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F I S C A L I M P A C T R E P O R T
SPONSOR HJC
ORIGINAL DATE
LAST UPDATED
2/6/08
HB 145/HJCS
SHORT TITLE Sports & Recreation Facility Financing Act
SB
ANALYST Haug
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
New Mexico Municipal League (NMML)
SUMMARY
Synopsis of Bill
House Judiciary Committee Substitute for House Bill 145 House Bill 145, Relating to Taxation;
Creating the Sports and Recreation Facilities Financing Act, makes certain changes to allow
municipalities to finance sports and recreation facilities in their communities by way of a fee
approved by a referendum.
FISCAL IMPLICATIONS
House Judiciary Committee Substitute for House Bill 145 has no fiscal implication.
SIGNIFICANT ISSUES
The NNML states that House Judiciary Committee Substitute for House Bill 145 authorizes a
municipality with a population of between 1,000 and 1,100 located in a class B county with a
population of between 14,000 and 15,000 according to the last decennial census to impose a
sports and recreation facility fee; the fee must be imposed by ordinance and a referendum shall
be held regarding the question of imposition of the tax; the fee shall not exceed 2.4% of the
gross room charge for each day a lodging room is occupied; if the referendum fails the governing
body may not propose the fee again for a period of one year; revenue from the fee shall be
pg_0002
House Bill 145/HJCS – Page
2
dedicated for limited purposes related to the development of a sports and recreation facility
located within the qualified municipality.
The NMML notes that if passed, this tax would be added to the taxes currently imposed on
lodgers in the qualifying municipality.
GH/sec