AN ACT
RELATING TO TAXATION; AMENDING THE
LOCAL HOSPITAL GROSS RECEIPTS TAX ACT TO ADD SAN JUAN COUNTY AS A COUNTY
ELIGIBLE TO IMPOSE THE TAX; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF
THE STATE OF NEW MEXICO:
Section 1. Section 7-20C-2 NMSA 1978 (being Laws 1991,
Chapter 176, Section 2, as amended) is amended to read:
"7-20C-2. DEFINITIONS.--As used in the Local Hospital
Gross Receipts Tax Act:
A. "county" means:
(1) a class B county having a population of less
than twenty-five thousand according to the most recent federal decennial census
and having a net taxable value for rate-setting purposes for the 1990 property
tax year or any subsequent year of more than two hundred fifty million dollars
($250,000,000);
(2) a class B county having a population of less
than forty-seven thousand but more than forty-four thousand according to the
1990 federal decennial census and having a net taxable value for rate-setting
purposes for the 1992 property tax year of more than three hundred million
dollars ($300,000,000) but less than six hundred million dollars
($600,000,000);
(3) a class B county having a population of less
than ten thousand according to the most recent federal decennial census and
having a net taxable value for rate-setting purposes for the 1990 property tax
year or any subsequent year of more than one hundred million dollars
($100,000,000);
(4) a class B county having a population of less
than twenty-five thousand according to the 1990 federal decennial census and
having a net taxable value for rate-setting purposes for the 1993 property tax
year of more than ninety-one million dollars ($91,000,000) but less than one
hundred twenty-five million dollars ($125,000,000);
(5) a class B county having a population of more
than seventeen thousand but less than twenty thousand according to the 1990
federal decennial census and having a net taxable value for rate-setting
purposes for the 1993 property tax year of more than one hundred fifty-three
million dollars ($153,000,000) but less than one hundred fifty-six million
dollars ($156,000,000);
(6) a class B county having a population of more
than fifteen thousand according to the 1990 federal decennial census and having
a net taxable value for rate-setting purposes for the 1996 property tax year of
more than one hundred fifty million dollars ($150,000,000) but less than one
hundred seventy-five million dollars ($175,000,000);
(7) an H class county; or
(8) a class A county having a population of less
than one hundred fifteen thousand according to the 2000 federal decennial
census or any subsequent federal decennial census and having a net taxable
value for rate-setting purposes for the 2001 property tax year or any
subsequent year of more than three billion dollars ($3,000,000,000);
B. "department" means the taxation and
revenue department, the secretary of taxation and revenue or any employee of
the department exercising authority lawfully delegated to that employee by the
secretary;
C. "governing body" means the board of
county commissioners of a county;
D. "health care facilities contract"
means an agreement between a hospital or health clinic not owned by the county
and a county imposing the tax authorized by the Local Hospital Gross Receipts
Tax Act that obligates the county to pay to the hospital revenue generated by
the tax authorized in that act as consideration for the agreement by the
hospital or health clinic to use the funds only for nonsectarian purposes and
to make health care services available for the benefit of the county;
E. "hospital facility revenues" means
all or a portion of the revenues derived from a lease of a hospital facility
acquired, constructed or equipped pursuant to and operated in accordance with
the Local Hospital Gross Receipts Tax Act;
F. "local hospital gross receipts tax"
means the tax authorized to be imposed under the Local Hospital Gross Receipts
Tax Act;
G. "person" means an individual or any
other legal entity; and
H. "state gross receipts tax" means
the gross receipts tax imposed under the Gross Receipts and Compensating Tax
Act."
Section 2. Section 7-20C-3 NMSA 1978 (being Laws 1991,
Chapter 176, Section 3, as amended) is amended to read:
"7-20C-3. LOCAL HOSPITAL GROSS RECEIPTS TAX--AUTHORITY
TO IMPOSE--ORDINANCE REQUIREMENTS.--
A. A majority of the members elected to the
governing body of a county may enact an ordinance imposing an excise tax on a
person engaging in business in the county for the privilege of engaging in
business. This tax is to be referred to
as the "local hospital gross receipts tax". The rate of the tax shall be:
(1) one half of one percent of the gross receipts
of the person engaging in business if the tax is initially imposed before
January 1, 1993;
(2) one eighth of one percent of the gross
receipts of the person engaging in business if the tax is initially imposed
after January 1, 1993; and
(3) a rate not to exceed one half of one percent
of the gross receipts of the person engaging in business if the tax is imposed
after July 1, 1996 in a county described in Paragraph (4), (6), (7) or (8) of
Subsection A of Section 7-20C-2 NMSA 1978; provided the tax may be imposed in
any number of increments of one-eighth percent not to exceed an aggregate rate
of one half of one percent of gross receipts.
B. The local hospital gross receipts tax imposed
initially before January 1, 1993 shall be imposed only once for the period
necessary for payment of the principal and interest on revenue bonds issued to
accomplish the purpose for which the revenue is dedicated, but the period shall
not exceed ten years from the effective date of the ordinance imposing the
tax. The local hospital gross receipts
tax imposed after July 1, 1996 in a county described in Paragraph (4) or (8) of
Subsection A of Section 7-20C-2 NMSA 1978 shall be imposed only once for the
period necessary for payment of the principal and interest on revenue bonds
issued to accomplish the purpose for which the revenue is dedicated, but the
period shall not exceed forty years from the effective date of the ordinance
imposing the tax.
