SENATE BILL 266

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

George K. Munoz

AN ACT

RELATING TO TAXATION; EXCLUDING A COUNTY FROM THE HOLD HARMLESS DISTRIBUTION REDUCTIONS IF THE COUNTY DOES NOT EXPERIENCE CERTAIN INCREASES IN THE GROSS RECEIPTS TAX BASE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of the Tax Administration Act is enacted to read:

     "[NEW MATERIAL] EXCEPTION TO THE REDUCTIONS IN HOLD HARMLESS DISTRIBUTIONS TO COUNTIES TO OFFSET THE FOOD AND HEALTH CARE PRACTITIONER SERVICES DEDUCTION.--

          A. Notwithstanding the requirements of Section 7-1-6.47 NMSA 1978, a distribution pursuant to that section to a county that does not have in effect and has not had in effect a county hold harmless gross receipts tax shall not be reduced if the county has experienced an average annual increase in the county's gross receipts tax base of less than eleven and seven-tenths percent beginning on or after July 1, 2014.

           B. As used in this section, "gross receipts tax base" means the gross receipts tax base of a county, not including receipts that may be deducted pursuant to Section 7-9-92 or 7-9-93 NMSA 1978."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2015.

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