NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

Relates to SB 167, SB 449, and HB 134

Duplicates HJR 3

SOURCES OF INFORMATION

LFC Files

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

The joint resolution authorizes an amendment to the New Mexico constitution to authorize a new statewide general obligation bond program for public school construction.

The proceeds of the bond issuances would be available to all school districts, based on a formula established in statute to determine qualification criteria. The tax rate would be limited to 3 mills on each dollar of assessed valuation. Debt serviced by the tax would be limited to 2 percent of the assessed valuation of all property subject to taxation in the state

Significant Issues

This bill is a part of the package to implement the recommendations of the Public School Capital Outlay Task Force. The revenue stream to pay off the bonds would be a new property tax.

FISCAL IMPLICATIONS

There are no direct state fiscal impacts from passage of the joint resolution. If voters approved the amendment and enabling legislation were enacted, the new financing program would implement a tax increase.

TRD reports the total net taxable value of New Mexico property is currently about $27.4 billion. A tax rate of $3 per $1,000 of net taxable value would generate approximately $82 million in revenues. The 2 percent limit would constrain revenues to a similar amount.

TECHNICAL ISSUES

Most newer property tax legislation references property tax rates as dollars per thousand dollars of valuation.

AW/ar