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F I S C A L I M P A C T R E P O R T
SPONSOR Taylor, JG
ORIGINAL DATE
LAST UPDATED
2/23/07
HB
SHORT TITLE County Health Gross Receipts Time Period
SB 1099
ANALYST Schardin
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
FY09
See Narrative for
FY10 impact
Recurring Bernalillo
County
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates HB 1017, Conflicts with HB 1297.
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Health (DOH)
SUMMARY
Synopsis of Bill
Senate Bill 1099 amends Section 7-20E-18 NMSA 1978 so that counties with populations above
500 thousand (Bernalillo) will retain the option of imposing a second 1/16 percent increment of
the county health care gross receipts tax indefinitely. Currently, that county may only impose the
second 1/16 percent increment until June 30, 2009.
FISCAL IMPLICATIONS
Bernalillo County is the only county in New Mexico authorized to impose a second 1/16 percent
increment of the county health care gross receipts tax. LFC analysis of data provided by TRD
indicates that Bernalillo county’s taxable gross receipts base will be about $19.2 billion in FY10,
the first year that the increment would sunset under current law. An additional 1/16 percent
increment will increase Bernalillo county gross receipts tax collections by about $12,011.9
thousand in FY10.
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Senate Bill 1099 – Page
2
SIGNIFICANT ISSUES
The 2006 legislature amended the county health care gross receipts tax statute to allow counties
with populations over 500 thousand to impose an additional 1/16 percent gross receipts tax
increment. The Senate Finance Committee amendment to the 2006 bill (HB 274) inserted a
sunset clause so that the additional 1/16 percent increment could only be imposed until June 30,
2009.
Revenues collected from the first 1/16 percent increment of the county health care gross receipts
tax are restricted for deposit in the county-supported Medicaid fund, a non-reverting fund that is
appropriated to the human services department to support the Medicaid program. If a county
chooses not to impose a 1/16 percent county health care gross receipts tax, that county must
dedicate an amount equal to 1/16 percent of gross receipts to the county-supported Medicaid
fund.
Revenues collected due to Bernalillo County’s second 1/16 percent increment of the county
health care gross receipts tax must be used to support the health care costs of indigent patients.
The second increment is intended to support the Bernalillo County hospital, which is located at
UNM.
Under current law, New Mexico’s local governments are authorized to impose up to 4.6875
percent of local option gross receipts taxes (that figure excludes several additional local option
taxes that have been authorized for selected local governments). On average, a local option gross
receipts tax of about 1.6 percent is actually imposed by local governments statewide. Combined
with the state gross receipts tax of 5 percent, the statewide tax rate is therefore 6.6 percent.
ADMINISTRATIVE IMPLICATIONS
The bill will create minimal administrative impacts on TRD.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Senate Bill 1099 duplicates House Bill 1017.
Senate Bill 1099 conflicts with House Bill 1297, which amends the same section of statute to
allow Los Alamos County to impose a 1/8 percent county health care gross receipts tax.
SS/mt