Tax-code cleanup bill advances after removing tribal film-credit expansion and adopting rounding, interception fixes

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.