NOTE: As provided in LFC policy, this report is
intended only for use by the standing finance committees of the
legislature. The Legislative Finance Committee does not assume
responsibility for the accuracy of the information in this report when used for
other purposes.
The most recent FIR
version (in HTML & Adobe PDF formats) is available on the Legislative
Website. The Adobe PDF version includes
all attachments, whereas the HTML version does not. Previously issued FIRs and attachments may be obtained from the
LFC in Suite 101 of the State Capitol Building North.
|
SPONSOR: |
Madalena |
DATE TYPED: |
02/11/03 |
HB |
58/aHGUAC/aHTRC |
||
|
SHORT TITLE: |
County Taxes Imposition |
SB |
|
||||
|
|
ANALYST: |
Gilbert |
|||||
REVENUE
|
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
|
FY03 |
FY04 |
|
|
|
|
|
$0.1
See Narrative |
$0.1
See Narrative |
Recurring |
County
Funds |
(Parenthesis ( ) Indicate Revenue Decreases)
LFC Files
Response Received
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis
of HTRC Amendment
The House Taxation and Revenue Committee
amendment to House Bill 58 makes a technical correction to page 3, line 20.
The following language was added to page 3,
line21, to clarify what sector of the voting public is eligible to vote in
elections relating to imposition of an emergency communications and emergency
medical services tax:
In the case of an ordinance imposing an increment of
the countywide emergency communications and emergency medical services tax, the
election shall be conducted countywide.
In the case of an ordinance imposing the county area emergency communications
and emergency medical services tax, the election shall be conducted only in the
county area.
Synopsis
of HGUAC Amendment
The House Government and Urban Affairs Committee
amendment to House Bill 58 simply strikes the words “in the county” from page
3, line 20 and adds commas to clarify the language in this bill.
Synopsis
of Original Bill
House Bill 58 amends NMSA 1978, § 7-20E-22, to provide counties the option to impose a county emergency communications and emergency medical services tax on a countywide basis, or only in the county areas outside of municipal boundaries. Emergency communications centers and county operated emergency medical services are essential safety-net services that are maintained to deal with routine and emergency responses.
Significant
Issues
This bill authorizes the county emergency
communications and emergency medical services tax to be imposed in one or more
increments of one-sixteenth percent, not to exceed an aggregate rate of
one-fourth percent and shall be imposed for a period of not more than ten years
from the effective date of such ordinance.
Subsequent ordinances, for periods of not more than ten years, may be
enacted providing that each ordinance meets the requirements of the county and
local option Gross Receipts Tax Act. Therefore, several counties may not be
eligible to impose this tax.
Under present law, the governing body of an
eligible county may impose a local option gross receipts tax to fund the
operation of an emergency communications center and/or emergency medical
services. Imposition of the tax is
subject to voter approval. The tax may
be imposed countywide, in one or more increments of one-sixteenth of one
percent (.0625%), not to exceed a total rate of one-quarter of one percent
(0.25%). Eligible counties are those
that operate, or are served by a qualified “public safety answering
point.” The local government division
of the Department of Finance and Administration is responsible for determining
whether a county has an eligible service.
This proposal gives counties the option to
restrict imposition of the tax to unincorporated areas of the county only.
According to the Taxation and Revenue Department
(TRD), fiscal impacts will depend on which counties enact the county-area
tax. See the table below for an
illustration of the additional revenues qualifying counties could have raised
in FY 2002 at various increments.
