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SPONSOR: |
Begaye |
DATE TYPED: |
2/7/03 |
HB |
214 |
||
SHORT TITLE: |
Amend |
SB |
|
||||
|
ANALYST: |
Smith |
|||||
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
|
1,350.0 |
Recurring |
|
|
|
40.0 |
Recurring |
TRIMS/NMFA Administrative
Fees (1) |
(Parenthesis ( ) Indicate Revenue Decreases)
Responses
Received From
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis
of Bill
House Bill 214 adds
FISCAL
IMPLICATIONS
The table above
illustrates the revenue San Juan County could have generated in fiscal year
2002, had the tax been imposed at the maximum .5% rate. The 3% TRD
administrative fees are directed to TRIMS bonds issued through the NMFA through
December 2006 or the date the bonds are fully discharged. After that date, TRD administrative fees are
directed to the State General Fund.
OTHER
SUBSTANTIVE ISSUES
TRD
makes the following observations:
·
·
Creation or expansion of local option taxes of this sort,
particularly at the tax rate level of up to .5%, may inhibit the ability of the
state to raise revenue from the gross receipts tax, assuming there is a maximum
tax rate the public will tolerate.
·
Since
this local option tax is designed to be pledged toward special obligation
bonds, and no legislative action may interfere with existing bonds, the
legislature might find its options somewhat more limited when dealing with
gross receipts tax issues in the future.
Virtually every type of authorized local option gross receipts tax, as
well as the 1.225% amount shared by the state with municipal governments, has
been pledged toward bonds by one local government or another.
SS/prr