HB 6 — TAX CHANGES

gHTRC/HB o6/a Page 4 (11) any advance payment required to be made t hr g e i k by any act specified in this subsection, which advance payment h r i s shall be considered a tax for the purposes of the Tax h , t, Administration Act;

e u g e b l (12) Enhanced Oil Recovery Act;

e e h n d d i = = o h (13) Natural Gas and Crude Oil Production l ] b ,d i a º e Incentive Act;

and r i = r t e w d (14) intergovernmental production tax credit mand aintergovernmental nproduction oequipment dtax mcredit; :

b e d s º o t n = .213724.9 s k m e - 5 - e a n e d r e l u [ A d HTRC/HB 6 and intergovernmental production equipment tax credit;

(6) the water conservation fee imposed by h Section 74-1-13 NMSA 1978, which fee shall be considered a taxHTRC/HB g6/a oPage 5 tax for the purposes of the Tax Administration Act;

and t hr g e i k (7) the gaming tax imposed pursuant to the h r i s Gaming Control Act;

and h , t, D.

the administration and enforcement of all other e u g e b l e e h laws, with respect to which the department is charged with n d d i = = o h responsibilities pursuant to the Tax Administration Act, but l ] b ,d i a º e only to the extent that the other laws do not conflict with the r i = r t e w d Tax Administration Act." mSECTION a2. n o d m :

b e d s º o t n = .213724.9 s k m e - 6 - e a n e d r e l u [ A d SECTION 2.

[B.] C.

"department" means the taxation and revenue department, the secretary or any employee of the department HTRC/HB 6/a Page 6 exercising authority lawfully delegated to that employee by the secretary;

hD. [C.

]"electronic D.payment" means a payment made by automated clearinghouse deposit, any funds wire transfer system or a credit card, debit card or electronic cash transaction through the internet;

"electronicE. payment" means a payment made g o by automated clearinghouse deposit, any funds wire transfer t hr g e i k system or a credit card, debit card or electronic cash h r i s transaction through the internet;

h"employee ,of t,the [D.department" means any employee of the department, including the secretary, or any person acting as agent or authorized to represent or perform services for the department in any capacity with respect to any law made subject to administration and enforcement under the provisions of the Tax Administration Act;

]F. E.

"employee of the department" means any e u g e b l employee of the department, including the secretary, or any e e h n d d i = = o h person acting as agent or authorized to represent or perform l ] b ,d i a º e services for the department in any capacity with respect to any r i = r t e w d law made subject to administration and enforcement under the m a n o d m :

b e d s º o t n = .213724.9 s k m e - 7 - e a n e d r e l u [ A d HTRC/HB 6 provisions of the Tax Administration Act;

[E.

] F.

[F.G.

] G.

[G.H.

]"Internal H.Revenue Code" means the Internal Revenue Code of 1986, as that code may be amended or its HTRC/HB 6/a Page 7 sections renumbered;

"InternalI. Revenue Code" means the Internal Revenue Code of 1986, as that code may be amended or its sections renumbered;

[H."levy" means the lawful power, hereby invested in the secretary, to take into possession or to require the present or future surrender to the secretary or the secretary's delegate of any property or rights to property belonging to a delinquent taxpayer;

]J. I.

"levy""local meansoption thegross lawfulreceipts power,tax" herebymeans investeda intax theauthorized secretary, to takebe intoimposed possessionby a county or tomunicipality hupon requirea thetaxpayer's presentgross orreceipts, futureas surrenderthat toterm theis secretarydefined orin the gGross oReceipts secretary'sand delegateCompensating ofTax anyAct, propertyand orrequired rights to propertybe tcollected hrby gthe edepartment iat kthe belongingsame totime aand delinquentin taxpayer;the same manner as the gross receipts tax;

hK. r i s [I.

] J.

"local option gross receipts tax" means a h , t, tax authorized to be imposed by a county or municipality upon e u g e b l e e h [the] a taxpayer's gross receipts, as that term is defined in n d d i = = o h the Gross Receipts and Compensating Tax Act, and required to be l ] b ,d i a º e collected by the department at the same time and in the same r i = r t e w d manner as the gross receipts tax;

["local option gross receipts m a n o d m :

b e d s º o t n = .213724.9 s k m e - 8 - e a n e d r e l u [ A d tax" includes the taxes imposed pursuant to the Municipal Local Option Gross Receipts Taxes Act, Supplemental Municipal Gross Receipts Tax Act, County Local Option Gross Receipts Taxes Act, Local Hospital Gross Receipts Tax Act and County Correctional Facility Gross Receipts Tax Act and such other acts as may be enacted authorizing counties or municipalities to impose taxes on gross receipts, which taxes are to be collected by the department in the same time and in the same manner as it collects the gross receipts tax;

J.] K.

[K.L.

] L.

hM. [L.

]"overpayment" M.means an amount paid, pursuant to any law subject to administration and enforcement under the provisions of the Tax Administration Act, by a person to the HTRC/HB 6/a Page 8 department or withheld from the person in excess of tax due from the person to the state at the time of the payment or at the time the amount withheld is credited against tax due;

"overpayment"N. means an amount paid, g o pursuant to any law subject to administration and enforcement t hr g e i k under the provisions of the Tax Administration Act, by a person h r i s to the department or withheld from the person in excess of tax h , t, due from the person to the state at the time of the payment or e u g e b l at the time the amount withheld is credited against tax due;

e e h n d d i = = o h [M.

] N.

lO. ] b ,d i a º e [N.

] O.

rP. i = r t e w d [O.

] P.

mQ. a n o d m :

b e d s º o t n = .213724.9 s k m e - 9 - e a n e d r e l u [ A d HTRC/HB 6 [P.] Q.

[Q.] R.

[R.] S.

"property or rights to property" means any h tangible property, real or personal, or any intangible property g o of a taxpayer;

t hr g e i k [S.] T.

"return" means any tax or information hreturn, rHTRC/HB i6/a sPage return,9 application or form, declaration of estimated tax or h , t, claim for refund, including any amendments or supplements to e u g e b l e e h the return, required or permitted pursuant to a law subject to n d d i = = o h administration and enforcement pursuant to the Tax l ] b ,d i a º e Administration Act and filed with the secretary or the r i = r t e w d secretary's delegate by or on behalf of any person;

mU. a n o d m :

b e d s º o t n = .213724.9 s k m e - 10 - e a n e d r e l u [ A d [T.] U.

[U.V.

]"secretary" V.means the secretary of taxation and revenue and, except for purposes of Subsection B of Section 7-1-4 NMSA 1978, also includes the deputy secretary or a HTRC/HB 6/a Page 10 division director or deputy division director delegated by the secretary;

"secretary"W. means the secretary of taxation and revenue and, except for purposes of Subsection B of Section 7-1-4 NMSA 1978, also includes the deputy secretary or a division director or deputy division director delegated by the h secretary;

g"secretary oor [V.the secretary's delegate" means the secretary or any employee of the department exercising authority lawfully delegated to that employee by the secretary;

]X. W.

"secretary"security" or the secretary's delegate" t hr g e i k means themoney, secretaryproperty or anyrights employee of the department h r i s exercising authority lawfully delegated to thatproperty employeeor bya thesurety hbond; , t, secretary;

eY. u g e b l [W.

]"state" X.means any state of the United States, the District of Columbia, the commonwealth of Puerto Rico and any territory or possession of the United States;

"security"Z. means money, property or rights e e h n d d i = = o h to property or a surety bond;

l ] b ,d i a º e [X.

] Y.

"state" means any state of the United r i = r t e w d States, the District of Columbia, the commonwealth of Puerto m a n o d m :

b e d s º o t n = .213724.9 s k m e - 11 - e a n e d r e l u [ A d HTRC/HB 6 Rico and any territory or possession of the United States;

[Y.] Z.

[Z.] AA.

"tax return preparer" means a person who prepares for others for compensation or who employs one or HTRC/HB 6/a Page 11 more persons to prepare for others for compensation any return of h income tax, a substantial portion of any return of income tax, u » r any claim for refund with respect to income tax or a t h g e substantial portion of any claim for refund with respect to l i h r i s income tax;

provided that a person shall not be a "tax return h , e h preparer" merely because such person:

t u g e b l (1) furnishes typing, reproducing or other e e , gh n d d i = = o h mechanical assistance;

l ] b ,d i a º r (2) is an employee who prepares an income tax e r = t e w d return or claim for refund with respect to an income tax return mof athe nemployer, oor dof man :officer or employee of the employer, by whom the person is regularly and continuously employed;

b r e t º o t n = .213724.9 s k m e - 12 - e a n e d r e l u [ A d of the employer, or of an officer or employee of the employer, by whom the person is regularly and continuously employed;

and [AA.BB.

] BB.

or a person who entered into a special agreement pursuant to Section 7-1-21.1 NMSA 1978 to assume the liability of gross receipts tax or governmental gross receipts tax of another person and the special agreement was approved by the secretary pursuant to HTRC/HB 6/a Page 12 the Tax Administration Act." SECTION 3.

DISTRIBUTION--MUNICIPALITY FROM GROSS RECEIPTS TAX.-- h A.

