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:

Stewart

 

DATE TYPED:

2/13/03

 

HB

166

 

SHORT TITLE:

Amend Property Tax Rates

 

SB

 

 

 

ANALYST:

Neel

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

$63,500.0

$64,770.0

Recurring

Public Schools

 

($32,750.0)

($32,385.0)

Recurring

Municipalities

 

($32,750.0)

($32,385.0)

Recurring

Counties

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

LFC files

 

Responses Received From:

 

State Department of Education (SDE)

 

No Responses Received From:

 

Taxation and Revenue Department (TRD)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 166 amends statute to lower the allowable operational mill levy rates for counties and municipalities from 11.85 mills and 7.65 mills to 10.85 and 6.65 mills respectively. The allowable general operational mill levy rates for public schools off sets the reductions at a municipal and county level increasing from .50 mills to 2.50 mills. 

 

HB 166 amends the Public School Code to allow the state to take credit for 100 percent of the revenues receive by the additional 2 mills transferred from the municipalities or counties. 

 

HB 166 adds a temporary provision pursuant to Section 7-37-7.1 (yield control). The revenue due from the imposition on residential or nonresidential property for the prior year must be calculated as if the same tax rates authorized by the bill had been in effect during the prior year.

 

FISCAL IMPLICATIONS

 

HB 166 shifts operational mills from cities and counties to school districts.  These revenues are not general fund.  However, they have the potential to supplant general funds for public schools. 

 

OTHER SUBSTANTIVE ISSUES

 

Special attention should be given to New Mexico’s status as an equalized state for taking credit for federal funding under “PL 874” or Impact Aid payments.  

 

DW/prr/njw