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F I S C A L I M P A C T R E P O R T

SPONSOR:	Luna		DATE TYPED:	2/7/02		HB	250
SHORT TITLE:		Annexation by Resolution				SB
					ANALYST:		J. Sandoval

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY02	FY03	FY02	FY03
	NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC files

Responses Received From

Taxation and Revenue Department

State Land Office

No Response

The Department of Finance and Administration

SUMMARY

Synopsis of Bill

House Bill 250 allows counties to annex land from another county if there is no property subject to any state or local taxation within the portion of a county being proposed for annexation. This stipulation allowing counties to annex land is in addition to current statute and does not delete any other statutory requirements.

Significant Issues

Currently land may be annexed if there are no qualified electors residing within the portion of a county being proposed for annexation and both counties agree to the annexation by resolution.

FISCAL IMPLICATIONS

According to the Taxation and Revenue Department, “If the property is owned by the federal government, it sometimes qualifies for payments in lieu of taxes (PILT), in which case the PILT funds would transfer from the county from which the property is annexed to the county doing the annexing. Other than this effect, no fiscal impacts on state or local revenue sources would result from enactment of the proposed measure -- unless the property transferred became taxable at some date after the transfer. In any case, fiscal impacts associated with the measure are likely to be small.”

F I S C A L I M P A C T R E P O R T

SOURCES OF INFORMATION

LFC files

Responses Received From

Taxation and Revenue Department

JFS/njw