Except as provided in Subsection B of this g o section, a distribution pursuant to Section 7-1-6.1 NMSA 1978 t hr g e i k shall be made to each municipality in an amount, subject to any h r i s increase or decrease made pursuant to Section 7-1-6.15 NMSA h , t, 1978, equal to the product of the quotient of one and two e u g e b l hundred twenty-five thousandths percent divided by the tax rate e e h n d d i = = o h imposed by Section 7-9-4 NMSA 1978 multiplied by the net l ] b ,d i a º e receipts, except net receipts attributable to a rnonprofit i = r t e w d Hflºnonprofit»Hfl hospital licensed by the department of mhealth, afor nthe omonth dattributable mto :the gross receipts tax from business locations:

b e d s º o t n = .213724.9 s k m e - 13 - e a n e d r e l u [ A d HTRC/HB 6 health , for the month attributable to the gross receipts tax from business locations:

and (4) on an Indian reservation or pueblo grant in an area that is contiguous to that municipality and in which the municipality performs services pursuant to a HTRC/HB 6/a Page 13 contract between the municipality and the Indian tribe or Indian pueblo if:

(a) the contract describes an area in which the municipality is required to perform services and requires the municipality to perform services that are h substantially the same as the services the municipality g o performs for itself;

and t hr g e i k (b) the governing body of the h r i s municipality has submitted a copy of the contract to the h , t, secretary.

e u g e b l e e h B.

If the reduction made by Laws 1991, Chapter 9, n d d i = = o h Section 9 to the distribution under this section impairs the l ] b ,d i a º e ability of a municipality to meet its principal or interest r i = r t e w d payment obligations for revenue bonds outstanding prior to July m a n o d m :

b e d s º o t n = .213724.9 s k m e - 14 - e a n e d r e l u [ A d 1, 1991 that are secured by the pledge of all or part of the municipality's revenue from the distribution made under this section, then the amount distributed pursuant to this section to that municipality shall be increased by an amount sufficient to meet any required payment, provided that the distribution amount does not exceed the amount that would have been due that municipality under this section as it was in effect on June 30, 1992.

C.

A distribution pursuant to this section may be adjusted for a distribution made to a tax increment development district with respect to a portion of a gross receipts tax increment dedicated by a municipality pursuant to the Tax Increment for Development Act.

Hflº "»Hfl Hflº D.

As used in this section, "nonprofit hospital" means a hospital that has been granted exemption from federal income tax by the United States commissioner of internal revenue as an organization described in Section 501(c)(3) of the Internal Revenue Code."»Hfl SECTION 4.

Section 7-1-6.11 NMSA 1978 (being Laws 1983, h Chapter 211, Section 16, as amended by Laws 2017, Chapter 34, g o Section 2 and by Laws 2017, Chapter 63, Section 9) is amended t hr g e i k to read:

h r i s "7-1-6.11.

DISTRIBUTIONS OF CIGARETTE TAXES.-- h , t, A.

A distribution pursuant to Section 7-1-6.1 NMSA e u g e b l e e h 1978 shall be made to the comprehensive cancer center at the n d d i = = o h university of New Mexico health sciences center in an amount l ] b ,d i a º e equal to [eighty-three ] seventy-one hundredths percent of the r i = r t e w d m a n o net receipts, exclusive of penalties and interest, attributable d m :

b e d s º o t n = .213724.9 s k m e - 15 - e a n e d r e l u [ A d HTRC/HB 6 to the cigarette tax.

AIf the reduction made by Laws 1991, Chapter 9, Section 9 to the distribution pursuantunder this section impairs the ability of a municipality to Sectionmeet 7-1-6.1its NMSAprincipal inor aninterest amountpayment equalobligations for revenue bonds outstanding prior to [eightJuly and1, eighty-nine1991 ]that sevenare andsecured fifty-twoby hundredthsthe percentpledge of all or part of the netmunicipality's receipts,revenue exclusivefrom ofthe penaltiesdistribution andmade interest,under attributablethis tosection, then the cigaretteamount tax,distributed pursuant to this section to that municipality shall be made,increased onby behalfan ofamount andsufficient forto meet any required payment, provided that the benefitdistribution ofamount does not exceed the universityamount ofthat Newwould Mexicohave healthbeen sciencesdue center,that tomunicipality theunder Newthis Mexicosection financeas authority.it was in effect on June 30, 1992.

A distribution pursuant to Sectionthis 7-1-6.1section NMSAmay inbe anadjusted amountfor equala todistribution threemade andto [seventy-foura ]tax seventeenincrement hundredthsdevelopment percentdistrict ofwith therespect netto receipts,a exclusiveportion of penaltiesa andgross interest,HTRC/HB attributable6/a toPage the14 cigarettereceipts tax shallincrement bededicated madeby toa themunicipality Newpursuant Mexicoto finance authority for land acquisition and the planning,Tax designing,Increment constructionfor andDevelopment equippingAct. of department of health facilities or improvements to such facilities.

h D.

AAs distributionused pursuant to Section 7-1-6.1 NMSA g o 1978 in anthis amountsection, equal"nonprofit tohospital" [ninemeans anda seventy-sevenhospital ]that eighthas andbeen tgranted hrexemption gfrom efederal iincome ktax twenty-sixby hundredths percent of the netUnited receipts,States exclusivecommissioner of hinternal rrevenue ias san penaltiesorganization anddescribed interest,in attributableSection to501(c)(3) theof cigarette tax shall h , t, be made to the NewInternal MexicoRevenue financeCode." authoritySECTION for4. deposit in the e u g e b l e e h credit enhancement account created in the authority.

nSection d7-1-6.11 dNMSA i1978 =(being =Laws o1983, hChapter E.211, Section 16, as amended by Laws 2017, Chapter 34, Section 2 and by Laws 2017, Chapter 63, Section 9) is amended to read:

A"7-1-6.11. distribution pursuant to Section 7-1-6.1 NMSA l ] b ,d i a º e 1978 in an amount equal to [sixty-two ] fifty-three hundredths r i = r t e w d percent of the net receipts, exclusive of penalties and m a n o d m :

bDISTRIBUTIONS eOF dCIGARETTE sTAXES.-- ºA. o t n = .213724.9 s k m e - 16 - e a n e d r e l u [ A d interest, attributable to the cigarette tax shall be made, on behalf of and for the benefit of the rural county cancer treatment fund, to the New Mexico finance authority." SECTION 5.

A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the comprehensive cancer center at the university of New Mexico health sciences center in an amount equal to seventy-one hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax.

B.

A distribution pursuant to Section 7-1-6.1 NMSA in an amount equal to seven and fifty-two hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax, shall be made, on behalf of and for the benefit of the university of New Mexico health sciences center, to the New Mexico finance authority.

HTRC/HB 6/a Page 15 C.

A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to three and seventeen hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax shall be made to the New Mexico finance authority for land acquisition and the planning, designing, construction and equipping of department of health facilities or improvements to such facilities.

D.

A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to eight and twenty-six hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax shall be made to the New Mexico finance authority for deposit in the credit enhancement account created in the authority.

E.

A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to fifty-three hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax shall be made, on behalf of and for the benefit of the rural county cancer treatment fund, to the New Mexico finance authority." SECTION 5.

A transfer pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each municipality for which the HTRC/HB 6/a Page 16 department is collecting a local option gross receipts tax and municipal compensating tax imposed by that municipality in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the net receipts attributable to the local option gross receipts tax and municipal compensating tax imposed by that municipality, less any deduction for administrative cost determined and made by the department pursuant to the provisions of the act authorizing imposition by that municipality of the local option gross receipts tax and municipal compensating tax and any additional administrative h fee withheld pursuant to [Subsection C of ] Section 7-1-6.41 g o NMSA 1978.

t hr g e i k B.

A transfer pursuant to this section may be h r i s adjusted for a distribution made to a tax increment development h , t, district with respect to a portion of a gross receipts tax e u g e b l increment dedicated by a municipality pursuant to the Tax e e h n d d i = = o h Increment for Development Act." l ] b ,d i a º e SECTION 6.

Section 7-1-6.13 NMSA 1978 (being Laws 1983, r i = r t e w d Chapter 211, Section 18, as amended) is amended to read:

m"7-1-6.13. a n o d m :

b e d s º o t n = .213724.9 s k m e - 17 - e a n e d r e l u [ A d HTRC/HB 6 "7-1-6.13.

Except as provided in Subsection B of this section, a transfer pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each county for which the department is collecting a local option gross receipts tax and county HTRC/HB 6/a Page 17 compensating tax imposed by that county in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the net receipts attributable to the local option gross receipts tax and county compensating tax imposed by that county, less any deduction for administrative cost determined and made by the department pursuant to the provisions of the act authorizing imposition by that county of the local option gross receipts tax and county compensating tax and any additional administrative fee withheld pursuant to [Subsection C of] Section 7-1-6.41 NMSA 1978.

h B.

A transfer pursuant to this section may be g o adjusted for a distribution made to a tax increment development t hr g e i k district with respect to a portion of a gross receipts tax h r i s increment dedicated by a county pursuant to the Tax Increment h , t, for Development Act." e u g e b l e e h SECTION 7.

Section 7-1-6.15 NMSA 1978 (being Laws 1983, n d d i = = o h Chapter 211, Section 20, as amended by Laws 2015, Chapter 89, l ] b ,d i a º e Section 1 and by Laws 2015, Chapter 100, Section 1) is amended r i = r t e w d m a n o to read:

d"7-1-6.15. m :

b e d s º o t n = .213724.9 s k m e - 18 - e a n e d r e l u [ A d "7-1-6.15.

