46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO TAX RECEIPTS; PROVIDING THAT CERTAIN RECEIPTS, ORIGINALLY INTENDED FOR COUNTY HOSPITALS, BE DISTRIBUTED TO MUNICIPALITIES TO ENABLE THE MUNICIPALITIES TO OPERATE THE HOSPITALS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 7-1-6.13 NMSA 1978 (being Laws 1983, Chapter 211, Section 18, as amended) is amended to read:

"7-1-6.13. TRANSFER--REVENUES FROM COUNTY LOCAL OPTION GROSS RECEIPTS TAXES.--

A. Except as provided in Subsection B of this section a transfer pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each county for which the department is collecting a local option gross receipts tax imposed by that county in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the net receipts attributable to the local option gross receipts tax imposed by that county, less any deduction for administrative cost determined and made by the department pursuant to the provisions of the act authorizing imposition by that county of the local option gross receipts tax and any additional administrative fee withheld pursuant to Subsection C of Section [1 of this 1997 act] 7-1-6.41 NMSA 1978.

B. In lieu of a distribution pursuant to Subsection A of this section to a class B county with a population, as shown in the last federal decennial census, of more than twenty-five thousand and a net taxable value in the 2002 property tax year of less than two hundred million dollars ($200,000,000), the department shall make a distribution of the following amounts to the largest municipality in that county for the purpose of maintaining and operating a hospital:

(1) amounts attributable to the second one-eighth percent increment of the local option gross receipts tax; and

(2) amounts attributable to the special county hospital gross receipts tax."

Section 2. Section 7-20C-6 NMSA 1978 (being Laws 1991, Chapter 176, Section 6, as amended) is amended to read:

"7-20C-6. COLLECTION BY DEPARTMENT--TRANSFER OF PROCEEDS--DEDUCTIONS.--

A. The department shall collect the local hospital gross receipts tax in the same manner and at the same time it collects the state gross receipts tax.

B. The department shall withhold an administrative fee pursuant to Section [1 of this 1997 act] 7-1-6.41 NMSA 1978. Except as provided in Subsection C of this section, the department shall transfer to each county for which it is collecting such tax the amount of the tax collected less the administrative fee withheld and less any disbursements for tax credits, refunds and the payment of interest applicable to the tax. Transfer of the tax to a county shall be made within the month following the month in which the tax is collected.

C. In lieu of a transfer pursuant to Subsection B of this section to a class B county with a population, as shown in the last federal decennial census, of more than twenty-five thousand and a net taxable value in the 2002 property tax year of less than two hundred million dollars ($200,000,000), the department shall make the transfer to the largest municipality in that county for the purpose of maintaining and operating a hospital."

Section 3. Section 7-24B-3 NMSA 1978 (being Laws 1987, Chapter 45, Section 12) is amended to read:

"7-24B-3. USE OF PROCEEDS.--

A. Except as provided in Subsection B of this section, the proceeds of the special county hospital gasoline tax shall be used for current operations and maintenance of a hospital owned and operated by the county or operated and maintained by another party pursuant to a lease with the county and the use of these proceeds shall be for the care and maintenance of sick and indigent persons and shall be an expenditure for a public purpose.

B. In the case of a class B county with a population, as shown in the last federal decennial census, of more than twenty-five thousand and a net taxable value in the 2002 property tax year of less than two hundred million dollars ($200,000,000), the proceeds from the special county hospital gasoline tax shall not be used by the county but shall be transferred to and used by the largest municipality in that county for current operation and maintenance of a hospital."

Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2003.