0001| SENATE BILL 4
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0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - FIRST SPECIAL
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0003| SESSION, 1996
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0004| INTRODUCED BY
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0005| JOSEPH A. FIDEL
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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; AUTHORIZING IMPOSITION OF THE LOCAL
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0013| HOSPITAL GROSS RECEIPTS TAX IN ADDITIONAL CLASSES OF COUNTIES;
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0014| AMENDING SECTIONS OF THE NMSA 1978.
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0015|
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0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017| Section 1. Section 7-20C-2 NMSA 1978 (being Laws 1991,
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0018| Chapter 176, Section 2, as amended) is amended to read:
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0019| "7-20C-2. DEFINITIONS.--As used in the Local Hospital
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0020| Gross Receipts Tax Act:
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0021| A. "county" means:
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0022| (1) a class B county having a population of
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0023| less than twenty-five thousand according to the most recent
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0024| federal decennial census and having a net taxable value for
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0025| rate-setting purposes for the 1990 property tax year or any
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0001| subsequent year of more than two hundred fifty million dollars
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0002| ($250,000,000);
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0003| (2) a class B county having a population of
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0004| less than forty-seven thousand but more than forty-four thousand
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0005| according to the 1990 federal decennial census and having a net
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0006| taxable value for rate-setting purposes for the 1992 property
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0007| tax year of more than three hundred million dollars
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0008| ($300,000,000) but less than six hundred million dollars
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0009| ($600,000,000); [or]
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0010| (3) a class B county [in New Mexico] having a
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0011| population of less than ten thousand according to the most
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0012| recent federal decennial census and having a net taxable value
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0013| for rate-setting purposes for the 1990 property tax year or any
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0014| subsequent year of more than one hundred million dollars
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0015| ($100,000,000);
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0016| (4) a class B county having a population of
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0017| less than twenty-five thousand according to the 1990 federal
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0018| decennial census and having a net taxable value for rate-setting
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0019| purposes for the 1993 property tax year of more than ninety-one
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0020| million dollars ($91,000,000) but less than one hundred twenty-five million dollars ($125,000,000); or
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0021| (5) a class B county having a population of
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0022| more than seventeen thousand but less than twenty thousand
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0023| according to the 1990 federal decennial census and having a net
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0024| taxable value for rate-setting purposes for the 1993 property
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0025| tax year of more than one hundred fifty-three million dollars
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0001| ($153,000,000) but less than one hundred fifty-six million
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0002| dollars ($156,000,000);
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0003| B. "department" means the taxation and revenue
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0004| department, the secretary of taxation and revenue or any
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0005| employee of the department exercising authority lawfully
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0006| delegated to that employee by the secretary;
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0007| C. "governing body" means the board of county
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0008| commissioners of a county;
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0009| D. "local hospital gross receipts tax" means the tax
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0010| authorized to be imposed under the Local Hospital Gross Receipts
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0011| Tax Act;
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0012| E. "person" means an individual or any other legal
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0013| entity; and
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0014| F. "state gross receipts tax" means the gross
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0015| receipts tax imposed under the Gross Receipts and Compensating
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0016| Tax Act."
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0017| Section 2. Section 7-20C-3 NMSA 1978 (being Laws 1991,
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0018| Chapter 176, Section 3, as amended) is amended to read:
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0019| "7-20C-3. LOCAL HOSPITAL GROSS RECEIPTS TAX--AUTHORITY TO
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0020| IMPOSE--ORDINANCE REQUIREMENTS.--
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0021| A. [The] A majority of the members elected to the
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0022| governing body of a county may enact an ordinance imposing an
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0023| excise tax on any person engaging in business in the county for
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0024| the privilege of engaging in business. This tax is to be
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0025| referred to as the "local hospital gross receipts tax". The
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0001| rate of the tax shall be:
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0002| (1) one-half of one percent of the
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0003| gross receipts of the person engaging in business if the tax is
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0004| initially imposed before January 1, 1993; [The rate of the tax
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shall be]
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0006| (2) one-eighth of one percent of the
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0007| gross receipts of the person engaging in business if the tax is
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0008| initially imposed after January 1, 1993; and
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0009| (3) a rate not to exceed one-half of one
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0010| percent of the gross receipts of the person engaging in business
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0011| if the tax is imposed after July 1, 1996 in a county described
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0012| in Paragraph (4) of Subsection A of Section 7-20C-2 NMSA 1978;
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0013| provided, the tax may be imposed in any number of increments of
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0014| one-eighth percent not to exceed an aggregate rate of one-half
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0015| of one percent of gross receipts.
