0001| AN ACT | 0002| RELATING TO TAXATION; AMENDING THE LOCAL HOSPITAL GROSS RECEIPTS TAX | 0003| ACT TO AUTHORIZE IMPOSITION OF THE TAX FOR A HOSPITAL OR HEALTH CLINIC | 0004| IN AN ADDITIONAL COUNTY; AMENDING SECTIONS OF THE NMSA 1978. | 0005| | 0006| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0007| Section 1. Section 7-20C-2 NMSA 1978 (being Laws 1991, Chapter | 0008| 176, Section 2, as amended) is amended to read: | 0009| "7-20C-2. DEFINITIONS.--As used in the Local Hospital Gross | 0010| Receipts Tax Act: | 0011| A. "county" means: | 0012| (1) a class B county having a population of less than | 0013| twenty-five thousand according to the most recent federal decennial | 0014| census and having a net taxable value for rate-setting purposes for | 0015| the 1990 property tax year or any subsequent year of more than two | 0016| hundred fifty million dollars ($250,000,000); | 0017| (2) a class B county having a population of less than | 0018| forty-seven thousand but more than forty-four thousand according to | 0019| the 1990 federal decennial census and having a net taxable value for | 0020| rate-setting purposes for the 1992 property tax year of more than | 0021| three hundred million dollars ($300,000,000) but less than six hundred | 0022| million dollars ($600,000,000); | 0023| (3) a class B county having a population of less than | 0024| ten thousand according to the most recent federal decennial census and | 0025| having a net taxable value for rate-setting purposes for the 1990 | 0001| property tax year or any subsequent year of more than one hundred | 0002| million dollars ($100,000,000); | 0003| (4) a class B county having a population of less than | 0004| twenty-five thousand according to the 1990 federal decennial census | 0005| and having a net taxable value for rate-setting purposes for the 1993 | 0006| property tax year of more than ninety-one million dollars | 0007| ($91,000,000) but less than one hundred twenty-five million dollars | 0008| ($125,000,000); or | 0009| (5) a class B county having a population of more than | 0010| seventeen thousand but less than twenty thousand according to the 1990 | 0011| federal decennial census and having a net taxable value for rate- | 0012| setting purposes for the 1993 property tax year of more than one | 0013| hundred fifty-three million dollars ($153,000,000) but less than one | 0014| hundred fifty-six million dollars ($156,000,000); and | 0015| (6) a class B county having a population of more than | 0016| fifteen thousand according to the 1990 federal decennial census and | 0017| having a net taxable value for rate-setting purposes for the 1996 | 0018| taxable year of more than one hundred fifty million dollars | 0019| ($150,000,000) but less than one hundred seventy-five million dollars | 0020| ($175,000,000); | 0021| B. "department" means the taxation and revenue department, | 0022| the secretary of taxation and revenue or any employee of the | 0023| department exercising authority lawfully delegated to that employee by | 0024| the secretary; | 0025| C. "governing body" means the board of county commissioners | 0001| of a county; | 0002| D. "health care facilities contract" means an agreement | 0003| between a hospital or health clinic not owned by the county and a | 0004| county imposing the tax authorized by the Local Hospital Gross | 0005| Receipts Tax Act that obligates the county to pay to the hospital | 0006| revenue generated by the tax authorized in that act as consideration | 0007| for the agreement by the hospital or health clinic to use the funds | 0008| only for nonsectarian purposes and to make health care services | 0009| available for the benefit of the county; | 0010| E. "hospital facility revenues" means all or a portion of | 0011| the revenues derived from a lease of a hospital facility acquired, | 0012| constructed or equipped pursuant to and operated in accordance with | 0013| the Local Hospital Gross Receipts Tax Act; | 0014| F. "local hospital gross receipts tax" means the tax | 0015| authorized to be imposed under the Local Hospital Gross Receipts Tax | 0016| Act; | 0017| G. "person" means an individual or any other legal entity; | 0018| and | 0019| H. "state gross receipts tax" means the gross receipts tax | 0020| imposed under the Gross Receipts and Compensating Tax Act." | 0021| Section 2. Section 7-20C-3 NMSA 1978 (being Laws 1991, Chapter | 0022| 176, Section 3, as amended) is amended to read: | 0023| "7-20C-3. LOCAL HOSPITAL GROSS RECEIPTS TAX--AUTHORITY TO | 0024| IMPOSE--ORDINANCE REQUIREMENTS.