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SPONSOR: |
Fidel |
DATE TYPED: |
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HB |
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SHORT TITLE: |
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SB |
44\a SFC |
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ANALYST: |
Smith |
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REVENUE
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Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
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NFI |
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(Parenthesis ( ) Indicate Revenue Decreases)
Responses
Received From
Department
of Finance and Administration
SUMMARY
The Senate Finance Committee amendment clarifies
that PILT bonds can be issued for new or preexisting loans provided by the
NMFA.
Synopsis
of Bill
Senate Bill 44 amends Section 4-62-1
NMSA and allows a county to issue "Payment In Lieu of Taxes" (PILT)
revenue bonds to repay all or part of the principle and interest of an outstanding
loan owed by the county to the New Mexico Finance Authority. A county may pledge irrevocably all or part
of PILT revenue for the payment of interest and principle of the outstanding
loan.
OTHER SUBSTANTIVE ISSUES
DFA notes that PILT monies,
generated from offshore-oil-drilling royalties, are provided by the Federal
Government to help counties make up for tax revenues lost because of large
tracts of untaxable federal land inside the counties' borders. Appropriation amounts may be recommended by
the U.S. President and the U.S. Congress.
However, PILT funding could theoretically be
reduced, increased or vetoed. In some cases, PILT payments make up 44
percent of a county's tax base. President
Bush has proposed reducing the compensation payments from $210 million this
year to $165 million next year.
SS/yr