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GOVERNOR RICHARDSON’S BUDGET BALANCING TASK FORCE

December 22, 2009

On November 13, 2009 Governor Richardson created a Budget Balancing Task Force to
review, analyze and present pros and cons concerning numerous revenue-generating
options to help balance the state’s budget in light of significant revenue losses.
The Task Force was required to conclude its work and submit a report to Governor
Richardson 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 make
recommendations for consideration by lawmakers.

We are pleased to provide to you a list of the members and a table of options with
revenue estimates for each option contained in the Final Report of the Budget
Balancing Task Force. For your convenience the full report is available at
www.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 Tax


Option 1. Increase Gross Receipts Tax Rate
1a. Increase rates .25%
1b. Increase rates .5%
1c. Increase rates 1.0%

Option 2. Increase Gross Receipts Tax Rate with Credit for Local Option Rates

Option 3. Make compensating tax apply to sales in New Mexico

Option 4. Make New Mexico purchaser’s location the place of business for out-of-
state sellers with no New Mexico place of business or without nexus in New Mexico
and apply local option rates for compensating tax

Option 5. Change Tax Treatment of the Food Deduction and Food “Hold Harmless”
Distributions
5a. Repeal deduction and all hold harmless distributions
5b. Repeal deduction, 5% credit, retain 1.225% hold harmless distribution
5c. Repeal deduction, 5% credit, repeal all hold harmless distributions
5d. Exclude candy and soft drinks from the definitions of food for purposes of
the deduction

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

Option 7. Apply the Gross Receipts and Compensating Taxes to motor fuels
7a. GRT on gasoline
7b. 5% special fuel (diesel)
7c. Combine 7a and 7b
Option 8. Amend Insurer Preemption

Motor Vehicle Excise Tax


Option 9. Increase Motor Vehicle Excise Tax
9a. Increase rate 1%
9b. Increase rate 2%
9c. Increase rate 3%
9d. Increase rate to average GRT rate

Insurance Premiums
Option 10. Increase Tax Rate on Health Insurance Premiums
10a. Increase rate 1%
10b. Increase rate 2%
10c. Increase rate 3%
10d. Increase rate to average GRT rate

Cigarette Tax
Option 11. Increase the Cigarette Tax
11a. Increase rate $.50/pack
11b. Increase rate $1.00/pack

Tobacco Tax
Option 12. Increase the Tobacco Products Tax
12a. Increase rate to 40%
12b. Rate equal to tobacco excise rate (with $.50 increase) + MSA rate on basis
of tobacco content

12c. Rate equal to tobacco excise rate (with $1.00 increase) + MSA rate on basis
of tobacco content
Option 13. Repeal Native American Tax-Exempt Cigarette Stamps
13a. Repeal tax-exempt under current tax rate
13b. Repeal tax-exempt with $0.50 rate increase
13c. Repeal tax-exempt with $1.00 rate increase
13d. Keep $0.91 differential with $0.50 rate increase
13e. Keep $0.91 differential with $1.00 rate increase

Liquor Excise Tax


Option 14. Uniform Rate on Beer, Wine, and Spirits Based on Alcohol Content
14a. Single rate on alcohol content of each product
14b. Rates on spirits, wine and beer that are equal based on average alcohol
content
14c. Rates equivalent to $0.10 per drink

Personal Income Tax


Option 15. Increase Personal Income Tax Rates
15a. 1% surtax beginning at $100K (J and HoH), $50K (MFS), $67K (S) effective 1-
1-10
15b. 1% surtax beginning at $150K (J and HoH), $75K (MFS), $100K (S) effective
1-1-10
15c. 1% surtax beginning at $250K (J and HoH), $125K (MFS), $167K (S) effective
1-1-10
15d. 1% surtax beginning at $500K (J and HoH), $250K (MFS), $333K (S) effective
1-1-10
15e. 1% surtax beginning at $100K (J and HoH), $50K (MFS), $67K (S) effective 1-
1-11
15f. 1% surtax beginning at $150K (J and HoH), $75K (MFS), $100K (S) effective
1-1-11
15g. 1% surtax beginning at $250K (J and HoH), $125K (MFS), $167K (S) effective
1-1-11
15h. 1% surtax beginning at $500K (J and HoH), $250K (MFS), $333K (S) effective
1-1-11
Option 16. Reduce the Capital Gains Deduction
16a. Reduce deduction to 25% effective 1-1-10
16b. Reduce deduction to 25% pro rata over $250K to $450K (J and HoH), $125K to
$225K (MFS), $167K to $300K (S) effective 1-1-10
16c. 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 1-1-11
Option 17. Repeal the Itemized Deduction for State and Local Taxes
17a. Effective 1-1-10
17b. Effective 1-1-11
Option 18. Simplify the Personal Income Tax