-- | 0025| A. A majority of the members elected to the governing body | 0001| of a county may enact an ordinance imposing an excise tax on any | 0002| person engaging in business in the county for the privilege of | 0003| engaging in business. This tax is to be referred to as the "local | 0004| hospital gross receipts tax". The rate of the tax shall be: | 0005| (1) one-half of one percent of the gross | 0006| receipts of the person engaging in business if the tax is initially | 0007| imposed before January 1, 1993; | 0008| (2) one-eighth of one percent of the gross | 0009| receipts of the person engaging in business if the tax is initially | 0010| imposed after January 1, 1993; and | 0011| (3) a rate not to exceed one-half of one percent | 0012| of the gross receipts of the person engaging in business if the tax is | 0013| imposed after July 1, 1996 in a county described in Paragraph (4) or | 0014| (6) of Subsection A of Section 7-20C-2 NMSA 1978; provided, the tax | 0015| may be imposed in any number of increments of one-eighth percent not | 0016| to exceed an aggregate rate of one-half of one percent of gross | 0017| receipts. | 0018| B. The local hospital gross receipts tax imposed initially | 0019| before January 1, 1993 shall be imposed only once for the period | 0020| necessary for payment of the principal and interest on revenue bonds | 0021| issued to accomplish the purpose for which the revenue is dedicated, | 0022| but the period shall not exceed ten years from the effective date of | 0023| the ordinance imposing the tax. The local hospital gross receipts tax | 0024| imposed after July 1, 1996 in a county described in Paragraph (4) of | 0025| Subsection A of Section 7-20C-2 NMSA 1978 shall be imposed only once | 0001| for the period necessary for payment of the principal and interest on | 0002| revenue bonds issued to accomplish the purpose for which the revenue | 0003| is dedicated, but the period shall not exceed twenty years from the | 0004| effective date of the ordinance imposing the tax. | 0005| C. No local hospital gross receipts tax authorized in | 0006| Subsection A of this section shall be imposed initially after January | 0007| 1, 1993 unless: | 0008| (1) in a county described in Paragraph (2) of | 0009| Subsection A of Section 7-20C-2 NMSA 1978, the voters of the county | 0010| have approved the issuance of general obligation bonds of the county | 0011| sufficient to pay at least one-half of the costs of the county | 0012| hospital facility or county twenty-four hour urgent care or emergency | 0013| facility for which the local hospital gross receipts tax revenues are | 0014| dedicated, including the costs of all acquisition, renovation and | 0015| equipping of the facility; or | 0016| (2) in a county described in Paragraph (3) or (5) of | 0017| Subsection A of Section 7-20C-2 NMSA 1978, the county will not have in | 0018| effect at the same time a county hospital emergency gross receipts tax | 0019| and the voters of the county have approved the imposition of a | 0020| property tax at a rate of one dollar ($1.00) on each one thousand | 0021| dollars ($1,000) of taxable value of property in the county for the | 0022| purpose of operation and maintenance of a hospital owned by the county | 0023| and operated and maintained either by the county or by another party | 0024| pursuant to a lease with the county. | 0025| D. The governing body of a county enacting an ordinance | 0001| imposing a local hospital gross receipts tax shall dedicate the | 0002| revenue from the tax as provided in this subsection. In any election | 0003| held, the ballot shall clearly state the purpose to which the revenue | 0004| will be dedicated and the revenue shall be used by the county for that | 0005| purpose. The revenues shall be dedicated as follows: | 0006| (1) prior to January 1, 1993, the governing body, at | 0007| the time of enacting an ordinance imposing the rate of the tax | 0008| authorized in Subsection A of this section, shall dedicate the revenue | 0009| for acquisition of land for and the design, construction, equipping | 0010| and furnishing of a county hospital facility to be operated by the | 0011| county or operated and maintained by another party pursuant to a lease | 0012| with the county; | 0013| (2) if the governing body of a county described in | 0014| Paragraph (2), (3) or (5) of Subsection A of Section 7-20C-2 NMSA 1978 | 0015| is enacting the ordinance imposing the tax after July 1, 1993, the | 0016| governing body shall dedicate the revenue for acquisition, renovation | 0017| and equipping of a building for a county hospital facility or a county | 0018| twenty-four hour urgent care or emergency facility or for operation | 0019| and maintenance of that facility, whether operated and maintained by | 0020| the county or by another party pursuant to a lease or management | 0021| contract with the county, for the period of time the tax is imposed | 0022| not to exceed ten years; | 0023| (3) if the governing body of a county described in | 0024| Paragraph (4) of Subsection A of Section 7-20C-2 NMSA 1978 is enacting | 0025| the ordinance imposing the tax after July 1, 1995, the governing body | 0001| shall dedicate the revenue for acquisition of land or buildings for | 0002| and the renovation, design, construction, equipping or furnishing of a | 0003| county hospital facility or health clinic to be operated by the county | 0004| or operated and maintained by another party pursuant to a lease or | 0005| management contract with the county; and | 0006| (4) if the governing body of a county described in | 0007| Paragraph (6) of Subsection A of Section 7-20C-2 NMSA 1978 is enacting | 0008| the ordinance imposing the tax after July 1, 1997, the governing body | 0009| shall dedicate the revenue for either or a combination of the | 0010| following: | 0011| (a) acquisition of land or buildings for and the | 0012| design, construction, renovation, equipping or furnishing of a | 0013| hospital facility or health clinic owned by the county or a hospital | 0014| or health clinic with whom the county has entered into a health care | 0015| facilities contract; or | 0016| (b) operations and maintenance of a hospital or | 0017| health clinic owned by the county or a hospital or health clinic with | 0018| whom the county has entered into a health care facilities contract. | 0019| E. The ordinance shall not go into effect until after an | 0020| election is held and a simple majority of the qualified electors of | 0021| the county voting in the election votes in favor of imposing the local | 0022| hospital gross receipts tax and, in the case of a county described in | 0023| Paragraph (3) or (5) of Subsection A of Section 7-20C-2 NMSA 1978, | 0024| also votes in favor of a property tax at a rate of one dollar ($1.00) | 0025| for each one thousand dollars ($1,000) of taxable value of property in | 0001| the county. The governing body shall adopt a resolution calling for | 0002| an election within seventy-five days of the date the ordinance is | 0003| adopted on the question of imposing the tax. The question may be | 0004| submitted to the qualified electors and voted upon as a separate | 0005| question in a general election or in any special election called for | 0006| that purpose by the governing body. A special election upon the | 0007| question shall be called, held, conducted and canvassed in | 0008| substantially the same manner as provided by law for general | 0009| elections. If the question of imposing a local hospital gross | 0010| receipts tax fails or if the question of imposing both a local | 0011| hospital gross receipts tax and a property tax fails, the governing | 0012| body shall not again propose a local hospital gross receipts tax for a | 0013| period of one year after the election. A certified copy of any | 0014| ordinance imposing a local hospital gross receipts tax shall be mailed | 0015| to the department within five days after the ordinance is adopted in | 0016| any election called for that purpose. | 0017| F. Any ordinance enacted pursuant to the provisions of | 0018| Subsection A of this section shall include an effective date of either | 0019| July 1 or January 1, whichever date occurs first after the expiration | 0020| of at least three months from the date the ordinance is approved by | 0021| the electorate. | 0022| G. Any ordinance repealed under the provisions of the Local | 0023| Hospital Gross Receipts Tax Act shall be repealed effective on either | 0024| July 1 or January 1. | 0025| H. As used in this section, "taxable value of property" | 0001| means the sum of: | 0002| (1) the net taxable value, as that term is defined in | 0003| the Property Tax Code, of property subject to taxation under the | 0004| Property Tax Code; | 0005| (2) the assessed value of products, as those terms | 0006| are defined in the Oil and Gas Ad Valorem Production Tax Act; | 0007| (3) the assessed value of equipment, as those terms | 0008| are defined in the Oil and Gas Production Equipment Ad Valorem Tax | 0009| Act; and | 0010| (4) the taxable value of copper mineral property, as | 0011| those terms are defined in the Copper Production Ad Valorem Tax Act, | 0012| subject to taxation under the Copper Production Ad Valorem Tax Act." | 0013| Section 3. Section 7-20C-9 NMSA 1978 (being Laws 1991, Chapter | 0014| 176, Section 9, as amended) is amended to read: | 0015| "7-20C-9. LOCAL HOSPITAL REVENUE BONDS--AUTHORITY TO ISSUE-- | 0016| PLEDGE OF REVENUES.-- | 0017| A. A county, other than a county described in Paragraph (2) | 0018| of Subsection A of Section 7-20C-2 NMSA 1978, may issue local hospital | 0019| revenue bonds pursuant to the Local Hospital Gross Receipts Tax Act | 0020| for the purpose of acquiring land for and designing, constructing, | 0021| equipping and furnishing a county hospital facility or health clinic | 0022| to be operated by the county or by another party pursuant to a lease | 0023| or management contract with the county, or a hospital facility or | 0024| health clinic with whom the county has entered into a health care | 0025| facilities contract. | 0001| B. The county issuing the local hospital revenue bonds | 0002| pursuant to the Local Hospital Gross Receipts Tax Act shall pledge | 0003| irrevocably all of the net receipts derived from the imposition of the | 0004| local hospital gross receipts tax and may pledge irrevocably any | 0005| combination of hospital facility revenues and any other revenues as | 0006| necessary for the payment of principal and interest on the revenue | 0007| bonds." | 0008| Section 4. EFFECTIVE DATE.--The effective date of the | 0009| provisions of this act is July 1, 1997. |