The bill amends various sections of the New Mexico Tax Administration Act to enhance tax administration and compliance. Key changes include allowing attorney fees to be paid from revenue distributions, preventing interest accrual for taxpayers granted extensions to file returns, and clarifying that taxpayers with installment agreements are not considered delinquent for license or permit renewals. It also establishes a minimum civil penalty of five dollars that will not apply for certain tax payment failures, modifies the authority of the Secretary of Taxation and Revenue regarding tribal cooperative agreements, and allows excess property tax auction proceeds to be applied to outstanding tax debts.

Additionally, the bill introduces new definitions and clarifications related to taxation for partnerships and pass-through entities, updates the Film Production Tax Credit Act, and revises the Tobacco Products Tax Act. It establishes a new film production tax credit for eligible companies, allowing them to claim a credit of twenty-five percent of their direct production and postproduction expenditures in New Mexico, with a cap on total claims increasing to $160 million by fiscal year 2029. The bill also revises excise tax rates on tobacco products and includes provisions for cooperative agreements between the state and tribes for tax administration. The effective dates for the bill's provisions are staggered, with some sections taking effect on July 1, 2026, and others on January 1, 2027.

Statutes affected:
introduced version: 7-1-6, 7-1-13, 7-1-15.1, 7-1-16, 7-1-69, 7-1-29, 7-2F-12, 7-2F-13, 7-2F-15, 7-9-40, 7-12A-2, 7-12A-3, 7-38-38, 7-38-71, 9-11-12.1
Final Version: 7-1-6, 7-1-13, 7-1-15.1, 7-1-2, 7-1-69, 7-1-29, 7-2F-12, 7-2F-13, 7-2F-15, 7-9-40, 7-12A-2, 7-12A-3, 7-38-38, 7-38-71, 9-11-12.1