(2) any transfer to a municipality with HTRC/HB 6/a Page 18 respect to any local option gross receipts tax or municipal compensating tax imposed by that municipality;

(7) any distribution to a county from the h county government road fund pursuant to Section 7-1-6.26 NMSA g o 1978;

t hr g e i k (8) any distribution to a municipality of h r i s gasoline taxes pursuant to Section 7-1-6.27 NMSA 1978;

and h , t, (9) any distribution to a municipality of e u g e b l compensating taxes pursuant to Section 7-1-6.55 NMSA 1978.

e e h n d d i = = o h B.

Before making a distribution or transfer l ] b ,d i a º e specified in Subsection A of this section to a municipality or r i = r t e w d county for the month, amounts comprising the net receipts shall mbe asegregated ninto otwo dmutually mexclusive :categories.

bOne ecategory dshall sbe ºfor oamounts trelating nto =the .213724.9current sHTRC/HB k6/a mPage e - 19 -month, eand athe nother ecategory dshall r e l u [ A d HTRC/HB 6 be segregatedfor intoamounts tworelating mutuallyto exclusiveprior categories.periods.

One category shall be for amounts relating to the current month, and the other category shall be for amounts relating to prior periods.

(1) all negative amounts relating to any period prior to the three calendar years preceding the year of the current month, net of any positive amounts in that same time period for the same taxpayers to which the negative amounts pertain, shall be excluded from the total relating to h prior periods.

Except as provided in Paragraph (2) of this u » r subsection, the net receipts to be distributed or transferred t h g e to the municipality or county shall be adjusted to equal the l i h r i s amount for the current month plus the revised total for prior h , e h periods;

and t u g e b l (2) if the revised total for prior periods edetermined epursuant ,to ghParagraph n(1) dof dthis isubsection =is =negative oand hits determinedabsolute pursuantvalue toexceeds Paragraphthe (1)greater of thisone subsectionhundred isdollars l($100) ]or ban ,damount iequal ato ºtwenty rpercent negativeof andthe itsaverage absolutedistribution valueor exceedstransfer amount for that municipality or county, the greaterrevised oftotal onefor eprior rperiods =HTRC/HB t6/a ePage w20 dshall hundredbe dollarsexcluded ($100)from the distribution or antransfers amountand equalthe net receipts to twentybe percentdistributed ofor mtransferred ato nthe omunicipality dor mcounty :shall be equal to the amount for the current month.

b r e t º o t n = .213724.9 s k m e - 20 - e a n e d r e l u [ A d the average distribution or transfer amount for that municipality or county, the revised total for prior periods shall be excluded from the distribution or transfers and the net receipts to be distributed or transferred to the municipality or county shall be equal to the amount for the current month.

(1) that the department has made such an adjustment, that the department has determined that a specified amount is recoverable from the municipality or county and that the department intends to recover that amount from future h distributions or transfers to the municipality or county;

g o (2) that the municipality or county has ninety t hr g e i k days from the date notice is made to enter into a mutually h r i s agreeable repayment agreement with the department;

h , t, (3) that if the municipality or county takes e u g e b l no action within the ninety-day period, the department will e e h n d d i = = o h recover the amount from the next six distributions or transfersHTRC/HB l6/a ]Page b21 ,dtransfers i a º e following the expiration of the ninety days;

and r(4) ithat =the rmunicipality tor ecounty wmay dinspect, (4)pursuant to Section 7-1-8.9 NMSA 1978, an application for a claim for refund that gave rise to the municipalityrecoverable oramount, countyexclusive mayof many aamended nreturns othat dmay mbe :attached to the application.

b e d s º o t n = .213724.9 s k m e - 21 - e a n e d r e l u [ A d HTRC/HB 6 inspect, pursuant to Section 7-1-8.9 NMSA 1978, an application for a claim for refund that gave rise to the recoverable amount, exclusive of any amended returns that may be attached to the application.

or (b) except as provided in Paragraphs (2) and (3) of this subsection, if the municipality or county fails h to act within the ninety days, decreasing the amount of the u » r next six distributions or transfers to the municipality or t h g e county following expiration of the ninety-day period in l i h r i s increments as nearly equal as practicable and sufficient to h , e h recover the amount;

t u g e b l (2) if, pursuant to Subsection B of this e e , gh n d d i = = o h section, the secretary determines that the recoverable amount lHTRC/HB ]6/a bPage ,d22 i a º r is more than fifty percent of the average distribution or e r = t e w d transfer of net receipts for that municipality or county, the msecretary: a n o d m :

b r e t º o t n = .213724.9 s k m e - 22 - e a n e d r e l u [ A d secretary:

No later than ninety days from the date notice pursuant to Subsection D of this section is given, the h department shall provide the municipality or county adequate u » r opportunity to review an application for a claim for refund t h g e that gave rise to the recoverable amount, exclusive of any lHTRC/HB i6/a hPage r23 i s amended returns that may be attached to the application, h , e h pursuant to Section 7-1-8.9 NMSA 1978.

t u g e b l G.

On or before September 1 of each year beginning e e , gh n d d i = = o h in 2016, the secretary shall report to the state board of l ] b ,d i a º r finance and the legislative finance committee the total e r = t e w d recoverable amount waived pursuant to Subparagraph (b) of mParagraph a(2) nand oParagraph d(3) mof :Subsection E of this section for each municipality and county in the prior fiscal year.

b r e t º o t n = .213724.9 s k m e - 23 - e a n e d r e l u [ A d HTRC/HB 6 Paragraph (2) and Paragraph (3) of Subsection E of this section for each municipality and county in the prior fiscal year.

Upon direction to decrease a distribution or transfer or notice to redirect a distribution or transfer to a municipality or county, the secretary shall decrease or redirect the next designated distribution or transfer, and succeeding distributions or transfers as necessary, by the amount of the state distributions intercept authorized by the secretary of h finance and administration pursuant to the State Aid Intercept u » r Act or by the amount of the state distribution interceptHTRC/HB t6/a hPage g24 eintercept authorized pursuant to an ordinance or a resolution passed by l i h r i s the county or municipality and a written agreement with the New h , e h Mexico finance authority.

The secretary shall transfer the t u g e b l state distributions intercept amount to the municipal or county e e , gh n d d i = = o h treasurer or other person designated by the secretary of l ] b ,d i a º r finance and administration or to the New Mexico finance e r = t e w d authority pursuant to written agreement to pay the debt service mto aavoid ndefault oon dqualified mlocal :revenue bonds or meet other local revenue bond, loan or other debt obligations of the municipality or county to the New Mexico finance authority.

b r e t º o t n = .213724.9 s k m e - 24 - e a n e d r e l u [ A d to avoid default on qualified local revenue bonds or meet other local revenue bond, loan or other debt obligations of the municipality or county to the New Mexico finance authority.

and (2) after an adjustment of a distribution or transfer of net receipts creating a recoverable amount owed to the department shall be subordinate to any collection of any recoverable amount pursuant to Paragraph (2) of HTRC/HB 6/a Page 25 Subsection B of this section.

Upon the direction of the secretary of finance and administration pursuant to Section 9-6-5.2 NMSA 1978, the h secretary shall temporarily withhold the balance of a u » r distribution to a municipality or county, net of any decrease t h g e or redirected amount pursuant to Subsection H of this section l i h r i s and any recoverable amount pursuant to Paragraph (2) of h , e h Subsection B of this section, that has failed to submit an t u g e b l audit report required by the Audit Act or a financial report e e , gh n d d i = = o h required by Subsection F of Section 6-6-2 NMSA 1978.

The l ] b ,d i a º r amount to be withheld, the source of the withheld distribution e r = t e w d and the number of months that the distribution is to be mwithheld ashall nbe oas ddirected mby :the secretary of finance and administration.

b r e t º o t n = .213724.9 s k m e - 25 - e a n e d r e l u [ A d HTRC/HB 6 withheld shall be as directed by the secretary of finance and administration.

(1) "amounts relating to the current month" means any amounts included in the net receipts of the current month that represent payment of tax due for the current month, correction of amounts processed in the current month HTRC/HB 6/a Page 26 that relate to the current month or that otherwise relate to obligations due for the current month;

(2) "amounts relating to prior periods" means h any amounts processed during the current month that adjust u » r amounts processed in a period or periods prior to the current t h g e month regardless of whether the adjustment is a correction of a l i h r i s department error or due to the filing of amended returns, h , e h payment of department-issued assessments, filing or approval of t u g e b l claims for refund, audit adjustments or other cause;

e e , gh n d d i = = o h (3) "average distribution or transfer amount" l ] b ,d i a º r means the following amounts;

provided that a distribution or e r = t e w d transfer that is negative shall not be used in calculating the mamounts: a n o d m :

b(a) rthe eaverage tmonthly ºamount odistributed tor ntransferred =to .213724.9 s k m e - 26 - e a nmunicipality eor dcounty rin ethe lthirty-six-month uperiod [preceding Athe dcurrent amounts:month;

(a)(b) theif [annuala ]distribution average [of the total] monthly amount distributed or transferredtransfer to a municipality or county inhas [eachbeen ofmade thefor threeless twelve-monththan periodsthree ]years, the thirty-average six-monthmonthly amount distributed or transferred in the twelve-month period preceding the current month;

(b)or (c) if a distribution or transfer to a municipality or county has been made for less than threetwelve years,months, the [total ] average monthly amount distributed or transferred into the [yearmunicipality ]or twelve-monthcounty periodin the months preceding the HTRC/HB 6/a Page 27 current month;

or (c) if distribution or transfer to a municipality or county has [not received distributions or transfers of net receipts for twelve or more] been made for less than twelve months, the average monthly [average of net receipts] amount distributed or transferred to the municipality or county in the months preceding the current month [multiplied by twelve];

and h (5) "repayment agreement" means an agreement g o between the department and a municipality or county under which t hr g e i k the municipality or county agrees to allow the department to h r i s recover an amount determined pursuant to Paragraph (2) of h , t, Subsection B of this section by decreasing distributions or e u g e b l transfers to the municipality or county for one or more months e e h n d d i = = o h beginning with the distribution or transfer to be made with l ] b ,d i a º e respect to a designated month.

