HB 162 — INSURANCE PREMIUM TAX PROVISIONS

HOUSEAN BILLACT 162RELATING 54THTO LEGISLATURETAXATION; - STATE OF NEW MEXICO - FIRST SESSIO, 2019 INTRODUCED BY Jim R.

Trujillo 6 8 FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE 10 AN ACT RELATING TO TAXATION;

156 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 7-1-2 NMSA 1978 (being Laws 1965, e t 17 Chapter 248, Section 2, as amended) is amended to read:

w l n d 18 "7-1-2.

APPLICABILITY.--The Tax Administration Act = = 19 applies to and governs:

a l i a e r 20 A.

the administration and enforcement of the a t m m 21 following taxes or tax acts as they now exist or may hereafter d r e 22 be amended:

c e s k 23 (1) Income Tax Act;

e a n b 24 (2) Withholding Tax Act;

u [ (3) Venture Capital Investment Act;

.211311.1 (4) Gross Receipts and Compensating Tax Act and any state gross receipts tax;

HB 162 (9) Special Fuels Supplier Tax Act;

Page 1 (10) Gasoline Tax Act;

e e 17 (15) Railroad Car Company Tax Act;

e e n d 18 (16) Investment Credit Act, rural job tax = = l ] 19 credit, Laboratory Partnership with Small Business Tax Credit a l r i 20 Act, Technology Jobs and Research and Development Tax Credit t e a t Act, Film Production Tax Credit Act, Affordable Housing Tax m m 21 e d r e 22 Credit Act and high-wage jobs tax credit;

c e r c 23 (17) Corporate Income and Franchise Tax Act;

e a n b 24 (18) Uniform Division of Income for Tax u [ Purposes Act;

.211311.1 - 2 - (19) Multistate Tax Compact;

[and ] (21) the telecommunications relay service surcharge imposed by Section 63-9F-11 NMSA 1978, which surcharge shall be considered a tax for the purposes of the Tax Administration Act;

the administration and enforcement of the following taxes, surtaxes, advanced payments or tax acts as HB 162 Page 2 they now exist or may hereafter be amended:

e e 17 (7) Oil and Gas Ad Valorem Production Tax Act;

e e n d 18 (8) Natural Gas Processors Tax Act;

= = l ] 19 (9) Oil and Gas Production Equipment Ad a l r i 20 Valorem Tax Act;

t e a t (10) Copper Production Ad Valorem Tax Act;

m m 21 e d r e 22 (11) any advance payment required to be made c e r c 23 by any act specified in this subsection, which advance payment e a n b 24 shall be considered a tax for the purposes of the Tax u [ Administration Act;

.211311.1 - 3 - (12) Enhanced Oil Recovery Act;

HB 162 Page 3 (1) Weight Distance Tax Act;

e e 17 (5) the solid waste assessment fee authorized e e n d 18 by the Solid Waste Act, which fee shall be considered a tax for = = l ] 19 purposes of the Tax Administration Act;

a l r i 20 (6) the water conservation fee imposed by t e a t Section 74-1-13 NMSA 1978, which fee shall be considered a tax m m 21 e d r e 22 for the purposes of the Tax Administration Act;

and c e r c 23 (7) the gaming tax imposed pursuant to the e a n b 24 Gaming Control Act;

and u [ D.

the administration and enforcement of all other .211311.1 - 4 - laws, with respect to which the department is charged with responsibilities pursuant to the Tax Administration Act, but only to the extent that the other laws do not conflict with the Tax Administration Act." SECTION 2.

"[NEW"DISTRIBUTION--PREMIUM MATERIAL] DISTRIBUTION--PREMIUM TAX.-- A.

A distribution pursuant to Section 7-1-6.1 NMSA HB 162 Page 4 1978 shall be made to the law enforcement protection fund in an amount equal to ten percent of the net receipts attributable to the premium tax from life, general casualty and title insurance business.

A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the fire protection fund of the net receipts attributable to the premium tax derived from property and vehicle insurance business." e e 17 SECTION 3.

A new section of the New Mexico Insurance Code e e n d 18 is enacted to read:

="SUPERINTENDENT = l ] 19 "[NEW MATERIAL] SUPERINTENDENT SHALL PROVIDE INFORMATION a l r i 20 TO THE TAXATION AND REVENUE DEPARTMENT NECESSARY TO ADMINISTER t e a t THE INSURANCE PREMIUM TAX ACT.--The superintendent shall m m 21 e d r e 22 provide to the taxation and revenue department information c e r c 23 regarding an insurer or plan subject to the Insurance Premium e a n b 24 Tax Act that is necessary to that department to administer the u [ provisions of the Insurance Premium Tax Act." .211311.1 - 5 - SECTION 4.

-HB 6162 -Page 85 1025 12 14 16 e e 17 e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .211311.1