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 for other purposes.

 

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

 

 

SPONSOR:

Komadina

 

DATE TYPED:

03/15/02

 

HB

 

 

SHORT TITLE:

County Emergency Services Tax

 

SB

65/aSPAC/aSFC

 

 

ANALYST:

Gilbert

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

See Narrative

 

Recurring

County

(Parenthesis ( ) Indicate Revenue Decreases)

 

Duplicates HB58

 

SOURCES OF INFORMATION

 

LFC files

 

Responses Received From

Taxation and Revenue Department (TRD)

Department of Finance and Administration (DFA)

 

SUMMARY

 

     Synopsis SFC Amendment

 

The Senate Finance Committee amendment to Senate Bill 65 makes a technical correction to page 3, line 20.

 

Additionally, the following language was added to page 3, line21, to clarify what sector of the voting public is eligible to vote in elections relating to imposition of an emergency communications and emergency medical services tax:

 

In the case of an ordinance imposing an increment of the countywide emergency communications and emergency medical services tax, the election shall be conducted countywide.  In the case of an ordinance imposing the county area emergency communications and emergency medical services tax, the election shall be conducted only in the county area.

 

    

     Synopsis SPAC Amendment

 

The Senate Public Affairs Committee amendment to Senate Bill 65, make a technical correction to page 3, line 20. This bill would give counties the option to impose a countywide or a county area emergency communications and medical services tax, including county areas outside of specific municipal boundaries. The language in this amendment clarifies that the outcome of elections for this purpose are determined by a majority of the voters, as opposed to a majority of county voters who vote in such elections.

 

     Synopsis of Original Bill

 

Senate Bill 65 would amend the County Local Option Gross Taxes Act.  Present law authorizes certain counties to impose an excise tax at a rate not to exceed one-fourth of one percent for county emergency communications and emergency medical services, in increments of one-sixteenth of one percent.   The proposed bill would give counties the option to impose the county emergency communications and medical services tax in areas of a county outside of specific municipal boundaries. The language maintains the ordinance imposing the tax increase must be approved by a majority of the voters in a general or special election in order for the ordinance to go into effect.  The tax shall not be imposed for a period of more that ten years from the effective date of the ordinance imposing the tax. The tax may only be used for one or both of the following purposes: operation of the emergency communications center that is designated by the Department of Finance and Administration as a public safety answering point and operation of emergency medical services (EMS) provided by the county.

 

     Significant Issues

 

·        Emergency communications centers and county operated emergency medical services are essential safety-net services that are maintained to deal with routine and emergency responses.

·        The proposed change in this tax would give counties further flexibility to insure emergency services throughout the county.

·        According to present law, the counties of Chaves, Cibola, Eddy, Lea, Lincoln, Otero and Sandoval are not eligible to impose the tax as they do not operate a consolidated public safety answering point.

 

FISCAL IMPLICATIONS

 

The Taxation and Revenue Department provided the attached table on revenue impact for counties.

 

·        Minimal potential revenue based upon FY02 taxable gross receipts for eligible counties at the 0.0625% increment total $3,309,005.

·        Maximum potential revenue based upon FY02 taxable gross receipts for eligible counties at the 0.25% increment total $13,236,002.

 

POSSIBLE QUESTIONS

 

1.      What is the current condition of county operated emergency communications and emergency medical services?

2.      How will the language change affect current services of eligible counties?

3.      Will this tax limit or impede the state in any way from raising revenue from the gross receipts tax?

 

MM/njw:sb:yr

 

Attachment

 

Potential Revenue from County-Area Emergency Communications and Emergency Services Tax

(Illustration at Fiscal Year 2002 Levels)

 

 

 

 

 

 

 

Fiscal Year 2002

Tax  Increment

County Area

Taxable Gross Receipts

0.0625%

0.1250%

0.1875%

0.2500%

Bernalillo

                        2,006,439,195

              1,254,024

            2,508,049

            3,762,073

          5,016,098

Catron

                             15,541,620

                     9,714

                 19,427

                 29,141

               38,854

Chaves

Not Eligible                          

 Not Eligible

 Not Eligible

 Not Eligible

 Not Eligible

Cibola

                             Not Eligible

 Not Eligible

 Not Eligible

 Not Eligible

 Not Eligible

Colfax

                             62,177,085

                   38,861

                 77,721

               116,582

             155,443

Curry

                             83,042,878

                   51,902

               103,804

               155,705

             207,607

DeBaca

                               8,331,668

                     5,207

                 10,415

                 15,622

               20,829

Dona Ana

                           406,085,467

                 253,803

               507,607

               761,410

          1,015,214

Eddy

                         Not Eligible 

 Not Eligible

 Not Eligible

 Not Eligible

 Not Eligible

Grant

                           114,158,201

                   71,349

               142,698

               214,047

             285,396

Guadalupe

                             15,963,412

                     9,977

                 19,954

                 29,931

               39,909

Harding

                               3,592,928

                     2,246

                   4,491

                   6,737

                 8,982

Hidalgo

                             15,848,568

                     9,905

                 19,811

                 29,716

               39,621

Lea

Not Eligible

 Not Eligible

 Not Eligible

 Not Eligible

 Not Eligible

Lincoln

Not Eligible

 Not Eligible

 Not Eligible

 Not Eligible

 Not Eligible

Los Alamos*

 N/A

 N/A

 N/A

 N/A

 N/A

Luna

                             43,554,342

                   27,221

                 54,443

                 81,664

             108,886

McKinley

                           285,180,667

                 178,238

               356,476

               534,714

             712,952

Mora

                             22,058,800

                   13,787

                 27,574

                 41,360

               55,147

Otero

                           Not Eligible

 Not Eligible

 Not Eligible

 Not Eligible

 Not Eligible

Quay

                             18,880,834

                   11,801

                 23,601

                 35,402

               47,202

Rio Arriba

                           191,633,398

                 119,771

               239,542

               359,313

             479,083

Roosevelt

                             39,046,229

                   24,404

                 48,808

                 73,212

               97,616

Sandoval

Not Eligible

 Not Eligible

 Not Eligible

 Not Eligible

 Not Eligible

San Juan

                           991,844,954

                 619,903

            1,239,806

            1,859,709

          2,479,612

San Miguel

                             53,135,668

                   33,210

                 66,420

                 99,629

             132,839

Santa Fe

                           561,298,384

                 350,811

               701,623

            1,052,434

          1,403,246

Sierra

                             20,284,459

                   12,678

                 25,356

                 38,033

               50,711

Socorro

                             32,711,927

                   20,445

                 40,890

                 61,335

               81,780

Taos

                           129,345,235

                   80,841

               161,682

               242,522

             323,363

Torrance

                             46,020,686

                   28,763

                 57,526

                 86,289

             115,052

Union

                             26,036,844

                   16,273

                 32,546

                 48,819

               65,092

Valencia

                           102,195,305

                   63,872

               127,744

               191,616

             255,488

 

 

 

 

 

 

All Eligible Counties

5,294,408,754

3,309,005

            6,618,011

9,927,016

13,236,022