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0016| B. The local hospital gross receipts tax imposed
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0017| initially before January 1, 1993 shall be imposed only once for
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0018| the period necessary for payment of the principal and interest
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0019| on revenue bonds issued to accomplish the purpose for which the
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0020| revenue is dedicated, but the period shall not exceed ten years
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0021| from the effective date of the ordinance imposing the tax. The
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0022| local hospital gross receipts tax imposed after July 1, 1996 in
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0023| a county described in Paragraph (4) of Subsection A of Section
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0024| 7-20C-2 NMSA 1978 shall be imposed only once for the period
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0025| necessary for payment of the principal and interest on revenue
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0001| bonds issued to accomplish the purpose for which the revenue is
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0002| dedicated, but the period shall not exceed twenty years from the
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0003| effective date of the ordinance imposing the tax.
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0004| C. No local hospital gross receipts tax authorized
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0005| in Subsection A of this section shall be imposed initially after
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0006| January 1, 1993 unless:
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0007| (1) in a county described in Paragraph (2) of
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0008| Subsection A of Section 7-20C-2 NMSA 1978, the voters of the
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0009| county have approved the issuance of general obligation bonds of
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0010| the county sufficient to pay at least one-half of the costs of
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0011| the county hospital facility or county twenty-four hour urgent
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0012| care or emergency facility for which the local hospital gross
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0013| receipts tax revenues are dedicated, including the costs of all
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0014| acquisition, renovation and equipping of the facility; or
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0015| (2) in a county described in Paragraph (3) or
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0016| (5) of Subsection A of Section 7-20C-2 NMSA 1978, the county
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0017| will not have in effect at the same time a county hospital
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0018| emergency gross receipts tax and the voters of the county have
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0019| approved the imposition of a property tax at a rate of one
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0020| dollar ($1.00) on each one thousand dollars ($1,000) of taxable
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0021| value of property in the county for the purpose of operation and
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0022| maintenance of a hospital owned by the county and operated and
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0023| maintained either by the county or by another party pursuant to
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0024| a lease with the county.
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0025| D. The governing body of a county enacting an
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0001| ordinance imposing a local hospital gross receipts tax shall
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0002| dedicate the revenue from the tax as provided in this
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0003| subsection. In any election held, the ballot shall clearly
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0004| state the purpose to which the revenue will be dedicated and the
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0005| revenue shall be used by the county for that purpose. The
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0006| revenues shall be dedicated as follows:
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0007| [D.] (1) prior to January 1, 1993, the
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0008| governing body, at the time of enacting an ordinance imposing
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0009| the rate of the tax authorized in Subsection A of this section,
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0010| shall dedicate the revenue for acquisition of land for and the
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0011| design, construction, equipping and furnishing of a county
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0012| hospital facility to be operated by the county or operated and
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0013| maintained by another party pursuant to a lease with the county;
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0014| (2) if the governing body of a county
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0015| described in Paragraph (2), (3) or (5) of Subsection A of
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0016| Section 7-20C-2 NMSA 1978 is enacting the ordinance imposing
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0017| the tax after July 1, 1993, the governing body shall dedicate
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0018| the revenue for acquisition, renovation and equipping of a
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0019| building for a county hospital facility or a county twenty-four
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0020| hour urgent care or emergency facility or for operation and
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0021| maintenance of that facility, whether operated and maintained by
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0022| the county or by another party pursuant to a lease or
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0023| management contract with the county, for the period of time the
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0024| tax is imposed not to exceed ten years; [In any election held,
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the ballot shall clearly state the purpose to which the revenue
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will be dedicated and the revenue shall be used by the county
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for that purpose] and
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0003| (3) if the governing body of a county described
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0004| in Paragraph (4) of Subsection A of Section 7-20C-2 NMSA 1978 is
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0005| enacting the ordinance imposing the tax after July 1, 1995, the
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0006| governing body shall dedicate the revenue for acquisition of
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0007| land or buildings for and the renovation, design, construction,
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0008| equipping or furnishing of a county hospital facility to be
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0009| operated by the county or operated and maintained by another
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0010| party pursuant to a lease or management contract with the
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0011| county.