No interest shall be charged." r i = r t e w d SECTION 8.

Section 7-1-6.38 NMSA 1978 (being Laws 1994, mChapter a145, nSection o1, das mamended) :is amended to read:

b e d s º o t n = .213724.9 s k m e - 27 - e a n e d r e l u [ A d HTRC/HB 6 Chapter 145, Section 1, as amended) is amended to read:

A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made in amounts equal to the following percentages of the net receipts attributable to the governmental gross receipts tax, less the net receipts attributable to a hospital licensed by the department of health:

[inHTRC/HB an6/a amountPage equal28 to(2) seventy-fivetwenty-four percent ofto the netenergy, receiptsminerals attributableand tonatural theresources governmentaldepartment; gross receipts tax.

provided that forty-one and two-thirds percent of the distribution is appropriated to the energy, minerals and natural resources department to implement the provisions of the New Mexico Youth Conservation Corps Act and fifty-eight and one-third percent of the distribution is appropriated to the energy, minerals and natural resources department for state park and recreation area capital improvements, including the costs of planning, engineering, design, construction, renovation, repair, equipment and furnishings;

and (3) one percent to the cultural affairs department for capital improvements at state museums and monuments administered by the cultural affairs department.

AThe distributionstate pursuantpledges to Sectionand 7-1-6.1agrees NMSAwith shallthe beholders made]of hany (2)bonds twenty-fouror percentnotes toissued by the energy,New uMexico »finance rauthority or by the energy, minerals and natural resources department [inand anpayable amountfrom equalthe tnet hreceipts gattributable eto the governmental gross receipts tax distributed to twenty-fourthe percentNew Mexico finance authority or the energy, minerals and natural resources department pursuant to this section that the state will not limit, reduce or alter the distribution of the net receipts attributable to the lgovernmental igross hreceipts rtax ito sthe New Mexico finance authority or the energy, minerals and natural resources HTRC/HB 6/a Page 29 department or limit, reduce or alter the rate of imposition of the governmental gross receipts tax];tax until the bonds or notes together with the interest thereon are fully met and discharged.

providedThe thatNew forty-oneMexico andfinance hauthority ,and e h two-thirds percent of the distribution is appropriated to the t u g e b l energy, minerals and natural resources department toare implementauthorized eto einclude ,this ghpledge nand dagreement d i = = o h the provisions of the Newstate Mexicoin Youthany Conservationagreement Corpswith Actthe lholders ] b ,d i a º r and fifty-eight and one-third percent of the distributionbonds isor enotes." rSECTION =9. t e w d appropriated to the energy, minerals and natural resources m a n o d m :

b r e t º o t n = .213724.9 s k m e - 28 - e a n e d r e l u [ A dnew departmentsection forof state park and recreation area capital improvements, including the costsTax ofAdministration planning,Act engineering,is design,enacted construction,to renovation,read: repair, equipment and furnishings;

[C."DISTRIBUTION--MUNICIPALITIES AND COUNTIES.-- A.

APrior to July 1, 2021, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made]made and (3) one percent to themunicipalities [officefrom of] cultural affairs [in an amount equal to one percent of the net receipts attributable to the governmental gross receipts tax]tax departmentin foran capitalamount improvementsequal atto stateone museumsmillion andtwo monumentshundred administeredfifty bythousand thedollars [office($1,250,000). of ] cultural affairs department.

[D.]The B.amount to be distributed to each municipality shall be in proportion to the population of each municipality in the proportion that the population of each municipality is to the total population of all municipalities, according to the most recent federal decennial census.

The state pledges to and agrees with the holders of any bonds or notes issued by the New Mexico finance authority or by the energy, minerals and natural resources department and payable from the net receipts attributable to the governmental gross receipts tax distributed to the New Mexico finance authority or the energy, minerals and natural resources department pursuant to this section that the state will not limit, reduce or alter the distribution of the net h receipts attributable to the governmental gross receipts tax to g o the New Mexico finance authority or the energy, minerals and t hr g e i k natural resources department or limit, reduce or alter the rate h r i s of imposition of the governmental gross receipts tax until the h , t, bonds or notes together with the interest thereon are fully met e u g e b l and discharged.

The New Mexico finance authority and the e e h n d d i = = o h energy, minerals and natural resources department are l ] b ,d i a º e authorized to include this pledge and agreement of the state in r i = r t e w d any agreement with the holders of the bonds or notes." m a n o d m :

b e d s º o t n = .213724.9 s k m e - 29 - e a n e d r e l u [ A d HTRC/HB 6 SCORCºSECTION 9.

Section 7-1-6.46 NMSA 1978 (being Laws 2004, Chapter 116, Section 1, as amended) is amended to read:

"7-1-6.46.

DISTRIBUTION TO MUNICIPALITIES--OFFSET FOR FOOD DEDUCTION AND HEALTH CARE PRACTITIONER SERVICES DEDUCTION.-- A.

For a municipality that [has not elected to impose] does not have in effect a municipal hold harmless gross receipts tax through an ordinance and that has a population of less than ten thousand according to the most recent federal decennial census, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to [a] the municipality in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the [sum of:

(1) the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations attributable to the municipality multiplied h by the sum of the combined rate of all municipal local option u » r t h gross receipts taxes in effect in the municipality for the g e l i month plus one and two hundred twenty-five thousandths percent;

h r i s and h , e h t u g (2) the total deductions claimed pursuant to e b l e e , gh Section 7-9-93 NMSA 1978 for the month by taxpayers from n d d i = = o h business locations attributable to the municipality multiplied l ] b ,d i a º r e r = by the sum of the combined rate of all municipal local option t e w d m a n o gross receipts taxes in effect in the municipality for the d m :

b r e t º o t n = .213724.9 s k m e - 30 - e a n e d r e l u [ A d month plus one and two hundred twenty-five thousandths percent] applicable maximum distribution for the municipality.

ForPrior a municipality that does not have in effect a municipal hold harmless gross receipts tax through an ordinance and that has a population of at least ten thousand but less than twenty-five thousand according to theJuly most1, recent2021, federal decennial census, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to thecounties municipalityfrom inthe annet amount,receipts subjectattributable to anythe increasegross orreceipts decreasetax madein pursuantan toamount Section 7-1-6.15 NMSA 1978, equal to eighty-twoseven percenthundred offifty thethousand applicabledollars maximum($750,000). distribution for the municipality.

[B.]The C.amount to be distributed to each county HTRC/HB 6/a Page 30 shall be in the proportion that the population of each county is to the total population of all counties, according to the most recent federal decennial census." SECTION 10.

For a municipality not described in Subsection A or B of this section, a distribution pursuant to Section 7-1-6.17-1-11 NMSA 1978 shall(being beLaws made1965, toChapter the248, municipalitySection in16, anas amount,amended) subjectis toamended any increase or decrease made pursuant to Sectionread: 7-1-6.15 NMSA 1978, equal to the [sum of:

(1)"7-1-11. the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations attributable to the municipality multiplied h g by the sum of the combined rate of all municipal local option o t hr gross receipts taxes in effect in the municipality on January g e i k 1, 2007 plus one and two hundred twenty-five thousandths h r i s h percent in the following percentages:

,INSPECTION t,OF eBOOKS uOF gTAXPAYERS--EXCEPTION (a)FOR priorMARKETPLACE toPROVIDERS JulyAND 1,MARKETPLACE 2015,SELLERS--CREDENTIALS.-- oneA. hundred e b l e e h percent;

nTo ddetermine dthe icorrect =amount =of otax hdue, (b)the ondepartment orshall aftercause Julythe 1,records 2015 and priorbooks lof ]account bof ,dtaxpayers ito abe ºinspected eor raudited iat =such rtimes toas Julythe 1,department 2016,deems ninety-fournecessary percent;for the effective execution of the department's responsibilities.

t e w d m a n o (c) on or after July 1, 2016 and prior d m :

b e d s º o t n = .213724.9 s k m e - 31 - e a n e d r e l u [ A d HTRC/HB 6 to July 1, 2017, eighty-eight percent;

(d) on or after July 1, 2017 and prior to July 1, 2018, eighty-two percent;

(e) on or after July 1, 2018 and prior to July 1, 2019, seventy-six percent;

(f) on or after July 1, 2019 and prior to July 1, 2020, seventy percent;

(g) on or after July 1, 2020 and prior to July 1, 2021, sixty-three percent;

(h) on or after July 1, 2021 and prior to July 1, 2022, fifty-six percent;

(i) on or after July 1, 2022 and prior to July 1, 2023, forty-nine percent;

(j) on or after July 1, 2023 and prior to July 1, 2024, forty-two percent;