Corporate Income and Franchise Tax Overview


Option 19. Mandate Combined Reporting
Option 19A. Decouple from Certain Federal Income Tax Provisions
Option 20. Enact new, low-rate franchise tax based on property, payroll and sales
in New Mexico above high thresholds
20a. Raise $100 million/year and phase out CIT effective 1-1-10
20b. Raise $50 million/year, no change in CIT effective 1-1-10
20c. Raise $100 million/year and phase out CIT effective 1-1-11
20d. Raise $50 million/year, no change in CIT effective 1-1-11

Income Tax Withholding Overview


Option 21. Tighten rules for pass-through entity (PTE) and oil and gas proceeds
withholding on nonresidents, and require PTE quarterly payments

Estate Tax Overview


Option 22. Decouple Estate Tax from Federal Credit
22a. Effective 1-1-10
22b. Effective 1-1-11

Oil and Natural Gas Taxes


Option 23. Increase Emergency School Tax rate on oil from 3.15% to 4%
23a. Effective 1-1-10
23b. Effective 7-1-10
Option 23A. Reduce oil and gas severance tax rate .25% and increase oil and gas
emergency school tax rate .25%
23Aa. Effective 1-1-10
23Ab. Effective 7-1-10
Option 24. Add graduated rates based on benchmark oil and natural gas prices
24a. Effective 1-1-10
24b. Effective 7-1-10
Uranium and Coal Taxes
Option 25. Increase Tax Rates on Uranium to Match Rates on other Energy Resources
25a. Raise rate to effective rate on oil
25b. Raise rate to effective rate on natural gas
25c. Raise rate to effective rate on coal
Option 26. Repeal the Coal Surtax Exemption
26a. Effective 1-1-10
26b. Effective 7-1-10

Business Incentive Tax Credits


Option 27. Adopt uniform language that addresses the goal of the credit, the base
for the credit, performance standards, recapture, etc.
Option 28. Require additional reporting by credit recipients, making information
on recipient’s public, periodic reports on effectiveness in meeting goals

Tax Compliance and Administration Rules


Option 29. Provide TRD broad authority to reallocate receipts, income, deductions,
exemptions, and other items among entities to properly reflect tax liabilities and
credits
Option 30. Increase penalties for failure to file or pay liabilities and for
willful evasion
Option 31. Expand requirements for information reporting and special payment rules
Option 32. Require in-state contractors to post bonds
Option 33. Require State and local governments to collect and remit tax on
contracts
Option 34. Increase administrative fee to cover all distributions to local
governments

To develop these options, the Task Force referred to the 2003 Blue Ribbon Tax
Reform Commission, recent legislative proposals, listened to issues raised by the
Task Force members, public input and monitored proposals currently being suggested
by 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 all
meetings provided scheduled time for public input.

Date

Time

City

Location
November 16, 2009

1:00 p.m. – 5:00 p.m.

Santa Fe

Santa Fe Community College


Jemez Room
6401 S Richards Avenue
November 19, 2009

1:00 p.m. – 5:00 p.m.


Albuquerque

Expo New Mexico


Youth Hall
300 San Pedro Drive NE
December 1, 2009

1:00 p.m. – 5:00 p.m.

Las Cruces

Farm and Ranch Museum


Tortugas Room
4100 Dripping Springs Road
December 10, 2009

1:00 p.m. – 5:00 p.m.

Farmington

Civic Center
Theater
800 Municipal Drive
December 17, 2009

1:00 p.m. – 5:00 p.m.

