00

321,000

Total

5. Change tax treatment of food and associated hold harmless distributions:

5a. Repeal deduction and all hold harmless distributions

7-1-10

0

228,000

239,000

250,000

262,000

979,000

General Fund0

0

0

0

0

0

Municipalities0


11/45

0

0

0

0

0

Counties5b. Repeal deduction, 5% credit, retain 1.225 hold harmless distribution

7-1-10

0

68,000

71,000

76,000

79,000

294,0000

General Fund0

0

0

0

0

0

Municipalities0

0

0

0

0

0

Counties5c. Repeal deduction, 5% credit, repeal all hold harmless distributions

7-1-10


12/45

0

104,000

109,000

115,000

120,000

448,000

General Fund

(36,000)

(38,000)

(40,000)

(42,000)

(155,000)

Municipalities0

0

0

0

0

0

Counties5d. Exclude candy and soft drinks from the definition of food for purposes ofthe deduction

7-1-10

0


13/45

18,000

19,000

20,000

21,000

78,000

General Fund

6. Expand LICTR and low- and middle-income exemption to mitigate effect ofchanges in tax treatment of food or other changes to the gross receipts tax orexcises

1-1-10

0

(21,378)

(21,749)

(22,126)

(22,509)

(87,762)

General Fund7. Include motor fuels in gross receipts tax base:

7a. GRT on gasoline

7-1-10

0

98,700

98,700

98,700


14/45

98,700

394,800

General Fund0

49,450

49,450

49,450

49,450

197,800

Municipalities0

16,350

16,350

16,350

16,350

65,400

Counties0

11,200

11,200

11,200

11,200

44,800

Pueblos/Tribes0

175,700

175,700

175,700

175,700

702,800

Total


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7b. 5% special fuel (diesel)

7-1-10

0

68,750

68,750

68,750

68,750

275,000

General Fund7c. Combine 7a and 7b

7-1-10

0

167,450

167,450

167,450

167,450

669,800

General Fund

8. Repeal gross receipts tax exemption for receipts of insurance companiesnot subject to insurance premium tax

7-1-10

0

6,135

6,748

7,423

8,165

28,471

General Fund0

4,420

4,862


16/45

5,348

5,883

20,513

Municipalities0

939

1,033

1,137

1,250

4,359

Counties0

11,494

12,643

13,908

15,298

53,343

TotalMotor Vehicle Excise

9. Increase rate9a. Increase rate 1%9b. Increase rate 2%9c. Increase rate 3%9d. Increase rate to average GRT rate

7-1-107-1-107-1-107-1-10

0000

34,30068,700103,000140,800


17/45

37,70075,300113,000154,400

39,000

78,000117,000159,900

40,70081,300122,000166,700

151,700303,300

455,000621,800

General FundGeneral FundGeneral FundGeneral FundInsurance Premium Tax10. Increase rate on health insurance premiums10a. Increase rate 1%10b. Increase rate 2%10c. Increase rate 3%

10d. Increase rate to average GRT rate

1-1-111-1-111-1-111-1-11

000

0

19,20038,40057,60059,500

42,30084,600


18/45

126,900131,100

46,50093,000139,500144,100

51,200102,400153,600158,700

159,200318,400477,600493,400

General FundGeneral FundGeneral FundGeneral FundTobacco Taxes11. Increase rate and adjust distributions and stamp discounts11a. Increase rate $.50/pack11b. Increase rate $1.00/pack

7-1-107-1-10

00

20,47433,145

20,47433,145


19/45

20,47433,145

20,47433,145

81,896132,580

General FundGeneral Fund12. Increase Tobacco Products Tax12a. Increase rate to 40%12b. Rate equal to tobacco excise rate (with $.50 increase) + MSA rate on basisof tobacco content12c. Rate equal to tobacco excise rate (with $1.00 increase) + MSA rate on basisof tobacco content

7-1-107-1-10

7-1-10

0

0

0

3,0506,550


20/45

7,700

3,1506,750

7,900

3,3007,000

8,300

3,4007,200

8,500

12,900

27,500

32,400

General FundGeneral Fund

General Fund13. Repeal tax-exempt stamp provisions and make distributions to new Tribal Fundfor allocation to Nations, tribes and pueblos