(k) on or after July 1, 2024 and prior h g to July 1, 2025, thirty-five percent;

o t hr (l) on or after July 1, 2025 and prior g e i k to July 1, 2026, twenty-eight percent;

h r i s h (m) on or after July 1, 2026 and prior , t, e u g to July 1, 2027, twenty-one percent;

e b l e e h (n) on or after July 1, 2027 and prior n d d i = = o h l ] b ,d to July 1, 2028, fourteen percent;

and i a º e r i = r (o) on or after July 1, 2028 and prior t e w d m a n o to July 1, 2029, seven percent;

and d m :

b e d s º o t n = .213724.9 s k m e - 32 - e a n e d r e l u [ A d (2) the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations attributable to the municipality multiplied by the sum of the combined rate of all municipal local option gross receipts taxes in effect in the municipality on January 1, 2007 plus one and two hundred twenty-five thousandths percent in] applicable maximum distribution for the municipality multiplied by the following percentages:

[(a) prior to July 1, 2015, one hundred percent;

(b) on or after July 1, 2015 and prior to July 1, 2016, ninety-four percent;

(c) on or after July 1, 2016 and prior to July 1, 2017, eighty-eight percent;

(d) on or after July 1, 2017 and prior to July 1, 2018, eighty-two percent;

(e) on or after July 1, 2018 and prior to July 1, 2019, seventy-six percent;

(f)] (1) on or after July 1, 2019 and prior to h g July 1, 2020, seventy percent;

o t hr [(g)] (2) on or after July 1, 2020 and prior g e i k to July 1, 2021, sixty-three percent;

h r i s h [(h)] (3) on or after July 1, 2021 and prior , t, e u g to July 1, 2022, fifty-six percent;

e b l e e h [(i)] (4) on or after July 1, 2022 and prior n d d i = = o h to July 1, 2023, forty-nine percent;

l ] b ,d i a º e r i = r [(j)] (5) on or after July 1, 2023 and prior t e w d m a n o to July 1, 2024, forty-two percent;

d m :

b e d s º o t n = .213724.9 s k m e - 33 - e a n e d r e l u [ A d HTRC/HB 6 [(k)] (6) on or after July 1, 2024 and prior to July 1, 2025, thirty-five percent;

[(l)] (7) on or after July 1, 2025 and prior to July 1, 2026, twenty-eight percent;

[(m)] (8) on or after July 1, 2026 and prior to July 1, 2027, twenty-one percent;

[(n)] (9) on or after July 1, 2027 and prior to July 1, 2028, fourteen percent;

[and (o)] (10) on or after July 1, 2028 and prior to July 1, 2029, seven percent;

and (11) on or after July 1, 2029, zero percent.

[C.

The] D.

A distribution pursuant to [Subsections A and B of] this section is in lieu of revenue that would have been received by the municipality but for the deductions provided by Sections 7-9-92 and 7-9-93 NMSA 1978.

The distribution shall be considered gross receipts tax revenue h g and shall be used by the municipality in the same manner as o t hr gross receipts tax revenue, including payment of gross receipts g e i k tax revenue bonds.

[A distribution pursuant to this section to h r i s h a municipality not described in Subsection A of this section or , t, e u g to a municipality that has imposed a gross receipts tax through e b l e e h an ordinance that does not provide a deduction contained in the n d d i = = o h l ] b ,d Gross Receipts and Compensating Tax Act shall not be made on or i a º e r i = r after July 1, 2029.

t e w d m a n o D.] E.

If the [reductions] changes made by this d m :

b e d s º o t n = .213724.9 s k m e - 34 - e a n e d r e l u [ A d [2013] 2019 act to the distributions made pursuant to [Subsections A and B of] this section impair the ability of a municipality to meet its principal or interest payment obligations for revenue bonds that are outstanding prior to July 1, [2013] 2019 and that are secured by the pledge of all or part of the municipality's revenue from the distribution made pursuant to this section, then the amount distributed pursuant to this section to that municipality shall be increased by an amount sufficient to meet the required payment;

provided that the total amount distributed to that municipality pursuant to this section does not exceed the amount that would have been due that municipality pursuant to this section as it was in effect on June 30, [2013] 2019.

[E.] F.

For the purposes of this section:

(1) "business locations attributable to the municipality" means business locations:

[(1)] (a) within the municipality;

[(2)] (b) on land owned by the state, commonly known as the "state fairgrounds", within the exterior h g boundaries of the municipality;

o t hr [(3)] (c) outside the boundaries of the g e i k municipality on land owned by the municipality;

and h r i s h [(4)] (d) on an Indian reservation or , t, e u g pueblo grant in an area that is contiguous to the municipality e b l e e h and in which the municipality performs services pursuant to a n d d i = = o h contract between the municipality and the Indian tribe or l ] b ,d i a º e r i = r Indian pueblo if:

[(a)] 1) the contract describes an area in t e w d m a n o which the municipality is required to perform services and d m :

b e d s º o t n = .213724.9 s k m e - 35 - e a n e d r e l u [ A d HTRC/HB 6 requires the municipality to perform services that are substantially the same as the services the municipality performs for itself;

and [(b)] 2) the governing body of the municipality has submitted a copy of the contract to the secretary;

and (2) "maximum distribution" means:

(a) for a municipality that has a population of less than ten thousand according to the most recent federal decennial census, the total deductions claimed pursuant to Sections 7-9-92 and 7-9-93 NMSA 1978 for the month by taxpayers from business locations attributable to the municipality multiplied by the sum of the combined rate of all municipal local option gross receipts taxes in effect in the municipality plus one and two hundred twenty-five thousandths percent;

and (b) for a municipality that has a h population of ten thousand or more according to the most recent u » r t h federal decennial census, the total deductions claimed pursuant g e l i to Sections 7-9-92 and 7-9-93 NMSA 1978 for the month by h r i s taxpayers from business locations attributable to the h , e h t u g municipality multiplied by the sum of the combined rate of all e b l e e , gh municipal local option gross receipts taxes in effect in the n d d i = = o h municipality on January 1, 2007 plus one and two hundred l ] b ,d i a º r e r = twenty-five thousandths percent.

t e w d m a n o [F.] G.

A distribution pursuant to this section may d m :

b r e t º o t n = .213724.9 s k m e - 36 - e a n e d r e l u [ A d be adjusted for a distribution made to a tax increment development district with respect to a portion of a gross receipts tax increment dedicated by a municipality pursuant to the Tax Increment for Development Act." SECTION 10.

Section 7-1-6.47 NMSA 1978 (being Laws 2004, Chapter 116, Section 2, as amended) is amended to read:

"7-1-6.47.

DISTRIBUTION TO COUNTIES--OFFSET FOR FOOD DEDUCTION AND HEALTH CARE PRACTITIONER SERVICES DEDUCTION.-- A.

For a county that [has not elected to impose] does not have in effect a county hold harmless gross receipts tax through an ordinance and that has a population of less than forty-eight thousand according to the most recent federal decennial census, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to [a] the county in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the [sum of:

(1) the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations within a municipality in the county h multiplied by the combined rate of all county local option u » r t h gross receipts taxes in effect for the month that are imposed g e l i throughout the county;

h r i s (2) the total deductions claimed pursuant to h , e h t u g Section 7-9-92 NMSA 1978 for the month by taxpayers from e b l e e , gh business locations in the county but not within a municipality n d d i = = o h multiplied by the combined rate of all county local option l ] b ,d i a º r e r = gross receipts taxes in effect for the month that are imposed t e w d m a n o in the county area not within a municipality;

d m :

b r e t º o t n = .213724.9 s k m e - 37 - e a n e d r e l u [ A d HTRC/HB 6 (3) the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations within a municipality in the county multiplied by the combined rate of all county local option gross receipts taxes in effect for the month that are imposed throughout the county;

and (4) the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations in the county but not within a municipality multiplied by the combined rate of all county local option gross receipts taxes in effect for the month that are imposed in the county area not within a municipality] applicable maximum distribution for the county.