Santa Fe

Santa Fe Community College


Jemez Room
6401 S Richards Avenue

Sincerely yours,

Rick Homans
Chairman
Budget Balancing Task Force

Budget Balancing Task Force Membership

Chair
Rick Homans, Cabinet Secretary, New Mexico Taxation and Revenue Department

Task Force Members


Carolyn Abeita, Regent, University of New Mexico
Steve Anaya, Executive Vice President, Realtors Association of New Mexico
Richard Anklam, President and Executive Director, New Mexico Tax Research
Institute
Odes Armijo-Caster, President, Renewable Energy Industries Association
Bob Barberousse, Cigar Association of America
Kathi Bearden, Former Publisher, Hobbs News-Sun
Jim Berry, President and Chief Executive Officer, Las Cruces Chamber of Commerce
Charles Bowyer, Executive Director, National Education Association
Carter Bundy, Legislative Director, American Federation of State and Municipal
Employees
Gayla Brumfield, Mayor, City of Clovis
Don Chalmers, Principal Dealer, Don Chalmers Ford
Rick Clemente, Production Central Albuquerque
Terri L. Cole, President and Chief Executive Officer, Greater Albuquerque Chamber
of Commerce
Caren Cowan, Executive Director, New Mexico Cattle Growers Association
Pat D’Arco, Chairman, Rio Rancho Planning & Zoning Board
Diane Denish, Lieutenant Governor, State of New Mexico
Bill Fulginiti, Executive Director, New Mexico Municipal League
Leo Garza, Legislative Committee Chair, AARP New Mexico
Jackson Gibson, Member, District 6, Transportation Commission
Leland Gould, Director of Government Affairs, Western Refining
Jami Grindatto, Corporate Affairs Director, Intel
Paul Gutierrez, Executive Director, New Mexico Association of Counties
Jim Hinton, President, Presbyterian Health Services
Ruth Hoffman, Director, Lutheran Advocacy Ministry - New Mexico
John Horton, Director, Public Policy and Government Relations, Associated General
Contractors
Bill Jordan, Policy Director, Voices for Children
Leanne Leith, Political and Programs Director, Conservation Voters New Mexico
Sharon Lombardi, Executive Director, Dairy Producers of New Mexico
Raymond Mondragon, Chair, New Mexico Economic Development Partnership
Bob Murphy, Executive Director, Economic Forum of Albuquerque
Fred Nathan, Executive Director, Think New Mexico
Fred O’Cheskey, Southwest Public Affairs, LLC
Earl Potter, Hotel Santa Fe and Five & Dime General Stores
Alex Romero, President and Chief Executive Officer, Albuquerque Hispano Chamber of
Commerce
Joshua Rosen, Chief of Staff, State of New Mexico, Office of Lt. Governor Diane
Denish
Allen Sanchez, President and Chief Executive Officer, St. Joseph Community Health
David S. Smoak, President, RSF Land and Cattle Co.
Mark Thompson, Lieutenant Governor, Acoma Pueblo
Tony Trujillo, Government Relations Director, Freeport McMoRan Copper and Gold
Thom Turbett, President and Chief Executive Officer, Independent Insurance Agents
of New Mexico
Jerry Walker, President and Chief Executive Officer, Independent Community Bankers
Association of New Mexico
Michelle Welby, Director, Medical Operations, Molina Healthcare of New Mexico
Chuck Wellborn, Wellborn Strategies, LLC
Carol Wight, Chief Executive Officer, New Mexico Restaurant Association

Governor Richardson’s Budget Balancing Task Force


Options with Revenue Estimates

Option

Estimated Revenue Impact (000)

Fund(s) Affected
Effective

FY10

FY11

FY12
FY13

FY14

FY10-14
Gross Receipts and Compensating Taxes
1. Increase rates
1a. Increase rates .25%
1b. Increase rates .5%
1c. Increase rates 1%

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

0
0
0

120,360
240,721
481,442

126,980
253,961
507,921

133,583
267,166
534,333

139,461
278,922
557,844

520,385
1,040,770
2,081,540

General Fund
General Fund
General Fund
2. Increase rates 1% with credit for local rates (no tax increase inside
municipalities)