13a. Repeal tax-exempt under current tax rate

7-1-10

0


21/45

4,900

4,950

5,000

5,050

19,900

Tribal Fund0

23,300

23,250

23,200

23,150

92,900

General Fund13b. Repeal tax-exempt with $0.50 rate increase

7-1-10

0

7,600

7,670

7,740

7,800

30,810

Tribal Fund0

39,900

39,830

39,760

39,700

159,100

General Fund13c. Repeal tax-exempt with $1.00 rate increase


22/45

7-1-10

0

10,300

10,400

10,500

10,600

41,800

Tribal Fund0

59,300

59,200

59,100

59,000

263,600

General Fund13d. Keep $0.91 differential with $0.50 rate increase

7-1-10

0

2,700

2,725

2,750

2,775

10,950

Tribal Fund0

18,200

18,175

18,150

18,125

72,650

General Fund


23/45

13e. Keep $0.91 differential with $1.00 rate increase

7-1-10

0

5,400

5,450

5,500

5,550

21,900

Tribal Fund0

39,050

39,000

38,950

38,900

155,900

General FundLiquor Excise Tax14. Apply uniform rate to spirits, wine and beer based on alcohol content14a. Single rate on alcohol content of each product14b. Rates on spirits, wine and beer that are equal based on average alcohol

content14c Rates equivalent to $0.10 per drink

7-1-107-1-10

7-1-10

00

0


24/45

18,00017,880

42,600

18,10018,000

43,100

18,20018,100

43,500

18,30018,200

44,100

72,60072,180

130,700


25/45


General Fund

Personal Income Tax (PIT)15. Increase PIT rates:15a. 1% surtax beginning at $100K (J and HoH), $50K (MFS), $67K (S)15b. 1% surtax beginning at $150K (J and HoH), $75K (MFS), $100K (S)15c. 1% surtax beginning at $250K (J and HoH), $125K (MFS), $167K (S)15d. 1% surtax beginning at $500K (J and HoH), $250K (MFS), $333K (S)15e. 1% surtax beginning at $100K (J and HoH), $50K (MFS), $67K (S)15f. 1% surtax beginning at $150K (J and HoH), $75K (MFS), $100K (S)15g. 1% surtax beginning at $250K (J and HoH), $125K (MFS), $167K (S)15h. 1% surtax beginning at $500K (J and HoH), $250K (MFS), $333K (S)

1-1-10

1-1-10

1-1-10

1-1-10

1-1-11

1-1-11

1-1-11

1-1-11

7,836

5,123

3,161

1,704

0


26/45

0

0

0

74,960

56,291

41,457

28,235

34,227

25,839

19,093

12,951

85,127

64,622

48,067

32,929

70,754

53,556

39,676

26,996

77,588


27/45

59,008

43,918

30,038

77,588

59,008

43,918

30,038

82,460

62,977

47,065

32,340

82,460

62,977

47,065

32,340

327,971

248,021

183,668

125,246

265,029


28/45

201,380

149,753

102,325

General Fund

General Fund

General Fund

General Fund

General Fund

General Fund

General Fund

General Fund16. Reduce capital gains deduction16a. Reduce deduction to 25%16b. Reduce deduction to 25% pro rata over $250K to $450K (J and HoH), $125K to$225K (MFS), $167K to $300K (S)

16c. Reduce deduction to 25%16d. Reduce deduction to 25% pro rata over $250K to $450K (J and HoH), $125K to$225K (MFS), $167K to $300K (S)

1-1-101-1-10

1-1-111-1-11

12,0778,020


29/45

00

28,45319,109

16,40011,105

37,37825,506

36,60924,996

45,30431,177

45,30431,177

52,17836,548

52,17836,548


30/45

175,120120,360

150,221103,826


General FundGeneral Fund17. Repeal itemized deduction for state and local taxes (adjusted pro rata forthe limitation on itemized deductions)17a. Effective 1-1-1017b. Effective 1-1-11

1-1-101-1-11

3,6000

65,40023,200


31/45

47,30047,300

50,90050,900

53,50053,500

395,592395,592

General Fund

General Fund18. Simplify PIT

1-1-10

0

1,551

1,698

1,516

1,689

6,454

General FundCorporate Income Tax (CIT)19. Mandate combined reporting

1-1-11

0


32/45

5,700

32,200

18,900

7,600

64,500

General Fund19A. Decouple from federal bonus depreciation, domestic production activitiesdeduction and CODI effective 1-1-10

1-1-10

2,500

8,300

11,300

11,800

12,000

45,900

General Fund20. Enact new, low-rate franchise tax based on property, payroll and sales in NewMexico above high thresholds20a. Raise $100 million/year and phase out CIT20b. Raise $50 million/year, no change in CIT

20c. Raise $100 million/year and phase out CIT20d. Raise $50 million/year, no change in CIT