ForThe adepartment countyshall notaudit describeda inmarketplace Subsectionprovider, Abut ofnot thisa section,marketplace aseller, distributionwith pursuantrespect to Sectiongross 7-1-6.1receipts NMSAfrom shalltransactions befacilitated madeby toa themarketplace countyprovider inand anfor amount,which subjectthe tomarketplace anyseller hmay increaseclaim ora decreasededuction made pursuant to Section 7-1-6.1536 NMSAof uthis »2019 ract, tunless han 1978,audit equalof the marketplace seller is necessary to determine the [sumcorrect of:amount of tax due, including examining the marketplace seller:

g e l i (1) the total deductions claimed pursuant to hdetermine rcompliance iwith s Section 7-9-9236 NMSA 1978 for the month by taxpayers from h , e h t u g business locations within a municipality in the county e b l e e , gh multiplied by the combined rate of allthis county2019 localact; option n d d i = = o h gross receipts taxes in effect on January 1, 2007 that are l ] b ,d i a º r e r = imposed throughout the county in the following percentages:

t(2) eto wdetermine dif mthe amarketplace nprovider oshould (a)be priorrelieved of liability pursuant to JulySubsection 1,C 2015,of oneHTRC/HB hundred6/a dPage m31 :Section 7-9-5 NMSA 1978;

bor r(3) eto tenforce ºany oother tprovision nof =the .213724.9Tax sAdministration kAct. m e - 38 - e a n e d r e l u [ A d percent;

(b) on or after July 1, 2015 and prior to July 1, 2016, ninety-four percent;

(c) on or after July 1, 2016 and prior to July 1, 2017, eighty-eight percent;

(d) on or after July 1, 2017 and prior to July 1, 2018, eighty-two percent;

(e) on or after July 1, 2018 and prior to July 1, 2019, seventy-six percent;

(f) on or after July 1, 2019 and prior to July 1, 2020, seventy percent;

(g) on or after July 1, 2020 and prior to July 1, 2021, sixty-three percent;

(h) on or after July 1, 2021 and prior to July 1, 2022, fifty-six percent;

(i) on or after July 1, 2022 and prior to July 1, 2023, forty-nine percent;

(j) on or after July 1, 2023 and prior to July 1, 2024, forty-two percent;

h g (k) on or after July 1, 2024 and prior o t hr to July 1, 2025, thirty-five percent;

g e i k (l) on or after July 1, 2025 and prior h r i s h to July 1, 2026, twenty-eight percent;

, t, e u g (m) on or after July 1, 2026 and prior e b l e e h to July 1, 2027, twenty-one percent;

n d d i = = o h (n) on or after July 1, 2027 and prior l ] b ,d i a º e r i = r to July 1, 2028, fourteen percent;

and t e w d m a n o (o) on or after July 1, 2028 and prior d m :

b e d s º o t n = .213724.9 s k m e - 39 - e a n e d r e l u [ A d HTRC/HB 6 to July 1, 2029, seven percent;

(2) the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations in the county but not within a municipality multiplied by the combined rate of all county local option gross receipts taxes in effect on January 1, 2007 that are imposed in the county area not within a municipality in the following percentages:

(a) prior to July 1, 2015, one hundred percent;

(b) on or after July 1, 2015 and prior to July 1, 2016, ninety-four percent;

(c) on or after July 1, 2016 and prior to July 1, 2017, eighty-eight percent;

(d) on or after July 1, 2017 and prior to July 1, 2018, eighty-two percent;

h g (e) on or after July 1, 2018 and prior o t hr to July 1, 2019, seventy-six percent;

g e i k (f) on or after July 1, 2019 and prior h r i s h to July 1, 2020, seventy percent;

, t, e u g (g) on or after July 1, 2020 and prior e b l e e h to July 1, 2021, sixty-three percent;

n d d i = = o h l ] b ,d (h) on or after July 1, 2021 and prior i a º e r i = r to July 1, 2022, fifty-six percent;

t e w d m a n o (i) on or after July 1, 2022 and prior d m :

b e d s º o t n = .213724.9 s k m e - 40 - e a n e d r e l u [ A d to July 1, 2023, forty-nine percent;

(j) on or after July 1, 2023 and prior to July 1, 2024, forty-two percent;

(k) on or after July 1, 2024 and prior to July 1, 2025, thirty-five percent;

(l) on or after July 1, 2025 and prior to July 1, 2026, twenty-eight percent;

(m) on or after July 1, 2026 and prior to July 1, 2027, twenty-one percent;

(n) on or after July 1, 2027 and prior to July 1, 2028, fourteen percent;

and (o) on or after July 1, 2028 and prior to July 1, 2029, seven percent;

(3) the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations within a municipality in the county multiplied by the combined rate of all county local option gross receipts taxes in effect on January 1, 2007 that are imposed throughout the county in the following percentages:

h g (a) prior to July 1, 2015, one hundred o t hr percent;

g e i k (b) on or after July 1, 2015 and prior h r i s h to July 1, 2016, ninety-four percent;

, t, e u g (c) on or after July 1, 2016 and prior e b l e e h to July 1, 2017, eighty-eight percent;

n d d i = = o h (d) on or after July 1, 2017 and prior l ] b ,d i a º e r i = r to July 1, 2018, eighty-two percent;

t e w d m a n o (e) on or after July 1, 2018 and prior d m :

b e d s º o t n = .213724.9 s k m e - 41 - e a n e d r e l u [ A d HTRC/HB 6 to July 1, 2019, seventy-six percent;

(f) on or after July 1, 2019 and prior to July 1, 2020, seventy percent;

(g) on or after July 1, 2020 and prior to July 1, 2021, sixty-three percent;

(h) on or after July 1, 2021 and prior to July 1, 2022, fifty-six percent;

(i) on or after July 1, 2022 and prior to July 1, 2023, forty-nine percent;

(j) on or after July 1, 2023 and prior to July 1, 2024, forty-two percent;

(k) on or after July 1, 2024 and prior to July 1, 2025, thirty-five percent;

(l) on or after July 1, 2025 and prior to July 1, 2026, twenty-eight percent;

(m) on or after July 1, 2026 and prior h g to July 1, 2027, twenty-one percent;

o t hr (n) on or after July 1, 2027 and prior g e i k to July 1, 2028, fourteen percent;

and h r i s h (o) on or after July 1, 2028 and prior , t, e u g to July 1, 2029, seven percent;

and e b l e e h (4) the total deductions claimed pursuant to n d d i = = o h l ] b ,d Section 7-9-93 NMSA 1978 for the month by taxpayers from i a º e r i = r business locations in the county but not within a municipality t e w d m a n o multiplied by the combined rate of all county local option d m :

b e d s º o t n = .213724.9 s k m e - 42 - e a n e d r e l u [ A d gross receipts taxes in effect on January 1, 2007 that are imposed in the county area not within a municipality in] applicable maximum distribution multiplied by the following percentages:

[(a) prior to July 1, 2015, one hundred percent;

(b) on or after July 1, 2015 and prior to July 1, 2016, ninety-four percent;

(c) on or after July 1, 2016 and prior to July 1, 2017, eighty-eight percent;

(d) on or after July 1, 2017 and prior to July 1, 2018, eighty-two percent;

(e) on or after July 1, 2018 and prior to July 1, 2019, seventy-six percent;

(f)] (1) on or after July 1, 2019, and prior to July 1, 2020, seventy percent;

[(g)] (2) on or after July 1, 2020 and prior to July 1, 2021, sixty-three percent;

[(h)] (3) on or after July 1, 2021 and prior h g to July 1, 2022, fifty-six percent;

o t hr [(i)] (4) on or after July 1, 2022 and prior g e i k to July 1, 2023, forty-nine percent;

h r i s h [(j)] (5) on or after July 1, 2023 and prior , t, e u g to July 1, 2024, forty-two percent;

e b l e e h [(k)] (6) on or after July 1, 2024 and prior n d d i = = o h to July 1, 2025, thirty-five percent;

l ] b ,d i a º e r i = r [(l)] (7) on or after July 1, 2025 and prior t e w d m a n o to July 1, 2026, twenty-eight percent;

d m :

b e d s º o t n = .213724.9 s k m e - 43 - e a n e d r e l u [ A d HTRC/HB 6 [(m)] (8) on or after July 1, 2026 and prior to July 1, 2027, twenty-one percent;

[(n)] (9) on or after July 1, 2027 and prior to July 1, 2028, fourteen percent;

[and (o)] (10) on or after July 1, 2028 and prior to July 1, 2029, seven percent;

and (11) on or after July 1, 2029, zero percent.

[The]Auditors A distribution pursuant to [Subsections A and Bother of]officials thisof sectionthe isdepartment indesignated lieuby ofthe revenuesecretary thatare wouldauthorized haveto beenrequest receivedand byrequire the countyproduction but for theexamination deductionsof providedthe byrecords Sectionsand 7-9-92books andof 7-9-93account NMSAof 1978.a taxpayer.

TheAuditors distributionand shallofficials beof consideredthe grossdepartment receiptsdesignated taxby revenuethe andsecretary shall be usedfurnished bywith thecredentials countyidentifying inthem theas samesuch, mannerwhich asthey grossshall receiptsdisplay taxto revenue,any includingtaxpayer paymentwhose ofbooks grossare receiptssought taxto revenuebe bonds.examined.

[A distribution pursuant to this section to a county not described in Subsection A of this section or to a county that has imposed h g a gross receipts tax through an ordinance that does not provide o t hr a deduction contained in the Gross Receipts and Compensating g e i k Tax Act shall not be made on or after July 1, 2029.] h r i s h D.

IfTaxpayers theshall [reductions]upon changesrequest mademake bytheir thisrecords [2013]and ,books t,of eaccount uavailable gfor 2019inspection actat toreasonable thehours distributions made pursuant to [Subsections A e b l e e h and B of] this section impair the abilitysecretary of a county to meet n d d i = = o h l ] b ,d its principal or interestthe paymentsecretary's obligationsdelegate forwho revenuepresents bondsproper iidentification a º e r i = r that are outstanding prior to July 1, [2013] 2019 and that are t e w d m a n o secured by the pledgetaxpayer. of all or part of the county's revenue d m :

b e d s º o t n = .213724.9 s k m e - 44 - e a n e d r e l u [ A d from the distribution made pursuant to this section, then the amount distributed pursuant to this section to that county shall be increased by an amount sufficient to meet the required payment;

provided that the total amount distributed to that county pursuant to this section does not exceed the amount that would have been due that county pursuant to this section as it was in effect on June 30, [2013] 2019.