7-1-10

117,000
113,000

119,000

124,000

463,000

General Fund
0

1,500

1,600

1,700

1,800

6,600

Counties
3. Make compensating tax apply to sales in New Mexico

7-1-10

11,600

12,200

12,900

13,500

50,200

General Fund
0

2,500

2,700

2,800

3,000

11,000

Municipalities
0

1,600

1,700
1,800

1,800

6,900

Counties
0

15,700

16,600

17,500

18,300

68,100

Total
4. Make New Mexico purchaser’s location the place of business for out-of-
state sellers with no NM place of business or without nexus in NM and apply local
option rates for compensating tax

7-1-10

(16,000)

(17,000)

(18,000)

(19,000)

(70,000)

General Fund
0

68,000

71,000

75,000

77,000

292,000

Municipalities
0

23,000

24,000
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

228,000

239,000

250,000

262,000

979,000

General Fund
0

Municipalities
0
0

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

7-1-10

68,000

71,000

76,000

79,000

294,0000

General Fund
0

Municipalities
0

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

7-1-10
0

104,000

109,000

115,000

120,000

448,000

General Fund

(36,000)

(38,000)

(40,000)

(42,000)

(155,000)

Municipalities
0

Counties
5d. Exclude candy and soft drinks from the definition of “food” for purposes of
the deduction

7-1-10

0
18,000

19,000

20,000

21,000

78,000

General Fund

6. Expand LICTR and low- and middle-income exemption to mitigate effect of


changes in tax treatment of food or other changes to the gross receipts tax or
excises

1-1-10

(21,378)

(21,749)

(22,126)

(22,509)

(87,762)

General Fund
7. Include motor fuels in gross receipts tax base:

7a. GRT on gasoline

7-1-10

98,700

98,700

98,700
98,700

394,800

General Fund
0

49,450

49,450

49,450

49,450

197,800

Municipalities
0

16,350

16,350

16,350

16,350

65,400

Counties
0

11,200

11,200

11,200

11,200

44,800

Pueblos/Tribes
0

175,700

175,700

175,700

175,700

702,800

Total
7b. 5% special fuel (diesel)

7-1-10

68,750

68,750

68,750

68,750

275,000

General Fund
7c. Combine 7a and 7b

7-1-10

167,450

167,450

167,450

167,450

669,800

General Fund
8. Repeal gross receipts tax exemption for receipts of insurance companies
not subject to insurance premium tax

7-1-10

6,135

6,748

7,423

8,165

28,471

General Fund
0

4,420

4,862
5,348

5,883

20,513

Municipalities
0

939

1,033

1,137

1,250

4,359

Counties
0

11,494

12,643

13,908

15,298

53,343

Total
Motor Vehicle Excise
9. Increase rate
9a. Increase rate 1%
9b. Increase rate 2%
9c. Increase rate 3%
9d. Increase rate to average GRT rate

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

0
0
0
0

34,300
68,700
103,000
140,800
37,700
75,300
113,000
154,400

39,000
78,000
117,000
159,900

40,700
81,300
122,000
166,700

151,700
303,300
455,000
621,800

General Fund
General Fund
General Fund
General Fund
Insurance Premium Tax
10. Increase rate on health insurance premiums
10a. Increase rate 1%
10b. Increase rate 2%
10c. Increase rate 3%
10d. Increase rate to average GRT rate

1-1-11
1-1-11
1-1-11
1-1-11

0
0
0
0

19,200
38,400
57,600
59,500

42,300
84,600
126,900
131,100

46,500
93,000
139,500
144,100

51,200
102,400
153,600
158,700

159,200
318,400
477,600
493,400

General Fund
General Fund
General Fund
General Fund
Tobacco Taxes
11. Increase rate and adjust distributions and stamp discounts
11a. Increase rate $.50/pack
11b. Increase rate $1.00/pack

7-1-10

7-1-10

20,474

33,145

20,474

33,145
20,474

33,145

20,474

33,145

81,896

132,580

General Fund

General Fund
12. Increase Tobacco Products Tax
12a. Increase rate to 40%
12b. Rate equal to tobacco excise rate (with $.50 increase) + MSA rate on basis
of tobacco content
12c. Rate equal to tobacco excise rate (with $1.00 increase) + MSA rate on basis
of tobacco content