1-1-10

1-1-10

1-1-11

1-1-11


33/45

40,000

20,000

0

0

100,000

50,000

40,000

20,000

100,000

50,000

100,000

50,000

100,000

50,000

100,000

50,000


34/45

100,000

50,000

100,000

50,000

440,000

220,000

340,000

170,000

General Fund

General Fund

General Fund

General FundIncome Tax Withholding21. Tighten rules for pass-through entity (PTE) and oil and gas proceedswithholding on nonresidents, and require PTE quarterly payments

1-1-11

0

15,600


35/45

9,800

10,100

10,500

46,000

General FundEstate Tax22. Decouple estate tax from federal credit (using IRC section 2011 ratestructure)22a. Effective 1-1-1022b. Effective 1-1-11

1-1-101-1-11

00

31,6000

44,00033,000

45,80045,800

47,80047,800

297,813297,813


36/45

General FundGeneral FundOil and Gas Taxes23. Increase Emergency School Tax rate on oil from 3.15% to 4%23a. Effective 1-1-1023b. Effective 7-1-10

1-1-107-1-10

16,7670

35,09135,091

36,32636,326

37,46737,467

38,60938,609

164,260147,493

General Fund

General Fund23A. Reduce oil and gas severance tax rate .25% and increase oil and gasemergency school tax rate .25%23Aa. Effective 1-1-10

23Ab. Effective 7-1-10

1-1-10

7-1-10

10,550(10,550)00

23,300(23,300)23,300(23,300)


37/45

23,884(23,884)23,884(23,884)

24,460

(24,460)24,460(24,460)

24,893(24,893)24,893(24,893)

107,085(107,085)

96,536(96,356)

General FundSTBFGeneral FundSTBF24. Add graduated rates based on benchmark oil and natural gas prices24a. Effective 1-1-1024b. Effective 7-1-10

1-1-107-1-10

49,6910

119,478119,478

122,854122,854


38/45

126,081126,081

128,734128,734

546,838497,147

General FundGeneral FundUranium and Coal Taxes25. Increase rates on uranium to levels comparable to rates on other energyresources25a. Raise rate to effective rate on oil25b. Raise rate to effective rate on natural gas25c. Raise rate to effective rate on coal

7-1-107-1-107-1-10

1,8861,896

1,406

These are hypothetical amounts based on 1 million pounds of U3O8 production at thecurrent price of $49.50 per pound.


39/45


General Fund26. Repeal coal surtax exemption26a. Effective 1-1-1026b. Effective 7-1-10

1-1-107-1-10

6,2800

23,21923,219

22,05822,058

20,95520,955

19,908

19,908

92,42086,140


40/45

STBFSTBFBusiness Incentive Credits27. Adopt uniform language that addresses the goal of the credit, the base forthe credit, performance standards, recapture, etc.

1-1-11

No direct revenue effect.28. Require additional reporting by credit recipients, making information onrecipients public, periodic reports on effectiveness in meeting goals

1-1-11

No direct revenue effect.Tax Compliance29. Provide TRD broad authority to reallocate receipts, income, deductions,exemptions, and other items among entities to properly reflect tax liabilities andcredits

7-1-10

0

250

500

750

800

2,300

General Fund0

50

100

150

160

460

Municipalities0

15

30

45

45


41/45

135

Counties0

315

630

945

1,045

2,895

Total30. Increase penalties for failure to file or pay liabilities and for willfulevasion

7-1-10

0

500

500

500

500

2,000

General Fund31. Expand requirements for information reporting and special payment rules

7-1-10

0

450

360

360

120

1,290

General Fund0

225

180


42/45

180

60

645

Municipalities0

75

60

60

20

215

Counties0

1,880

2,360

2,990

2,750

9,940

Total32. Require in-state contractors to post bonds

7-1-10

0

10,763

11,355

11,946

12,471

46,535

General Fund0

4,443

4,688

4,932


43/45

5,149

19,212

Municipalities0

1,545

1,630

1,714

1,790

6,679

Counties0

16,751

17,673

18,592

19,410

72,426

Total33. Require State and local governments to collect and remit tax on contracts

7-1-10

0

3,051

2,384

2,508

2,618

10,562

General Fund0

1,573

1,229

1,293

1,350


44/45

5,446

Municipalities0

547

427

450

469

1,893

Counties0

5,172

4,041

4,251

4,438

17,901

Total34. Increase administrative fee to cover all distributions to local governments

7-1-10

0

(5,204)

(5,479)

(5,757)

(6,017)

(22,457)

Municipalities0

5,142

5,422

5,702

5,955

22,221


45/45

Counties0

(11)

(16)

(22)

(31)

(80)

TIDDs0

73

77

81

85

316

Pueblos0

0

4

4

(8)

0

Total (General Fund)

final report of governor richardson's budget balancing task force

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