0001|                        SENATE BILL 774
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0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003|     1996
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0004|                         INTRODUCED BY
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0005|                      TIMOTHY Z. JENNINGS
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0006|     
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0007|                                
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0008|     
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0009|     
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0010|     
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0011|                             AN ACT
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0012|     RELATING TO TAXATION; INCREASING THE GROSS RECEIPTS TAX FOR THE
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0013|     PURPOSE OF LEVERAGING IN-STATE TAX REVENUE TO BETTER ADDRESS THE
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0014|     HEALTH CARE NEEDS OF THE STATE; CREATING THE STATE MEDICAID
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0015|     PROGRAM FUND; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978;
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0016|     DECLARING AN EMERGENCY.
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0017|     
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0018|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019|       Section 1.  A new section of the Tax Administration Act is
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0020|     enacted to read:
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0021|       "[<u>NEW MATERIAL</u>]  DISTRIBUTION--STATE MEDICAID PROGRAM
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0022|     FUND FROM GROSS RECEIPTS TAX.--A distribution pursuant to
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0023|     Section
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0024|     7-1-6.1 NMSA 1978 shall be made to the state medicaid program
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0025|     fund in an amount equal to four and seventy-six hundredths
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0001|     percent of the net receipts attributable to the gross receipts
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0002|     tax, exclusive of penalties or interest, collected pursuant to
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0003|     the Gross Receipts and Compensating Tax Act."
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0004|       Section 2.  [<u>NEW MATERIAL</u>]  STATE MEDICAID PROGRAM FUND
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0005|     CREATED--PURPOSE.--
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0006|            A.  There is created in the state treasury the "state
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0007|     medicaid program fund".  The fund shall be invested by the state
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0008|     treasurer as other state funds are invested.  Income earned from
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0009|     investment of the fund shall be credited to the state medicaid
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0010|     program fund.  The fund shall not revert in any fiscal year.
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0011|            B.  The purpose of the state medicaid program fund is
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0012|     to leverage in-state tax revenues to better address the state's
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0013|     health care needs.  The state medicaid program fund will be used
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0014|     to accomplish this purpose by using in-state tax revenues to
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0015|     support the state medicaid program and provide more access to
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0016|     health care by maximizing the use of existing in-state revenues
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0017|     and developing effective ways of drawing upon potential federal
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0018|     revenue sources.
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0019|       Section 3.  Section 7-9-4 NMSA 1978 (being Laws 1966,
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0020|     Chapter 47, Section 4, as amended) is amended to read:
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0021|       "7-9-4.  IMPOSITION AND RATE OF TAX--DENOMINATION AS "GROSS
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0022|     RECEIPTS TAX".--
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0023|            A.  For the privilege of engaging in business, an
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0024|     excise tax equal to five <u>and one-fourth</u> percent of gross
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0025|     receipts is imposed on any person engaging in business in New
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0001|     Mexico.
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0002|            B.  The tax imposed by this section shall be referred
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0003|     to as the "gross receipts tax"."
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0004|       Section 4.  EFFECTIVE DATE.--The effective date of the
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0005|     provisions of this act is July 1, 1996.
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0006|       Section 5.  EMERGENCY.--It is necessary for the public
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0007|     peace, health and safety that this act take effect immediately.
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0008|                                    
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0009|   
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0010|                    FORTY-SECOND LEGISLATURE
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0011|                      SECOND SESSION, 1996
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0012|   
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0013|   
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0014|                                              JANUARY 31, 1996
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0015|   
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0016|   Mr. President:
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0017|   
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0018|     Your COMMITTEES' COMMITTEE, to whom has been referred
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0019|   
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0020|                           SENATE BILL 774
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0021|   
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0022|   has had it under consideration and finds same to be GERMANE, PURSUANT
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0023|   TO CONSTITUTIONAL PROVISIONS, and thence referred to the WAYS AND
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0024|   MEANS COMMITTEE.
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0025|   
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0001|                              Respectfully submitted,
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0002|   
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0003|   
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0004|   
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0005|   
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0006|                              __________________________________
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0007|                              SENATOR MANNY M. ARAGON, Chairman 
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0008|   
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0009|   
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0010|   
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0011|   Adopted_______________________ Not Adopted_______________________
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0012|             (Chief Clerk)                        (Chief Clerk)
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0013|   
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0014|   
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0015|                     Date ________________________
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0016|   
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0017|   
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0018|   
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0019|   S0774CC1
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