7-1-10
7-1-10

7-1-10

0
0

3,050
6,550
7,700

3,150
6,750

7,900

3,300
7,000

8,300

3,400
7,200

8,500

12,900
27,500

32,400

General Fund
General Fund

General Fund
13. Repeal tax-exempt stamp provisions and make distributions to new Tribal Fund
for allocation to Nations, tribes and pueblos

13a. Repeal tax-exempt under current tax rate

7-1-10

0
4,900

4,950

5,000

5,050

19,900

Tribal Fund
0

23,300

23,250

23,200

23,150

92,900

General Fund
13b. Repeal tax-exempt with $0.50 rate increase

7-1-10

7,600

7,670

7,740

7,800

30,810

Tribal Fund
0

39,900

39,830

39,760

39,700

159,100

General Fund
13c. Repeal tax-exempt with $1.00 rate increase
7-1-10

10,300

10,400

10,500

10,600

41,800

Tribal Fund
0

59,300

59,200

59,100

59,000

263,600

General Fund
13d. Keep $0.91 differential with $0.50 rate increase

7-1-10

2,700

2,725

2,750

2,775

10,950

Tribal Fund
0

18,200

18,175

18,150

18,125

72,650

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

7-1-10

5,400

5,450

5,500

5,550

21,900

Tribal Fund
0

39,050

39,000

38,950

38,900

155,900

General Fund
Liquor Excise Tax
14. Apply uniform rate to spirits, wine and beer based on alcohol content
14a. Single rate on alcohol content of each product
14b. Rates on spirits, wine and beer that are equal based on average alcohol
content
14c Rates equivalent to $0.10 per drink

7-1-10

7-1-10

7-1-10

0
18,000

17,880

42,600

18,100

18,000

43,100

18,200

18,100

43,500

18,300

18,200

44,100

72,600

72,180

130,700
General Fund

General Fund

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
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
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
201,380

149,753

102,325

General Fund

General Fund

General Fund

General Fund

General Fund

General Fund

General Fund

General Fund
16. Reduce capital gains deduction
16a. 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)

1-1-10

1-1-10

1-1-11

1-1-11

12,077

8,020
0

28,453

19,109

16,400

11,105

37,378

25,506

36,609

24,996

45,304

31,177

45,304

31,177

52,178

36,548

52,178

36,548
175,120

120,360

150,221

103,826

General Fund

General Fund

General Fund

General Fund
17. Repeal itemized deduction for state and local taxes (adjusted pro rata for
the limitation on itemized deductions)
17a. Effective 1-1-10
17b. Effective 1-1-11

1-1-10
1-1-11

3,600
0

65,400
23,200
47,300
47,300

50,900
50,900

53,500
53,500

395,592
395,592

General Fund
General Fund
18. Simplify PIT

1-1-10

1,551

1,698

1,516

1,689

6,454

General Fund
Corporate Income Tax (CIT)
19. Mandate combined reporting

1-1-11

0
5,700

32,200

18,900

7,600

64,500

General Fund
19A. Decouple from federal bonus depreciation, domestic production activities
deduction and CODI effective 1-1-10

1-1-10

2,500

8,300

11,300

11,800

12,000

45,900

General Fund
20. Enact new, low-rate franchise tax based on property, payroll and sales in New
Mexico above high thresholds
20a. Raise $100 million/year and phase out CIT
20b. Raise $50 million/year, no change in CIT
20c. Raise $100 million/year and phase out CIT
20d. Raise $50 million/year, no change in CIT

1-1-10

1-1-10

1-1-11

1-1-11
40,000

20,000

100,000

50,000

40,000

20,000

100,000

50,000

100,000

50,000

100,000

50,000

100,000

50,000
100,000

50,000

100,000

50,000

440,000

220,000

340,000

170,000

General Fund

General Fund

General Fund

General Fund
Income Tax Withholding
21. Tighten rules for pass-through entity (PTE) and oil and gas proceeds
withholding on nonresidents, and require PTE quarterly payments

