[1] NOTE: As provided in LFC policy, this report is intended only 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 (in HTML & Adobe PDF formats) is available on the Legislative Website. The Adobe PDF version includes all attachments, whereas the HTML version does not. Previously issued FIRs and attachments may be obtained from the LFC’s office in Suite 101 of the State Capitol Building North.

F I S C A L I M P A C T R E P O R T

SPONSOR:	Begaye		DATE TYPED:	1-28-02		HB	125
SHORT TITLE:		Financing From Industrial Revenue Bonds				SB
					ANALYST:		Neel

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY02	FY03
	Unaffected	Unaffected	Recurring	General Fund
	($0.1)	($0.1)	Recurring	Local Governments

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC files

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

House Bill 125 amends the Industrial Revenue Bond Act and the County Industrial Revenue Bond Act to allow 501(c) (3) corporations to qualify for financing from municipalities or counties. HB 125 also expands eligibility for loans under the Hospital Equipment Loan Council to include health facilities licensed by the Department of Health that “(1) provide health related services, assisted living support or long term; (2) provide health related research; and (3) are properly accredited or certified and eligible to receive medicare or medicaid reimbursement for all or part of its activities providing mental health services…”

FISCAL IMPLICATIONS

According to TRD, if charitable organizations are awarded IRB’s, property then the bonds used to acquire the property would be excluded from the property tax base. This would lower property tax revenue and/or increase property tax rates. The extent of the impacts would depend on the amount of property financed with the bonds. Although the IRB’s would also make the use of the property exempt from the gross receipts and compensating tax, there is no new loss of State General Fund revenue because 501(c)(3) entities are already exempt from these taxes.

Effective Date – Not determined

SN/njw