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| SPONSOR: | SCORC | DATE TYPED: | 03/01/01 | HB | |||
| SHORT TITLE: | Higher Rate of Occupancy Tax | SB | 763/SCORCS | ||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY01 | FY02 | |||
| $ 2,000.0 | $ 2,000.0 | Recurring | Albuquerque Lodger's Tax | |
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to HB907
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
This bill proposes a number of provisions that may result in the funding and building of a minor league baseball stadium in Albuquerque.
The principal provision of this bill is a local option increase in lodger's tax for Albuquerque from the current 5 percent to 6.25 percent. Half the increase must be devoted to the same general purposes as the current 5 percent lodgers tax while half the increase may be used for the purpose of acquiring land for, designing, constructing, or renovating a minor league baseball stadium in Albuquerque. The stadium fee revenue portion of the increase in lodger's tax may be used to retire revenue bonds issued for building or renovating the stadium.
The increase may be imposed by ordinance and does not require voter approval.
FISCAL IMPLICATIONS
The Taxation and Revenue Department (TRD) report that FY99 lodger's tax receipts for the city of Albuquerque was approximately $8.1 million. The proposed 1.25 percent tax increase would generate a little over $2 million. Half of this revenue ($1 million) would be available to retire bonds sold to construct a new stadium or renovate the existing stadium. TRD estimates that the
revenue available annually could support the issuance of approximately $17 million in bonds (assuming 5.5 percent for 30 years at a 1-1 coverage ratio). This is about half the amount requested by the mayor's committee for either renovating or building a new stadium.
This bill does not involve the Taxation and Revenue Department (TRD) in the collection or administration of the tax imposed.
TECHNICAL ISSUES
Page 10, line 5 "capitol" should be "capital".
OTHER SUBSTANTIVE ISSUES
With the imposition of the additional 1.25 percent, the total taxes on lodging in Albuquerque would be 12.0625 percent.
JBE/njw:ar