SENATE BILL 100
50th legislature - STATE OF NEW MEXICO - second session, 2012
INTRODUCED BY
Lisa Curtis
AN ACT
RELATING TO TAXATION; REDUCING THE MILL LEVY TO PAY THE COST OF OPERATING AND MAINTAINING COUNTY HOSPITALS IN CERTAIN CLASS A COUNTIES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 4-48B-12 NMSA 1978 (being Laws 1981, Chapter 83, Section 12, as amended) is amended to read:
"4-48B-12. TAX LEVIES AUTHORIZED.--
A. Except as provided in Subsection F of this section, the county commissioners are authorized to impose a mill levy and collect annual assessments against the net taxable value of the property in a county to pay the cost of operating and maintaining county hospitals or to pay to contracting hospitals in accordance with a health care facilities contract and in class A counties to pay for the county's transfer to the county-supported medicaid fund pursuant to Section 27-10-4 NMSA 1978 as follows:
(1) in class A counties as defined in Section 4-44-1 NMSA 1978, the mill levy shall not exceed a rate of six dollars fifty cents ($6.50), or any lower maximum amount required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978 upon a mill levy imposed pursuant to this paragraph, on each one thousand dollars ($1,000) of net taxable value of property allocated to the county; however, if the county uses any portion not to exceed one dollar fifty cents ($1.50) of the rate authorized by this paragraph to meet the requirement of Section 27-10-4 NMSA 1978, the provisions of Section 7-37-7.1 NMSA 1978 do not apply to the portion of the rate necessary to produce the revenues required; provided that the portion of the rate does not exceed one dollar fifty cents ($1.50); and
(2) in other counties, the mill levy shall not exceed four dollars twenty-five cents ($4.25), or any lower maximum amount required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978 upon a mill levy imposed pursuant to this paragraph, on each one thousand dollars ($1,000) of net taxable value of property allocated to the county.
B. The mill levies provided in Paragraphs (1) and (2) of Subsection A of this section shall be made at the direction of the county commissioners, but only to the extent that the county commissioners deem it necessary to operate and maintain county hospitals, to pay the amounts required in the performance of any health care facilities contracts made pursuant to the Hospital Funding Act and to provide for a class A county's transfer to the county-supported medicaid fund pursuant to Section 27-10-4 NMSA 1978.
C. In the event that the mill levy provided for in Paragraph (1) of Subsection A of this section is not authorized by the electorate or the resulting mill levy proceeds are not remitted to the entity operating the hospital within a reasonable time period, any lease for operation of the hospital between a county and a state educational institution named in Article 12, Section 11 of the constitution of New Mexico may, at the option of the state educational institution, be terminated immediately. Except as provided in Subsection D of this section, in the event that the mill levy provided for in Paragraph (1) of Subsection A of this section is authorized, an amount not less than the amount that would be produced by a mill levy at the rate of four dollars ($4.00), or any lower amount that would be required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978 upon this rate, on each one thousand dollars ($1,000) of net taxable value of property allocated to the county shall be provided from the proceeds of the mill levy to the state educational institution operating the hospital for hospital purposes unless the institution determines that the amount is not necessary.
D. A class A county imposing the mill levy provided for in Paragraph (1) of Subsection A of this section may enter into a mutual agreement with a state educational institution named in Article 12, Section 11 of the constitution of New Mexico operating the hospital permitting the transfer to the county-supported medicaid fund by the county pursuant to Section 27-10-4 NMSA 1978 of not to exceed the amount that would be produced by a mill levy at a rate of one dollar fifty cents ($1.50) applied to the net taxable value of property allocated to the county for the prior property tax year and also not to exceed the amount that would be produced by imposition of the county health care gross receipts tax.
E. The distribution of the mill levy authorized at the rates specified in Subsection A of this section shall be made to county and contracting hospitals as authorized in the Hospital Funding Act.
F. A mill levy authorized by this section shall not be imposed or take effect after January 1, 2013 in a class A county having a population of more than five hundred thousand persons according to the most recent federal decennial census. A mill levy imposed and in effect prior to January 1, 2013 in such a county shall cease to have effect after December 31, 2012; provided, however, that amounts calculated as owed with respect to the 2012 property tax year shall remain in effect and shall be collected."
