Tax-code cleanup bill advances after removing tribal film-credit expansion and adopting rounding, interception fixes
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Summary
House Bill 291, the annual tax-code cleanup bill, passed the committee twice amended after lawmakers adopted technical fixes including rounding rules for cash remittances, the ability to intercept delinquent property auction proceeds to pay state tax debts, and removal of a proposed expansion to allow certain tribal land film expenditures to qualify for the refundable film tax credit.
A House committee advanced House Bill 291 after adopting two amendments that reshape portions of the tax-code cleanup measure, including removing a proposed expansion of the refundable film tax credit to certain tribal land expenditures.
The sponsor introduced the bill and the committee adopted Amendment 1 (retaining New Mexico's independent definition of qualified research). Taxation and Revenue Secretary Stephanie Chardonn Clarke summarized a package of technical fixes proposed in the bill: rounding amounts remitted to the department to the nearest nickel for cash payments to the agency or county treasurer (not a transaction-level rounding for retail electronic payments); waiving interest when the secretary extends tax filing deadlines for "good cause" such as natural disasters; clarifying the film-tax-credit application timing and partner rules; and allowing TRD to intercept excess delinquent property auction proceeds to repay other delinquent state tax debts.
Public commenters raised objections: Larry Sonntag of the New Mexico Business Coalition opposed HB291, saying it expanded taxes and enforcement on retailers and vaping products and could divert auction proceeds away from taxpayers; Dylan Waites of the Council on State Taxation asked for clarification about rounding mechanics and urged limiting rounding to cash transactions. Secretary Chardonn Clarke and department staff answered technical questions: they said the rounding in the bill applies when taxpayers remit an amount to the department or a county treasurer and is not intended to change electronic transaction calculations, and they explained that the $25 million annual cap for the advanced-energy credit is certified by MNRD and that certification (not TRD claims) controls annual availability.
On the film-credit tribal expansion, department staff said the Legislative Finance Committee scored the proposed expansion as having a negative fiscal impact; sponsors and the secretary said they supported the policy intent but agreed the provision did not belong in this cleanup bill. The amendment removing that language passed on roll-call 9 yes, 1 no. The committee gave HB291 a do-pass twice amended and sent it on with the adopted technical changes.
