TAXPAYER DIVIDEND INCOME TAX REBATE FUND

HB 265 creates a new "Taxpayer Dividend Income Tax Rebate Fund" to distribute excess state revenues as direct tax rebates to New Mexico residents. The fund receives money from two sources: (1) excess oil and gas tax revenues (previously allocated to early childhood education), and (2) excess federal mineral leasing funds. Eligible residents who file a New Mexico income tax return by May 31 receive a rebate equal to the fund's prior year balance divided by the total number of filers. The rebate reduces tax liability or is refunded if it exceeds the amount owed.