HB 265 would route excess revenues into a taxpayer rebate fund

The Department of Finance and Administration would transfer money left in the suspense fund to the taxpayer rebate fund. This applies to the balance in the excess extraction taxes suspense fund after the reserve transfer. The department would first transfer enough to bring state reserves to 25 percent of that year's recurring general fund spending. If the suspense fund balance is too small, all of it would go to reserves. The Department of Finance and Administration would calculate and make the transfer at the end of each fiscal year.

The department would provide income tax rebates to eligible residents from the fund. A resident would qualify by filing a New Mexico income tax return and not being another person's dependent. The rebate amount would equal the fund's balance at the end of the prior calendar year divided by the number of residents who filed returns for that year. A return filed after May 31 would not qualify. The rebate could reduce state income tax owed, and any amount above that tax would be refunded. These provisions would apply to tax years beginning on or after January 1, 2026. Rebates would be provided as soon as practicable.

The state would send certain excess federal mineral leasing receipts to the taxpayer rebate fund. This applies to the state's net receipts under the federal Mineral Leasing Act. The excess is the amount above the average net receipts for the previous five fiscal years. No money would go to the fund if receipts do not exceed that average. The Department of Finance and Administration would calculate whether there is an excess by June 30 each fiscal year and make any transfer as soon as practicable.