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F I S C A L I M P A C T R E P O R T
SPONSOR HGUAC
ORIGINAL DATE
LAST UPDATED
1/30/06
2/14/06 HB CS/274/aSFC
SHORT TITLE Hospital Funding Mill Levy & Gross Receipts
SB
ANALYST Schardin/Francis
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
FY08
$5,468.8
11,375.0 Recurring Bernalillo
County
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Taxation and Revenue Department (TRD)
Department of Finance and Administration (DFA)
SUMMARY
Synopsis of Amendment
The Senate Finance Committee amended House Government and Urban Affairs substitute for
House Bill 274 to disallow any additional increment after June 30, 2009. This provision has no
impact on the reported fiscal impact though the impact in FY10 and subsequent years will be
zero.
Synopsis of Bill
The House Government and Urban Affairs Committee substitute for House Bill 274 addresses
funding of the Bernalillo County hospital at UNM. It would allow the governing body of Berna-
lillo County to impose an additional 1/16 percent increment of the county health care gross re-
ceipts tax. Currently, all counties are allowed to impose a 1/16 percent county health care gross
receipts tax. Revenue from this additional 1/16 percent increment would be dedicated to the sup-
port of indigent patients.
The effective date of these provisions is July 1, 2006.
pg_0002
CS/House Bill 274/aSFC Page
2
FISCAL IMPLICATIONS
The new 1/16 percent county health care gross receipts tax is expected to generate revenue of
$10.9 million, based on an estimated county tax base of about $17.5 billion in FY07 ($17.5 bil-
lion X 1/16%). However, Bernalillo County could not impose the tax until January 1, 2007, so
the FY07 impact is for half of a year. The tax base is expected to grow by 4 percent per year.
Bernalillo County would be required to dedicate this revenue to health care support of indigent
patients.
SIGNIFICANT ISSUES
DFA notes that the UNM regents conducted a statewide summit to discuss alternatives for fund-
ing the UNM Health Sciences Center. This summit found that the Health Science Center budget
for uncompensated care of $131.3 million was $44.9 million short of need.
ADMINISTRATIVE IMPLICATIONS
TRD reports that this bill would have a minimal administrative impact.
OTHER SUBSTANTIVE ISSUES
Although the UNM Health Sciences Center affected by House Bill 274 is utilized by persons
who live all over New Mexico, the entire tax burden of operating and maintaining the facility is
placed on those who live in Bernalillo County.
SS/mt:yr:nt