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| SPONSOR: | Taylor, T.C. | DATE TYPED: | 02/23/01 | HB | 684 | ||
| SHORT TITLE: | Compensating Tax Distribution to Cities | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY01 | FY02 | |||
| $ (11,300.0) | $ (11,300.0) | Recurring | General Fund | |
| $ 11,300.0 | $ 11,300.0 | Recurring | Local Govt. | |
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
The bill proposes a new distribution to municipalities funded by compensating tax collections. The amount of new funding for the cities is $1,500 per month per city or $18,000 per year.
Albuquerque, Santa Fe, Farmington and Las Cruces receive their taxable gross receipts share equal to 1.225 percent of net compensating tax collections. This distribution consumes about 5 percent of net compensating tax collections to add to the current law of 10 percent distributions of compensating tax collections to small cities and distributions up to 10 percent to small counties.
Except for the four largest municipalities, each village, town or city will receive 18,000 per year under this proposal.
Significant Issues
It is likely that county governments would also like to be included in this kind of new distribution.
FISCAL IMPLICATIONS
The Taxation and Revenue Department (TRD) preliminary estimate is that this bill's full year impact would reduce the general fund by $11.3 million and increase municipal revenues by the same amount.
ADMINISTRATIVE IMPLICATIONS
Unknown.
JBE/ar