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0012| E. The ordinance shall not go into effect until
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0013| after an election is held and a simple majority of the qualified
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0014| electors of the county voting in the election votes in favor of
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0015| imposing the local hospital gross receipts tax and, in the case
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0016| of a county described in Paragraph (3) or (5) of Subsection A
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0017| of Section 7-20C-2 NMSA 1978, also votes in favor of a property
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0018| tax at a rate of one dollar ($1.00) for each one thousand
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0019| dollars ($1,000) of taxable value of property in the county.
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0020| The governing body shall adopt a resolution calling for an
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0021| election within seventy-five days of the date the ordinance is
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0022| adopted on the question of imposing the tax. The question may
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0023| be submitted to the qualified electors and voted upon as a
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0024| separate question in a general election or in any special
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0025| election called for that purpose by the governing body. A
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0001| special election upon the question shall be called, held,
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0002| conducted and canvassed in substantially the same manner as
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0003| provided by law for general elections. If the question of
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0004| imposing a local hospital gross receipts tax fails or if the
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0005| question of imposing both a local hospital gross receipts tax
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0006| and a property tax fails, the governing body shall not again
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0007| propose a local hospital gross receipts tax for a period of one
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0008| year after the election. A certified copy of any ordinance
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0009| imposing a local hospital gross receipts tax shall be mailed to
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0010| the department within five days after the ordinance is adopted
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0011| in any election called for that purpose.
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0012| F. Any ordinance enacted pursuant to the provisions
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0013| of Subsection A of this section shall include an effective date
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0014| of either July 1 or January 1, whichever date occurs first after
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0015| the expiration of at least three months from the date the
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0016| ordinance is approved by the electorate.
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0017| G. Any ordinance repealed under the provisions of
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0018| the Local Hospital Gross Receipts Tax Act shall be repealed
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0019| effective on either July 1 or January 1.
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0020| H. As used in this section, "taxable value of
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0021| property" means the sum of:
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0022| (1) the net taxable value, as that term is
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0023| defined in the Property Tax Code, of property subject to
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0024| taxation under the Property Tax Code;
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0025| (2) the assessed value of products, as those
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0001| terms are defined in the Oil and Gas Ad Valorem Production Tax
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0002| Act;
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0003| (3) the assessed value of equipment, as those
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0004| terms are defined in the Oil and Gas Production Equipment Ad
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0005| Valorem Tax Act; and
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0006| (4) the taxable value of copper mineral
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0007| property, as those terms are defined in the Copper Production Ad
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0008| Valorem Tax Act, subject to taxation under the Copper Production
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0009| Ad Valorem Tax Act."
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0010| Section 3. Section 7-20C-9 NMSA 1978 (being Laws 1991,
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0011| Chapter 176, Section 9, as amended) is amended to read:
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0012| "7-20C-9. LOCAL HOSPITAL REVENUE BONDS--AUTHORITY TO
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0013| ISSUE--PLEDGE OF REVENUES.--
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0014| A. A county, other than a county described in
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0015| Paragraph (2) of Subsection A of Section 7-20C-2 NMSA 1978, may
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0016| issue local hospital revenue bonds pursuant to the Local
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0017| Hospital Gross Receipts Tax Act for the purpose of acquiring
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0018| land for and designing, constructing, equipping and furnishing a
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0019| county hospital facility to be operated by the county or by
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0020| another party pursuant to a lease or management contract with
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0021| the county.
