Master FIR (1988)

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F I S C A L I M P A C T R E P O R T

SPONSOR:	Wilson		DATE TYPED:	3-5-99		HB
SHORT TITLE:		Cigarette Tax Distributions				SB	623
					ANALYST:		Taylor

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY99	FY2000	Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
nfi	nfi	$ 1,300.0	Recurring	Medical Trust Fund
nfi	nfi	$ (1,300.0)	Recurring	NMFA

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to SB-648

SOURCES OF INFORMATION

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

Senate Bill 623 amends provisions governing the distribution of cigarette tax revenues. It requires that the distribution made to the New Mexico Finance Authority be redirected to the University of New Mexico school of medicine medical trust fund once the NMFA certifies that all bond obligations to pay for the cancer center are discharged.

FISCAL IMPLICATIONS

The Taxation and Revenue Department estimates that the proposed changes in distribution would send $1.3 million to the University of New Mexico school of medicine medical trust fund. The New Mexico Finance authority would lose $1.3 million. TRD does not report a date for when the transfer would happen, but the NMFA reports that cancer center bonds will be paid off in FY 2006.

ADMINISTRATIVE IMPLICATIONS

TRD reported that the bill has no significant administrative implications.

OTHER SUBSTANTIVE ISSUES

Senate Bill 653 was amended so that if the proposed cigarette tax increase is implemented most of the additional revenue would accrue to the cancer center.

The NMFA notes that the original legislation that created a cigarette tax distribution to the NMFA was not just for the purposes of the cancer center, but for capital needs in general.

BT/gm