The proposed legislation amends the New Mexico Tax Administration Act to strengthen tax compliance and enforcement. Key changes include raising the threshold for installment agreements available for public inspection from $1,000 to $10,000 and requiring the Taxation and Revenue Department to retain these agreements for a minimum of three years. A new provision exempts taxpayers from interest assessments if their failure to pay is due to a good faith mistake of law. The bill also increases the minimum interest rate for overpayments from $1 to $10 and raises the minimum penalty for failure to pay taxes or file returns from $5 to $15. Stricter penalties for willful tax evasion are introduced, with the minimum fine increasing from $25 to $75 and the maximum fine for felony tax evasion rising from $10,000 to $50,000.

Additionally, the bill amends various sections regarding tax fraud, increasing the petty misdemeanor threshold for tax fraud from $250 to $500 and adjusting misdemeanor and felony classifications with new thresholds set at $1,000 and $5,000. It defines "sales suppression software" and outlines penalties for its use. The legislation also revises penalties for obstructing revenue laws, increasing the minimum fine from $250 to $1,000 and the maximum fine from $10,000 to $25,000. Penalties for assaulting a department employee are raised from a maximum of $500 to $5,000, and a new fourth-degree felony is established for revealing taxpayer information, carrying a fine of up to $5,000 and a potential employment ban from state positions for five years post-conviction. The effective dates for the provisions are set for July 1, 2025, and January 1, 2026, for different sections.

Statutes affected:
introduced version: 7-1-21, 7-1-67, 7-1-68, 7-1-69, 7-1-29, 7-1-71.4, 7-1-72, 7-1-73, 7-1-74, 7-1-75, 7-1-76