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F I S C A L I M P A C T R E P O R T





SPONSOR: Smith DATE TYPED: 02/05/00 HB
SHORT TITLE: Special County Hospital Gross Receipts Tax SB 310
ANALYST: Eaton


REVENUE



Estimated Revenue
Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY00 FY01
$ 223.1 Recurring Luna County Ambulance /Luna County Clinic
$ 6.9 Recurring TRD Admin. Fee



(Parenthesis ( ) Indicate Revenue Decreases)



SOURCES OF INFORMATION



Taxation and Revenue Department (TRD)



SUMMARY



Synopsis of Bill



This bill updates the law to continue to allow Luna County to impose a "Special County Hospital Gross Receipts Tax" at a rate of one-eighth of one percent. The use of the tax revenue is revised (for Luna County only) to provide "for county ambulance transport costs or for operation of a rural health clinic".



Significant Issues



An imposition of this tax requires approval of the voters in the county, and the tax may be imposed for no more than 5 years before it must be reauthorized by the voters.



FISCAL IMPLICATIONS



The estimates impact of this bill may increase revenue by $223.3 for Luna County.



The fiscal impact assumes a July 1, 2000 effective date for the tax imposition, which would require passage under an Emergency Clause and that an election be held almost immediately. The taxation and revenue department requires at least 90 days notice in advance to implement a newly-imposed tax or tax rate change, so a July 1, 2000 effective date would require voter approval and notification to the department during March, 2000. During the first fiscal year the county would receive accrued revenue attributable to 11 months, due to the one month lag for tax return filing.



A January, 2001 imposition would provide 5 months of accrued revenue during fiscal year 2000-2001, or about $101.5 thousand for the county (after retention of administrative fees).



ADMINISTRATIVE IMPLICATIONS



A small impact on the TRD would result from setting-up the new tax program and revenue distribution procedures.



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