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 during 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 $5 for certain tax failures, modifies the Film Production Tax Credit Act, and clarifies the tobacco products tax on closed system cartridges. Additionally, the bill specifies that a check or electronic check not paid upon presentment does not constitute payment and introduces a final determination date for federal adjustments from audits.

Further amendments focus on film production incentives, including new definitions and provisions that enhance the Film Production Tax Credit Act. The bill allows for a 25% tax credit on direct production and postproduction expenditures in New Mexico and introduces a nonresident below-the-line crew credit of 15% on wages for nonresident crew members. It also updates definitions related to tobacco products and establishes new excise tax rates. The bill addresses the distribution of sale proceeds from property sales, requiring that any balance be applied to property tax owed by former owners, and allows for tribal cooperative agreements for tax administration. The effective dates for various sections are set for July 1, 2026, and 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