|
Potential Revenue from
County-Area Emergency Communications and Emergency Services Tax |
|||||
|
(Illustration at Fiscal
Year 2002 Levels) |
|||||
|
|
|
|
|
|
|
|
|
Fiscal Year 2002 |
Tax Increment |
|||
|
County Area |
Taxable Gross Receipts |
0.0625% |
0.1250% |
0.1875% |
0.2500% |
|
Bernalillo |
2,006,439,195 |
1,254,024 |
2,508,049 |
3,762,073 |
5,016,098 |
|
Catron |
15,541,620 |
9,714 |
19,427 |
29,141 |
38,854 |
|
Chaves |
Not Eligible |
Not Eligible |
Not Eligible |
Not Eligible |
Not Eligible |
|
Cibola |
Not Eligible |
Not Eligible |
Not Eligible |
Not Eligible |
Not Eligible |
|
Colfax |
62,177,085 |
38,861 |
77,721 |
116,582 |
155,443 |
|
Curry |
83,042,878 |
51,902 |
103,804 |
155,705 |
207,607 |
|
DeBaca |
8,331,668 |
5,207 |
10,415 |
15,622 |
20,829 |
|
Dona Ana |
406,085,467 |
253,803 |
507,607 |
761,410 |
1,015,214 |
|
Eddy |
Not Eligible
|
Not Eligible |
Not Eligible |
Not Eligible |
Not Eligible |
|
Grant |
114,158,201 |
71,349 |
142,698 |
214,047 |
285,396 |
|
Guadalupe |
15,963,412 |
9,977 |
19,954 |
29,931 |
39,909 |
|
Harding |
3,592,928 |
2,246 |
4,491 |
6,737 |
8,982 |
|
Hidalgo |
15,848,568 |
9,905 |
19,811 |
29,716 |
39,621 |
|
Lea |
Not Eligible |
Not Eligible |
Not Eligible |
Not Eligible |
Not Eligible |
|
Lincoln |
Not Eligible |
Not Eligible |
Not Eligible |
Not Eligible |
Not Eligible |
|
Los Alamos* |
N/A |
N/A |
N/A |
N/A |
N/A |
|
Luna |
43,554,342 |
27,221 |
54,443 |
81,664 |
108,886 |
|
McKinley |
285,180,667 |
178,238 |
356,476 |
534,714 |
712,952 |
|
Mora |
22,058,800 |
13,787 |
27,574 |
41,360 |
55,147 |
|
Otero |
Not Eligible |
Not Eligible |
Not Eligible |
Not Eligible |
Not Eligible |
|
Quay |
18,880,834 |
11,801 |
23,601 |
35,402 |
47,202 |
|
Rio Arriba |
191,633,398 |
119,771 |
239,542 |
359,313 |
479,083 |
|
Roosevelt |
39,046,229 |
24,404 |
48,808 |
73,212 |
97,616 |
|
Sandoval |
Not Eligible |
Not Eligible |
Not Eligible |
Not Eligible |
Not Eligible |
|
San Juan |
991,844,954 |
619,903 |
1,239,806 |
1,859,709 |
2,479,612 |
|
San Miguel |
53,135,668 |
33,210 |
66,420 |
99,629 |
132,839 |
|
Santa Fe |
561,298,384 |
350,811 |
701,623 |
1,052,434 |
1,403,246 |
|
Sierra |
20,284,459 |
12,678 |
25,356 |
38,033 |
50,711 |
|
Socorro |
32,711,927 |
20,445 |
40,890 |
61,335 |
81,780 |
|
Taos |
129,345,235 |
80,841 |
161,682 |
242,522 |
323,363 |
|
Torrance |
46,020,686 |
28,763 |
57,526 |
86,289 |
115,052 |
|
Union |
26,036,844 |
16,273 |
32,546 |
48,819 |
65,092 |
|
Valencia |
102,195,305 |
63,872 |
127,744 |
191,616 |
255,488 |
|
|
|
|
|
|
|
|
All Eligible Counties |
5,294,408,754 |
3,309,005 |
6,618,011 |
9,927,016 |
13,236,022 |
*The
entire county of Los Alamos is incorporated.
The operational
funding source provided by the state is the annual EMS Fund Act distribution
that is administered by a formula and is estimated to provide approximately 20%
of EMS operational needs.
Creation or expansion
of local option taxes of this sort may inhibit the ability of the state to
raise revenue from the gross receipts tax, assuming there is a maximum tax rate
the public will tolerate.
What is the current
condition of county operated emergency communications and emergency medical
services?
How large of an
imposition is this bill on the taxpayers of New Mexico?
RLG/yr