HOUSE BILL 1297

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Ben Lujan

AN ACT

RELATING TO TAXATION; AUTHORIZING A CLASS H COUNTY TO IMPOSE THE COUNTY HEALTH CARE GROSS RECEIPTS TAX FOR CERTAIN HOSPITAL PURPOSES.

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

     Section 1. Section 7-20E-18 NMSA 1978 (being Laws 1991, Chapter 212, Section 7, as amended) is amended to read:

     "7-20E-18. COUNTY HEALTH CARE GROSS RECEIPTS TAX--AUTHORITY TO IMPOSE RATE.--

          A. The majority of the members of the governing body of any county, other than a class H county, may enact an ordinance imposing an excise tax at a rate of one-sixteenth percent of the gross receipts of any person engaging in business in the county for the privilege of engaging in business in the county. Any ordinance imposing an excise tax pursuant to this section shall not be subject to a referendum. The governing body of a county shall, at the time of enacting an ordinance imposing the tax, dedicate the revenue to the county-supported medicaid fund. This tax is to be referred to as the "county health care gross receipts tax".

          B. In addition to the imposition of the county health care gross receipts tax authorized by Subsection A of this section, the majority of the members of the governing body of a county having a population of more than five hundred thousand persons according to the most recent federal decennial census may enact an ordinance imposing an additional one-sixteenth percent increment of county health care gross receipts tax; provided that the imposition of the additional increment shall be for a period that ends no later than June 30, 2009. The governing body of the county shall, at the time of enacting an ordinance imposing the additional increment of county health care gross receipts tax, dedicate the revenue to the support of indigent patients.

          C. The majority of the members of the governing body of a class H county shall enact an ordinance imposing a one-eighth percent increment of county health care gross receipts tax in response to the windfall increase in gross receipts tax revenue that has occurred as a result of the reorganization of the department of energy national laboratory. The governing body of the county shall, at the time of enacting an ordinance imposing the increment of county health care gross receipts tax, dedicate the revenue for distribution to nonprofit hospitals located within a fifty-mile radius of the class H county to be used for the support of indigent patients, reimbursement for uncompensated care or contributions to the sole community provider fund for the benefit of those hospitals.

          [C.] D. Any ordinance enacted pursuant to the provisions of Subsection A, [or] B or C of this section shall include an effective date of either July 1 or January 1 in accordance with the provisions of the County Local Option Gross Receipts Taxes Act."

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