SECTION 2. A new section of the Hospital Funding Act is enacted to read:
"[NEW MATERIAL] TAX LEVY AUTHORIZED FOR CERTAIN CLASS A COUNTIES--ELECTION ON TAX LEVY.--
A. County commissioners of a class A county having a population of more than five hundred thousand persons according to the most recent federal decennial census are authorized to impose a mill levy and collect annual assessments against the net taxable value of the property in a county to pay the cost of operating and maintaining county hospitals or to pay to contracting hospitals in accordance with a health care facilities contract and, in class A counties, to pay for the county's transfer to the county-supported medicaid fund pursuant to Section 27-10-4 NMSA 1978. The mill levy shall not exceed a rate of sixty-five cents ($.65), or any lower maximum amount required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978 upon a mill levy imposed pursuant to this subsection, on each one thousand dollars ($1,000) of net taxable value of property in the county; however, if the county uses any portion of the rate authorized by this subsection to meet the requirement of Section 27-10-4 NMSA 1978, the provisions of Section 7-37-7.1 NMSA 1978 do not apply to the portion of the rate necessary to produce the revenues required.
B. The mill levies provided in Subsection A of this section shall be made at the direction of the county commissioners, but only to the extent that the county commissioners deem it necessary to operate and maintain county hospitals, to pay the amounts required in the performance of any health care facilities contracts made pursuant to the Hospital Funding Act and to provide for the class A county's transfer to the county-supported medicaid fund pursuant to Section 27-10-4 NMSA 1978.
C. In the event that the mill levy provided for in Subsection A of this section is not authorized by the electorate or the resulting mill levy proceeds are not remitted to the entity operating the hospital within a reasonable time period, any lease for operation of the hospital between a county and a state educational institution named in Article 12, Section 11 of the constitution of New Mexico may, at the option of the state educational institution, be terminated immediately. Except as provided in Subsection D of this section, in the event that the mill levy provided for in Subsection A of this section is authorized, an amount not less than the amount that would be produced by a mill levy that would be required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978 upon this rate on each one thousand dollars ($1,000) of net taxable value of property in the county shall be provided from the proceeds of the mill levy to the state educational institution operating the hospital for hospital purposes unless the institution determines that the amount is not necessary.
D. A class A county imposing the mill levy provided for in Subsection A of this section may enter into a mutual agreement with a state educational institution named in Article 12, Section 11 of the constitution of New Mexico operating the hospital permitting the transfer to the county-supported medicaid fund by the county pursuant to Section 27-10-4 NMSA 1978 of an amount not to exceed the amount that would be produced by a mill levy for the prior property tax year and also not to exceed the amount that would be produced by imposition of the county health care gross receipts tax.
E. The distribution of the mill levy authorized at the rates specified in Subsection A of this section shall be made to county and contracting hospitals as authorized in the Hospital Funding Act.
F. County commissioners of a class A county having a population of more than five hundred thousand persons according to the most recent federal decennial census shall submit to the qualified electors of the county the question of levying a tax not to exceed sixty-five cents ($.65) on each one thousand dollars ($1,000) of net taxable value of property in the county for a period of time of not less than four years nor more than eight years.
G. The question may be submitted to the electors and voted upon as a separate question at any general election.
H. In the event the mill levy submitted under Subsection F of this section is voted upon favorably by the electors of the county, the mill levy shall become effective and be made for the ensuing fiscal year and those future years, not less than three nor more than seven, as stated in the question voted upon; provided that the question of continuing the mill levy shall thereafter be submitted to the electors at the general election immediately prior to the expiration of the period of assessment previously approved. The county commissioners shall decrease the rate of any mill levy imposed under the Hospital Funding Act if required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978. Subject to the provisions of Subsection D of this section, the county commissioners may direct that the mill levy be decreased or not be made for any year if, in their judgment, sufficient funds for operation and maintenance of the hospital and transfer to the county-supported medicaid fund, if applicable, are available or will be obtained from other sources and if, relative to a county hospital operated by a state educational institution named in Article 12, Section 11 of the constitution of New Mexico, a decision to decrease the mill levy is agreed to by the state educational institution.
I. In the event that the mill levy approved by the electors is less than the maximum mill levy authorized for the county by Subsection F of this section and the county commissioners desire to increase the amount of the approved mill levy, the county commissioners shall submit, in accordance with Subsection F of this section, to the qualified electors of the county the questions of levying those additional taxes for a period of time consistent with the expiration of the mill levy previously approved; provided that the additional taxes, when added to the mill levy previously approved, may not exceed the mill levy maximum for the county provided in Subsection A of this section. In the event that the mill levy increase is voted upon favorably by the electors of the county, the increase shall become effective for the years stated in the question voted upon. Nothing in this subsection shall be construed as requiring an election to restore the mill levy to an amount higher than the mill levy approved by the electors after a reduction in the mill levy made pursuant to Subsection H of this section."
SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2012.
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