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0022| B. The county issuing the local hospital revenue
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0023| bonds pursuant to the Local Hospital Gross Receipts Tax Act
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0024| shall pledge irrevocably all of the net receipts derived from
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0025| the imposition of the local hospital gross receipts tax and may
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0001| pledge irrevocably any combination of hospital facility revenues
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0002| and any other revenues as necessary for the payment of principal
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0003| and interest on the revenue bonds."
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0004| Section 4. Section 7-20C-11 NMSA 1978 (being Laws 1991,
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0005| Chapter 176, Section 11, as amended) is amended to read:
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0006| "7-20C-11. REVENUE BONDS--TERMS.--Local hospital revenue
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0007| bonds:
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0008| A. may have interest, appreciated principal value or
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0009| any part thereof payable at intervals or at maturity as may be
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0010| determined by the governing body in the ordinance;
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0011| B. may be subject to a prior redemption at the
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0012| option of the county at such [time or] times and upon such
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0013| terms and conditions, with or without the payment of such
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0014| [premium or] premiums, as may be provided by the ordinance
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0015| authorizing the bonds;
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0016| C. may mature at any time not exceeding [ten]
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0017| twenty years after the date of issuance;
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0018| D. may be serial in form and maturity or may consist
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0019| of one bond payable at one time or in installments or may be in
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0020| any other form as may be provided in the ordinance authorizing
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0021| the bonds;
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0022| E. shall be sold for cash at, above or below par and
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0023| at a price that results in a net effective interest rate that
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0024| does not exceed the maximum permitted by the Public Securities
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0025| Act; and
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0001| F. may be sold at a public or negotiated sale."
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0002| - 11 -
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0003|
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0004| FORTY-SECOND LEGISLATURE
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0005| FIRST SPECIAL SESSION, 1996
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0006|
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0007|
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0008| March 20, 1996
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0009|
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0010| Mr. President:
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0011|
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0012| Your WAYS AND MEANS COMMITTEE, to whom has been
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0013| referred
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0014|
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0015| SENATE BILL 4
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0016|
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0017| has had it under consideration and reports same with
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0018| recommendation that it DO PASS.
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0019|
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0020| Respectfully submitted,
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0021|
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0022|
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0023|
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0024| __________________________________
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0025| Tito D. Chavez, Chairman
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0001|
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0002|
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0003|
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0004| Adopted_______________________ Not Adopted_______________________
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0005| (Chief Clerk) (Chief Clerk)
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0006|
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0007|
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0008|
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0009| Date ________________________
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0010|
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0011|
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0012| The roll call vote was 6 For 1 Against
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0013| Yes: 6
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0014| No: Rawson
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0015| Excused: Wiener
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0016| Absent: None
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0017|
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0018|
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0019| S0004WM1
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0020| State of New Mexico
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0021| House of Representatives
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0022|
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0023| FORTY-SECOND LEGISLATURE
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0024| FIRST SPECIAL SESSION, 1996
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0025|
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0001|
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0002| March 21, 1996
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0003|
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0004|
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0005| Mr. Speaker:
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0006|
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0007| Your TAXATION AND REVENUE COMMITTEE, to whom has
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0008| been referred
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0009|
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0010| SENATE BILL 4
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0011|
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0012| has had it under consideration and reports same with
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0013| recommendation that it DO PASS.
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0014|
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0015| Respectfully submitted,
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0016|
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0017|
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0018|
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0019|
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0020| Jerry W. Sandel, Chairman
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0021|
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0022|
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0023| Adopted Not Adopted
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0024|
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0025| (Chief Clerk) (Chief Clerk)
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0001|
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0002| Date
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0003|
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0004| The roll call vote was 12 For 0 Against
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0005| Yes: 12
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0006| Excused: None
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0007| Absent: Crook
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0008|
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0009|
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0010|
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0011| S0004TR1
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