1-1-11

15,600
9,800

10,100

10,500

46,000

General Fund
Estate Tax
22. Decouple estate tax from federal credit (using IRC section 2011 rate
structure)
22a. Effective 1-1-10
22b. Effective 1-1-11

1-1-10
1-1-11

0
0

31,600
0

44,000
33,000

45,800
45,800

47,800
47,800

297,813
297,813
General Fund
General Fund
Oil and Gas Taxes
23. Increase Emergency School Tax rate on oil from 3.15% to 4%
23a. Effective 1-1-10
23b. Effective 7-1-10

1-1-10
7-1-10

16,767
0

35,091
35,091

36,326
36,326

37,467
37,467

38,609
38,609

164,260
147,493

General Fund
General Fund
23A. Reduce oil and gas severance tax rate .25% and increase oil and gas
emergency school tax rate .25%
23Aa. Effective 1-1-10
23Ab. Effective 7-1-10

1-1-10

7-1-10

10,550
(10,550)

0
0

23,300
(23,300)

23,300
(23,300)
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 Fund
STBF

General Fund
STBF
24. Add graduated rates based on benchmark oil and natural gas prices
24a. Effective 1-1-10
24b. Effective 7-1-10

1-1-10
7-1-10

49,691
0

119,478
119,478

122,854
122,854
126,081
126,081

128,734
128,734

546,838
497,147

General Fund
General Fund
Uranium and Coal Taxes
25. Increase rates on uranium to levels comparable to rates on other energy
resources
25a. Raise rate to effective rate on oil
25b. Raise rate to effective rate on natural gas
25c. Raise rate to effective rate on coal

7-1-10

7-1-10

7-1-10

1,886

1,896

1,406

These are hypothetical amounts based on 1 million pounds of U3O8 production at the
current price of $49.50 per pound.
General Fund

General Fund

General Fund
26. Repeal coal surtax exemption
26a. Effective 1-1-10

26b. Effective 7-1-10

1-1-10

7-1-10

6,280

23,219

23,219

22,058

22,058

20,955

20,955

19,908

19,908

92,420

86,140
STBF

STBF
Business Incentive Credits
27. Adopt uniform language that addresses the goal of the credit, the base for
the credit, performance standards, recapture, etc.

1-1-11

No direct revenue effect.


28. Require additional reporting by credit recipients, making information on
recipients public, periodic reports on effectiveness in meeting goals

1-1-11

No direct revenue effect.


Tax Compliance
29. Provide TRD broad authority to reallocate receipts, income, deductions,
exemptions, and other items among entities to properly reflect tax liabilities and
credits

7-1-10

250

500

750

800

2,300

General Fund
0

50

100

150

160

460

Municipalities
0

15

30

45

45
135

Counties
0

315

630

945

1,045

2,895

Total
30. Increase penalties for failure to file or pay liabilities and for willful
evasion

7-1-10

500

500

500

500

2,000

General Fund
31. Expand requirements for information reporting and special payment rules

7-1-10

450

360

360

120

1,290

General Fund
0

225

180
180

60

645

Municipalities
0

75

60

60

20

215

Counties
0

1,880

2,360

2,990

2,750

9,940

Total
32. Require in-state contractors to post bonds

7-1-10

10,763

11,355

11,946

12,471

46,535

General Fund
0

4,443

4,688

4,932
5,149

19,212

Municipalities
0

1,545

1,630

1,714

1,790

6,679

Counties
0

16,751

17,673

18,592

19,410

72,426

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

7-1-10

3,051

2,384

2,508

2,618

10,562

General Fund
0

1,573

1,229

1,293

1,350
5,446

Municipalities
0

547

427

450

469

1,893

Counties
0

5,172

4,041

4,251

4,438

17,901

Total
34. Increase administrative fee to cover all distributions to local governments

7-1-10

(5,204)

(5,479)

(5,757)

(6,017)

(22,457)

Municipalities
0

5,142

5,422

5,702

5,955

22,221
Counties
0

(11)

(16)

(22)

(31)

(80)

TIDDs
0

73

77

81

85

316

Pueblos
0

(8)

Total (General Fund)