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

SPONSOR:	Garcia		DATE TYPED:	1/30/02		HB
SHORT TITLE:		Convention Center Financing Act				SB	114
					ANALYST:		J. Sandoval

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY02	FY03
	$0.1 Indeterminate	$0.1 Indeterminate	Recurring	Local Communities

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC files

Responses Received From

Economic Development Department

New Mexico Department of Tourism

No Response

The Department of Finance and Administration

SUMMARY

Senate Bill 114 authorizes “convention center fee” that amounts to a daily surcharge of up to $2.50 for lodging within certain municipalities. The proceeds can only be used for land, construction, design, furnishing, equipping, operating and maintaining a convention center within the municipality. The bill pertains only to a municipality located in a class A county with a population between 70,000 and 100,000 according to the 2000 Census.

This bill also authorizes securing revenue bonds with the proceeds to only be used for convention facilities.

FISCAL IMPLICATIONS

This bill provides authorization for certain municipalities to levy a lodging surcharge of up to $2.50. All revenue generated from this surcharge will remain within the jurisdiction of the municipality. The potential revenue from this surcharge is unknown at this time.

RELATIONSHIP

The bill appears to resemble an existing statute pertaining to lodging taxes (the Lodgers Tax Act).

OTHER SUBSTANTIVE ISSUES

Some exemptions from the convention center fee include lodging accommodations at institutions of the federal government, the state or any political subdivision thereof; religious, charitable, educational or philanthropic institutions and privately owned and operated convalescent homes or homes for the aged, infirm, indigent or chronically ill.

POSSIBLE QUESTIONS

1. Are there not other sources of revenue currently in existence to pay for the projects described in this bill?

2. What counties have a population between 70,000 and 100,000?

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

SOURCES OF INFORMATION

LFC files

Responses Received From

JFS/njw