New Mexico 2022 Regular Session

New Mexico Senate Bill SB55

Caption

Audit Requirements For Tax Exempts

Impact

This legislation has significant implications for charitable organizations and public institutions that rely on donations and grants. By enforcing stricter audit requirements for larger organizations, SB55 aims to ensure that public funds and resources are managed responsibly. Moreover, it increases the accountability of these organizations, compelling them to maintain detailed records and transparently report their financial status. Failure to comply with these requirements could result in penalties, thus incentivizing organizations to adhere to proper accounting practices.

Summary

Senate Bill 55 aims to revise the requirements for audits of tax-exempt organizations in New Mexico. The bill stipulates that organizations with gross annual income over $750,000 must undergo an annual audit performed by an independent professional auditor according to generally accepted governmental auditing standards. The results of the audit must then be submitted to the relevant state agency and made available to the public, fostering transparency in how these organizations operate and handle funds.

Contention

There are notable points of contention surrounding SB55. Some advocates argue that the increased regulatory burden may deter smaller organizations from operating, as the costs associated with compliance could be significant. Others express concern that the required audits, while promoting transparency, may not adequately take into account the unique challenges faced by smaller organizations. On the other hand, supporters of the bill believe that enhanced oversight is necessary to combat fraud and misuse of funds, arguing that the long-term benefits of a transparent system outweigh the initial hurdles faced by these organizations.

Companion Bills

No companion bills found.

Previously Filed As

NM SB240

Tax Exempt Organization Tax Audits

NM SB511

Audit Act Changes

NM SB216

Bankruptcy Exemptions

NM HB390

Racehorse Testing Fund Fines & Audits

NM SB192

Veteran Property Tax Exemptions

NM SB323

Horse Racing Group, Gaming & Audits

NM AB2244

Corporate securities: exemption from requirements.

NM AB283

Corporate securities: exemption from requirements.

NM SB206

Forestry Division Procurement Exemption

NM SB105

Repeal Taxes

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