C. No local hospital gross receipts tax
authorized in Subsection A of this section shall be imposed initially after
January 1, 1993 in a county described in Paragraph (2), (3) or (5) of
Subsection A of Section 7-20C-2 NMSA 1978 unless:
(1) in a county described in Paragraph (2) of
Subsection A of Section 7-20C-2 NMSA 1978, the voters of the county have
approved the issuance of general obligation bonds of the county sufficient to
pay at least one half of the costs of the county hospital facility or county
twenty-four-hour urgent care or emergency facility for which the local hospital
gross receipts tax revenues are dedicated, including the costs of all
acquisition, renovation and equipping of the facility; or
(2) in a county described in Paragraph (3) or (5)
of Subsection A of Section 7-20C-2 NMSA 1978, the county will not have in
effect at the same time a county hospital emergency gross receipts tax and the
voters of the county have approved the imposition of a property tax at a rate
of one dollar ($1.00) on each one thousand dollars ($1,000) of taxable value of
property in the county for the purpose of operation and maintenance of a
hospital owned by the county and operated and maintained either by the county
or by another party pursuant to a lease with the county.
D. The governing body of a county enacting an
ordinance imposing a local hospital gross receipts tax shall dedicate the
revenue from the tax as provided in this subsection. In any election held, the ballot shall
clearly state the purpose to which the revenue will be dedicated and the
revenue shall be used by the county for that purpose. The revenue shall be dedicated as follows:
(1) prior to January 1, 1993, the governing body,
at the time of enacting an ordinance imposing the rate of the tax authorized in
Subsection A of this section, shall dedicate the revenue for acquisition of
land for and the design, construction, equipping and furnishing of a county
hospital facility to be operated by the county or operated and maintained by
another party pursuant to a lease with the county;
(2) if the governing body of a county described
in Paragraph (2), (3) or (5) of Subsection A of Section 7-20C-2 NMSA 1978 is
enacting the ordinance imposing the tax after July 1, 1993, the governing body
shall dedicate the revenue for acquisition, renovation and equipping of a
building for a county hospital facility or a county twenty-four-hour urgent
care or emergency facility or for operation and maintenance of that facility,
whether operated and maintained by the county or by another party pursuant to a
lease or management contract with the county, for the period of time the tax is
imposed not to exceed ten years;
(3) if the governing body of a county described
in Paragraph (4) or (8) of Subsection A of
Section 7-20C-2 NMSA 1978 is enacting
the ordinance imposing the tax after July 1, 1995, the governing body shall
dedicate the revenue for acquisition of land or buildings for and the
renovation, design, construction, equipping or furnishing of a county hospital
facility or health clinic to be operated by the county or operated and
maintained by another party pursuant to a health care facilities contract,
lease or management contract with the county;
(4) if the governing body of a county described
in Paragraph (6) of Subsection A of Section 7-20C-2 NMSA 1978 is enacting the
ordinance imposing the tax after July 1, 1997, the governing body shall
dedicate the revenue for either or a combination of the following:
(a) acquisition of land or buildings for and the
design, construction, renovation, equipping or furnishing of a hospital
facility or health clinic owned by the county or a hospital or health clinic
with whom the county has entered into a health care facilities contract; or
(b) operations and maintenance of a hospital or
health clinic owned by the county or a hospital or health clinic with whom the
county has entered into a health care facilities contract; and
(5) if the governing body of a county described
in Paragraph (7) of Subsection A of Section 7-20C-2 NMSA 1978 is enacting the
ordinance imposing the tax after January 1, 2002, the governing body shall
dedicate the revenue for acquisition, lease, renovation or equipping of a
hospital facility or for operation and maintenance of that facility, whether
operated and maintained by the county or by another party pursuant to a health
care facilities contract, lease or management contract with the county.
E. The ordinance shall not go into effect until
after an election is held and a simple majority of the qualified electors of
the county voting in the election vote in favor of imposing the local hospital
gross receipts tax and, in the case of a county described in Paragraph (3) or
(5) of Subsection A of Section 7-20C-2 NMSA 1978, also vote in favor of a
property tax at a rate of one dollar ($1.00) for each one thousand dollars
($1,000) of taxable value of property in the county. The governing body shall adopt a resolution
calling for an election within seventy-five days of the date the ordinance is
adopted on the question of imposing the tax.
The question may be submitted to the qualified electors and voted on as
a separate question in a general election or in any special election called for
that purpose by the governing body. A
special election on the question shall be called, held, conducted and canvassed
in substantially the same manner as provided by law for general elections. If the question of imposing a local hospital
gross receipts tax fails or if the question of imposing both a local hospital
gross receipts tax and a property tax fails, the governing body shall not again
propose a local hospital gross receipts tax for a period of one year after the
election. A certified copy of any
ordinance imposing a local hospital gross receipts tax shall be mailed to the
department within five days after the ordinance is adopted in an election
called for that purpose.
F. An ordinance enacted pursuant to the
provisions of Subsection A of this section shall include an effective date of
either July 1 or January 1, whichever date occurs first after the expiration of
at least three months from the date the ordinance is approved by the
electorate.
G. An ordinance repealed under the provisions of
the Local Hospital Gross Receipts Tax Act shall be repealed effective on either
July 1 or January 1.
H. As used in this section, "taxable value
of property" means the sum of:
(1) the net taxable value, as that term is
defined in the Property Tax Code, of property subject to taxation under the
Property Tax Code;
(2) the assessed value of products, as those
terms are defined in the Oil and Gas Ad Valorem Production Tax Act;
(3) the assessed value of equipment, as those
terms are defined in the Oil and Gas Production Equipment Ad Valorem Tax Act;
and
(4) the taxable value of copper mineral property,
as those terms are defined in the Copper Production Ad Valorem Tax Act, subject
to taxation under the Copper Production Ad Valorem Tax Act."
Section 3. EMERGENCY.--It is necessary for the public
peace, health and safety that this act take effect immediately.
HB 214
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