Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are used for other purposes.
Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).
Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and
attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.
F I S C A L I M P A C T R E P O R T
SPONSOR Smith
ORIGINAL DATE
LAST UPDATED
1/30/06
HB
SHORT TITLE County Correctional Facility Bond Maturity
SB 299
ANALYST Schardin
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates HB361.
SOURCES OF INFORMATION
LFC Files
Responses Received From
New Mexico Association of Counties (NMAC)
Taxation and Revenue Department (TRD)
Department of Finance and Administration (DFA)
SUMMARY
Synopsis of Bill
Senate Bill 299 would extend the maximum maturity time for revenue bonds issued pursuant to
the County Correctional Facility Gross Receipts Tax Act from 10 to 25 years.
No effective date is specified, so assume 90 days following adjournment of the 2006 Session on
May 17, 2006.
SIGNIFICANT ISSUES
NMAC reports that normally bonds issued for capitol improvements are issued for as long as the
financed improvement is expected to last. Limiting the bond issuance to 10 years on facilities
that are designed to last much longer makes it expensive for counties to amortize the bond pro-
ceeds. Increasing the maximum bond maturity to 25 years will help counties by making debt ser-
vice payments more affordable.
pg_0002
Senate Bill 299 Page
2
DFA notes that while allowing bond maturities of up to 25 years will make debt service pay-
ments more affordable, it will also increase interest costs paid by counties.
The County Correctional Facility Gross Receipts Tax may be imposed in increments of 1/16 per-
cent up to 1/8 percent. Revenue from the tax must be used to operate, maintain, construct, or
purchase a judicial-correctional or county correctional facility or to pay debt service on revenue
bonds.
TRD reports that as of January 1, 2006 the following New Mexico counties have imposed the
tax: Cibola, Curry, Guadalupe, Harding, McKinley, Mora, Otero, Quay, Roosevelt, San Juan,
San Miguel, Santa Fe, Sierra, Socorro, Torrance, Union, and Valencia.
ADMINISTRATIVE IMPLICATIONS
TRD reports that Senate Bill 299 would create minimal administrative impacts. Forms, instruc-
tions and publications will be changed with existing resources.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Senate Bill 299 duplicates House Bill 361.
SS/yr