Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are used for other purposes.
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F I S C A L I M P A C T R E P O R T
SPONSOR Campos
DATE TYPED 3/9/05
HB
SHORT TITLE Municipality Business License Fee Increases
SB 536/aSFC
ANALYST Hadwiger
APPROPRIATION
(in $000s)
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Finance and Administration (DFA)
Economic Development Department (EDD)
SUMMARY
Synopsis of SFC Amendment
The Senate Finance Committee Amendment would increase the maximum business registration
fee that a municipality may impose on each place of business within the municipality to $50.00
in calendar years 2006 and 2007 and no more than $75.00 in calendar year 2008 and subsequent
calendar years.
Synopsis of Original Bill
Senate Bill 536 would increase the maximum business registration fee that a municipality may
impose on each place of business within the municipality from $35.00 per year to $100.00 per
year. The bill would also allow municipalities to permit a business to pay its registration fees for
more than one year at a time.
Significant Issues
This bill would give local governments greater flexibility when setting business registration fees.
DFA indicates this statute was last amended and the fee revised in the 1988 legislative session.
pg_0002
Senate Bill 536/aSFC -- Page 2
FISCAL IMPLICATIONS
There would be no fiscal impact on the State. Municipal revenues would increase to the extent
that their governing bodies adopt ordinances increasing the fee and to the extent that businesses
pay the fee.
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