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|SHORT TITLE:||Amend Small Cities Assistance Act||SB||253|
|$ (1,193.6)||Recurring||General Fund|
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates HB10 (Whitaker) Amend Small Cities Assistance Act
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
Synopsis of Bill:
The legislation would amend the Small Cities Assistance Act by categorizing cities into 2 two classes: less than 5,000 persons; and 5,001-10,000 persons.
Cities with less than 5,000 persons would be eligible to receive a minimum of $30,000 and a maximum of $50,000 from the assistance fund.
Cities with populations between 5,001 and 10,000 would be eligible to receive a minimum of $20,000 and a maximum of $35,000 from the assistance fund.
Presently, all cities with populations less than 10,000 persons are eligible to receive the same minimum and maximum of $15,000 and $30,000 respectively.
The Small Cities Assistance Fund distribution is financed from ten percent of the Compensating Tax receipts. Amounts not distributed revert to the general fund. TRD estimates a recurring negative impact on the general fund in the amount of approximately $1.2 million (Reversions) and a recurring positive impact on the Municipal General Funds for the same amount.
The FY99 distribution is calculated to be $2.16 million, to approximately 82 municipalities that qualify for distribution pursuant to Section 3-37A-2 and 3-37A-3, NMSA 1978.
Attached is a table provided by TRD, detailing the affected municipalities and the estimated effect of this proposed legislation.
SB102 (Altamirano) Small Cities Assistance Act - would amend the Small Cities Assistance Act by increasing the maximum limit a city of 10,000 or less persons may receive in assistance from $30,000 to $60,000.
HB72 (Wallace) Increase Small Cities Distribution -would amend the Small Cities Assistance Act by increasing the maximum limit a city of 10,000 or less persons may receive in assistance from $30,000 to $60,000.