AIf distributionthe pursuanttaxpayer's torecords thisand sectionbooks mayof beaccount adjusteddo fornot aexist distributionor madeare insufficient to adetermine the taxpayer's tax incrementliability, developmentif districtany, withthe respectdepartment tomay ause portionany ofreasonable amethod grossof receiptsestimating the tax incrementliability, dedicatedincluding byusing ainformation countyabout pursuantsimilar topersons, thebusinesses Taxor Incrementindustries forto Developmentestimate Act.the taxpayer's liability.

ForThe purposessecretary or the secretary's delegate shall develop and maintain written audit policies and procedures for all audit programs in which the department routinely conducts field audits of thistaxpayers, section,including "maximumpolicies distribution"and means:HTRC/HB 6/a Page 32 procedures concerning audit notification, scheduling, records that may be examined, analysis that may be done, sampling procedures, gathering information or evidence from third parties, policies concerning the rights of taxpayers under audit and related matters.

(1) for counties that have a population of less than forty-eight thousand according to the most recent federal decennial census, the sum of:

(a) the total deductions claimed pursuant to Sections 7-9-92 and 7-9-93 NMSA 1978 for the month h by taxpayers from business locations within a municipality in u » r t h the county multiplied by the combined rate of all county local g e l i option gross receipts taxes in effect for the month that are h r i s imposed throughout the county;

and h , e h t u g (b) the total deductions claimed e b l e e , gh pursuant to Sections 7-9-92 and 7-9-93 NMSA 1978 for the month n d d i = = o h by taxpayers from business locations in the county but not l ] b ,d i a º r e r = within a municipality multiplied by the combined rate of all t e w d m a n o county local option gross receipts taxes in effect for the d m :

b r e t º o t n = .213724.9 s k m e - 45 - e a n e d r e l u [ A d HTRC/HB 6 month that are imposed in the county area not within a municipality;

and (2) for counties that have a population of forty-eight thousand or more according to the most recent federal decennial census, the sum of:

(a) the total deductions claimed pursuant to Sections 7-9-92 and 7-9-93 NMSA 1978 for the month by taxpayers from business locations within a municipality in the county multiplied by the combined rate of all county local option gross receipts taxes in effect on January 1, 2007 that are imposed throughout the county;

and (b) the total deductions claimed pursuant to Sections 7-9-92 and 7-9-93 NMSA 1978 for the month by taxpayers from business locations in the county but not within a municipality multiplied by the combined rate of all county local option gross receipts taxes in effect on January h 1, 2007 that are imposed in the county area not within a u » r t h municipality."»SCORC g e l i SECTION 11 9.

A new section of the Tax Administration Act h r i s is enacted to read:

h , e h t u g "[NEW MATERIAL ] DISTRIBUTION--MUNICIPALITIES AND e b l e e , gh COUNTIES.-- n d d i = = o h A.

Prior to July 1, 2021, a distribution pursuant l ] b ,d i a º r e r = to Section 7-1-6.1 NMSA 1978 shall be made to municipalities t e w d m a n o from the net receipts attributable to the gross receipts tax in d m :

b r e t º o t n = .213724.9 s k m e - 46 - e a n e d r e l u [ A d an amount equal to one million two hundred fifty thousand dollars ($1,250,000).

The amount to be distributed to each municipality shall be in proportion to the population of each municipality in SCORCº proportion to the total population of all municipalities »SCORC SCORCºthe proportion that the population of each municipality is to the total population of all municipalities»SCORC, according to the most recent federal decennial census.

B.

Prior to July 1, 2021, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to counties from the net receipts attributable to the gross receipts tax in an amount equal to seven hundred fifty thousand dollars ($750,000).

The amount to be distributed to each county shall be in SCORCº proportion to the population of each county in proportion to the total population of all counties»SCORC SCORCº the proportion that the population of each county is to the total population of all counties»SCORC, according to the most recent federal decennial census." CCºSECTION 10.

Section 7-1-11 NMSA 1978 (being Laws h 1965, Chapter 248, Section 16, as amended) is amended to read:

g o t hr "7-1-11.

INSPECTION OF BOOKS OF TAXPAYERS--EXCEPTION FOR g e i k MARKETPLACE PROVIDERS AND MARKETPLACE SELLERS--CREDENTIALS.-- h r i s A.

To determine the correct amount of tax due, the h , t, e u g department shall cause the records and books of account of e b l e e h taxpayers to be inspected or audited at such times as the n d d i = = o h department deems necessary for the effective execution of the l ] b ,d i a º e r i = r department's responsibilities.

t e w d m a n o B.

The department shall audit a marketplace d m :

b e d s º o t n = .213724.9 s k m e - 47 - e a n e d r e l u [ A d HTRC/HB 6 provider, but not a marketplace seller, with respect to gross receipts from transactions facilitated by a marketplace provider and for which the marketplace seller may claim a deduction pursuant to Section 36 of this 2019 act, unless an audit of the marketplace seller is necessary to determine the correct amount of tax due, including examining the marketplace seller:

(1) to determine compliance with Section 36 of this 2019 act;

(2) to determine if the marketplace provider should be relieved of liability pursuant to Subsection C of Section 7-9-5 NMSA 1978;

or (3) to enforce any other provision of the Tax Administration Act.

[B.] C.

Auditors and other officials of the department designated by the secretary are authorized to h request and require the production for examination of the u » r t h records and books of account of a taxpayer.

Auditors and g e l i officials of the department designated by the secretary shall h r i s be furnished with credentials identifying them as such, which h , e h t u g they shall display to any taxpayer whose books are sought to be e b l e e , gh examined.

n d d i = = o h [C.] D.

Taxpayers shall upon request make their l ] b ,d i a º r e r = records and books of account available for inspection at t e w d m a n o reasonable hours to the secretary or the secretary's delegate d m :

b r e t º o t n = .213724.9 s k m e - 48 - e a n e d r e l u [ A d who presents proper identification to the taxpayer.

[D.] E.

If the taxpayer's records and books of account do not exist or are insufficient to determine the taxpayer's tax liability, if any, the department may use any reasonable method of estimating the tax liability, including [but not limited to] using information about similar persons, businesses or industries to estimate the taxpayer's liability.

[E.] F.

The secretary or the secretary's delegate shall develop and maintain written audit policies and procedures for all audit programs in which the department routinely conducts field audits of taxpayers, including policies and procedures concerning audit notification, scheduling, records that may be examined, analysis that may be done, sampling procedures, gathering information or evidence from third parties, policies concerning the rights of taxpayers under audit and related matters.

h g [F.] G.

Nothing in this section shall be construed o t hr to require the department to provide the following:

g e i k (1) information that is confidential pursuant h r i s h to Section 7-1-8 NMSA 1978;

or , t, e u g (2) methods, techniques and analysis used to e b l e e h select taxpayers for audit, including the use of:

n d d i = = o h (a) data analytics;

l ] b ,d i a º e r i = r (b) data mining;

t e w d m a n o (c) a scoring model;

d(d) minternal :controls;

b e d s º o t n = .213724.9 s k m e - 49 - e a n e d r e l u [ A d HTRC/HB 6 (d) internal controls;

[G.] H.

(2) "data mining" means the process of HTRC/HB 6/a Page 33 analyzing data from different perspectives and summarizing it into useful information by collecting data into data sets for the purpose of discovering patterns;

(4) "methods, techniques and [methodology] analysis" means a systematic way to accomplish a tactic, h g qualitative or quantitative component of research and the use o t hr of a specific method;

g e i k (5) "internal controls" means a process of h r i s h assuring achievement of an organization's objectives in , t, e u g operational effectiveness and efficiency, reliable financial e b l e e h reporting and compliance with laws, regulations and policies;

n d d i = = o h l ] b ,d [and] i a º e r i = r (6) "marketplace provider" means a t e w d m a n o "marketplace provider", as that term is used in the Gross dReceipts mand :Compensating Tax Act;

b e d s º o t n = .213724.9 s k m e - 50 - e a n e d r e l u [ A d Receipts and Compensating Tax Act;

and [(6)] (8) "metadata" means data that provides information about other data."»CCdata." SECTION 12 11.

HTRC/HB 6/a Page 34 "7-1-14.

[NEW MATERIAL ] LOCATION WHERE CERTAIN GROSS RECEIPTS ARE TO BE REPORTEDREPORTED--LOCATION SCORCº--LOCATION FOR TRANSACTIONS SUBJECT TO THE COMPENSATING TAX»SCORC.--TAX.-- A.

(1) gross receipts and deductions from the sale or lease of tangible personal property or licenses and from the licensing of tangible personal property shall be h reported to the location of delivery of that tangible personal g o t hr property to the customer;

provided that the reporting location g e i k for receipts from leasing a vehicle is the location where the h r i s customer first makes use of the vehicle;

h , t, (2) except as otherwise provided in this e u g e b l e e h section, a seller of services shall report the seller's gross n d d i = = o h receipts and deductions as follows:

l ] b ,d i a º e (a) professional services shall be r i = r t e w d m a n o reported to the seller's place of business;

d(b) mfor :a person engaged in the construction business, the location where the construction project is performed is the "place of business", and all gross receipts and deductions from that project are to be reported from that place of business;

b(c) efor d s º o t n = .213724.9 s k m e - 51 - e a nperson eengaged din rthe eHTRC/HB l6/a uPage [35 Abusiness dof HTRC/HBproviding 6services (b)with forrespect ato personthe engagedselling inof thereal constructionestate, business, the location whereof the constructionreal projectproperty is performed is the "place of business", and all gross receipts and deductions from that projectsale are to be reported from that place of business;

(c) for a person engaged in the business of providing services with respect to the selling of real estate, the location of the real property is the "place of business", and all gross receipts and deductions from that sale are to be reported from that place of business;

and h (4) the reporting location for gross receipts u » r and deductions from a customer for services provided by a t h g e transportation network company pursuant to the Transportation l i h r i s Network Company Services Act shall be the location where the h , e h customer enters the vehicle offered for a prearranged ride.

t u g e b l B.

Consistent with this section and with e e , gh n d d i = = o h intergovernmental agreements, the secretary may, by rule, l ] b ,d i a º r provide for the reporting of gross receipts and deductions from e r = t e w d transactions not otherwise specified in this section, including mreporting agross nreceipts oand ddeductions mto :locations:

b r e t º o t n = .213724.9 s k m e - 52 - e a n e d r e l u [ A d reporting gross receipts and deductions to locations:

and HTRC/HB 6/a Page 36 (2) for reporting tax imposed by taxing jurisdictions at the jurisdiction's location, including:

SCORCº C.

Values from transactions subject to the compensating tax shall be reported consistent with Subsections A and B of this section unless the taxpayer can demonstrate that the taxable use in New Mexico first occurred after the purchase, lease, license or other transaction giving rise to that value and that the first taxable use occurred in another location within the state.»SCORC h SCORCº C D»SCORC.

The secretary shall develop and g o t hr provide to taxpayers a location-rate database that sets out the g e i k tax rates applicable to locations within the state, by address, h r i s and sellers who properly rely on this database shall not be h , t, liable for any additional tax due to the use of an incorrect e u g e b l e e h rate." n d d i = = o h CCºSCORCº SECTION 13.

Section 7-2-7 NMSA 1978 (being Laws l ] b ,d i a º e 2005, Chapter 104, Section 4) is amended to read:

r i = r t e w d m a n o "7-2-7.

INDIVIDUAL INCOME TAX RATES.--The tax imposed by d m :

b e d s º o t n = .213724.9 s k m e - 53 - e a n e d r e l u [ A d HTRC/HB 6 Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning on or after January 1, [2008] 2019:

A.

For married individuals filing separate returns:

If the taxable income is:

The tax shall be:

[Not over $4,000 1.7% of taxable income Over $4,000 but not over $8,000 $68.00 plus 3.2% of excess over $4,000 Over $8,000 but not over $12,000 $196 plus 4.7% of excess over $8,000 Over $12,000 $384 plus 4.9% of excess over $12,000.

B.

For heads of household, surviving spouses and married individuals filing joint returns:

If the taxable income is:

The tax shall be:

Not over $8,000 1.7% of taxable income Over $8,000 but not over $16,000 $136 plus 3.2% of h g excess over $8,000 o t hr Over $16,000 but not over $24,000 $392 plus 4.7% of g e i k excess over $16,000 h r i s h Over $24,000 $768 plus 4.9% of , t, e u g excess over $24,000.

e b l e e h C.

For single individuals and for estates and n d d i = = o h l ] b ,d trusts:

i a º e r i = r If the taxable income is:

The tax shall be:

t e w d m a n o Not over $5,500 1.7% of taxable income d m :

b e d s º o t n = .213724.9 s k m e - 54 - e a n e d r e l u [ A d Over $5,500 but not over $11,000 $93.50 plus 3.2% of excess over $5,500 Over $11,000 but not over $16,000 $269.50 plus 4.7% of excess over $11,000 Over $16,000 $504.50 plus 4.9% of excess over $16,000.] Not over $5,000 1.7% of taxable income Over $5,000 but not over $7,500 $85.00 plus 3.2% of excess over $5,000 Over $7,500 but not over $17,500 $165 plus 4.7% of excess over $7,500 Over $17,500 but not over $37,500 $635 plus 5.2% of excess over $17,500 Over $37,500 but not over $75,000 $1,675 plus 5.5% of excess over $37,500 Over $75,000 but not over $150,000 $3,737 plus 5.8% of excess over $75,000 Over $150,000 $8,087 plus 6.5% of h g excess over $150,000.

o t hr B.

For heads of household, surviving spouses and g e i k married individuals filing joint returns:

h r i s h If the taxable income is:

The tax shall be:

, t, e u g Not over $10,000 1.7% of taxable income e b l e e h Over $10,000 but not over $15,000 $170 plus 3.2% of n d d i = = o h excess over $10,000 l ] b ,d i a º e r i = r Over $15,000 but not over $35,000 $330 plus 4.7% of excess t e w d m a n o over $15,000 d m :

b e d s º o t n = .213724.9 s k m e - 55 - e a n e d r e l u [ A d HTRC/HB 6 Over $35,000 but not over $75,000 $1,270 plus 5.2% of excess over $35,000 Over $75,000 but not over $150,000 $3,350 plus 5.5% of excess over $75,000 Over $150,000 but not over $300,000 $7,475 plus 5.8% of excess over $150,000 Over $300,000 $16,175 plus 6.5% of excess over $300,000.

ForValues singlefrom individualstransactions subject to the compensating tax shall be reported consistent with Subsections A and forB estatesof this section unless the taxpayer can demonstrate that the taxable use in New Mexico first occurred after the purchase, lease, license or other transaction giving rise to that value and trusts:that the first taxable use occurred in another location within the state.

IfD. the taxable income is:

The secretary shall develop and provide to taxpayers a location-rate database that sets out the tax rates applicable to locations within the state, by address, and sellers who properly rely on this database shall be:not be liable for any additional tax due to the use of an incorrect rate." SECTION 12.

Not over $6,650 1.7% of taxable income Over $6,650 but not over $10,000 $113 plus 3.2% of excess over $6,650 Over $10,000 but not over $23,500 $220 plus 4.7% of excess over $10,000 h g Over $23,500 but not over $50,000 $854 plus 5.2% of o t hr excess over $23,500 g e i k Over $50,000 but not over $100,000 $2,232 plus 5.5% of h r i s h excess over $50,000 , t, e u g Over $100,000 but not over $200,000 $4,982 plus 5.8% of e b l e e h excess over $100,000 n d d i = = o h l ] b ,d Over $200,000 $10,782 plus 6.5% of i a º e r i = r excess over $200,000.

t e w d m a n o D.

The tax on the sum of any lump-sum amounts d m :

b e d s º o t n = .213724.9 s k m e - 56 - e a n e d r e l u [ A d included in net income is an amount equal to five multiplied by the difference between:

(1) the amount of tax due on the taxpayer's taxable income;

and (2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income."»SCORC»CC CCºSECTION 12.

INDIVIDUAL INCOME TAX RATES.--The tax imposed HTRC/HB 6/a Page 37 by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning on or after January 1, [2008] 2021:

[NotNot over $4,000 1.7% of taxable income Over $4,000 but not over $8,000 $68.00 plus 3.2% of excess over $4,000 Over $8,000 but not over $12,000 $196 plus 4.7% of h g excess over $8,000 oOver t$12,000 hrbut Overnot $12,000over $157,500 $384 plus 4.9% of gexcess eover i$12,000 kOver $157,500 $7,513.50 plus 5.9% of excess over $12,000.$157,500.

h r i s h B.

For heads of household, surviving spouses and , t, e u g married individuals filing joint returns:

e b l e e h If the taxable income is:

The tax shall be:

n d d i = = o h Not over $8,000 1.7% of taxable income l ] b ,d i a º e r i = r Over $8,000 but not over $16,000 $136 plus 3.2% of t e w d m a n o excess over $8,000 d m :

b e d s º o t n = .213724.9 s k m e - 57 - e a n e d r e l u [ A d HTRC/HB 6 Over $16,000 but not over $24,000 $392 plus 4.7% of excess over $16,000 Over $24,000 $768 plus 4.9% of excess over $24,000.

C.

For single individuals and for estates and trusts:

Not over $5,500$8,000 1.7% of taxable income Over $5,500$8,000 but not over $11,000$16,000 $93.50$136 plus 3.2% of excess over $5,500$8,000 Over $11,000$16,000 but not over $16,000$24,000 $269.50$392 plus 4.7% of excess over $11,000 Over $16,000 $504.50 plus 4.9% of excess over $16,000.] Not over $4,000 1.7% of taxable income Over $4,000$24,000 but not over $8,000$315,000 $68.00$768 plus 3.2% of h g excess over $4,000 o t hr Over $8,000 but not over $12,000 $196 plus 4.7% of g e i k excess over $8,000 h r i s h Over $12,000 but not over $157,500 $384 plus 4.9% of , t, e u g excess over $12,000$24,000 e b l e e h Over $157,500$315,000 $7,513.50$15,027 plus 5.9% of nHTRC/HB d6/a dPage i38 = = o h l ] b ,d excess over $157,500.$315,000.

i a º e r i = r B.

For heads of household, surviving spouses and t e w d m a n o married individuals filing joint returns:

d m :

b e d s º o t n = .213724.9 s k m e - 58 - e a n e d r e l u [ A d If the taxable income is:

The tax shall be:

Not over $8,000 1.7% of taxable income Over $8,000 but not over $16,000 $136 plus 3.2% of excess over $8,000 Over $16,000 but not over $24,000 $392 plus 4.7% of excess over $16,000 Over $24,000 but not over $315,000 $768 plus 4.9% of excess over $24,000 Over $315,000 $15,027 plus 5.9% of excess over $315,000.