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|
SPONSOR: |
Garcia |
DATE
TYPED: |
|
HB |
364/aHTRC |
||
|
SHORT
TITLE: |
Racetrack
Gaming Revenue to Municipalities |
SB |
|
||||
|
|
ANALYST: |
Smith |
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REVENUE
|
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
|
FY03 |
FY04 |
|
|
|
|
|
(200.0) |
|
Recurring |
General Fund |
|
|
200.0 |
|
Recurring |
|
(Parenthesis
( ) Indicate Revenue Decreases)
LFC
Files
SUMMARY
Synopsis of HTRC
Amendment
The
House Taxation and Revenue Committee amendment changes the distribution from 4%
to 0.7%.
Synopsis of Original Bill
House Bill 364 makes a distribution to Sunland Park in an
amount equal to four percent (4.0%) of the net receipts attributable to the
gaming tax paid by the racetrack gaming operator licensee in that
location. The revenue is to be used for
acquisition, construction or improvement of local government infrastructure or
for providing police and fire protection services.
FISCAL
IMPLICATIONS
The gaming tax imposed
on for-profit gaming operator licensees is equal to twenty-five percent (25%)
of their net take. The tax is equal to
10% of a non-profit licensee’s net take.
Gaming tax collections for fiscal year 2002 equaled nearly $29 million.
The consensus revenue estimating group expects net collections from the gaming
tax to total $42 million by fiscal year 2004. Under present law, 100% of gaming
tax collections are directed to the state general fund.
OTHER
SUBSTANTIVE ISSUES
·
Section
60-1-15.2 NMSA 1978 guarantees that municipalities with horse racetracks operating
within their boundaries receive at least $50,000 to provide for additional
municipal services required by the tracks.
Section 60-1-15.2 provides a special distribution to make up any
difference between the amount municipalities receive from local option gross
receipts taxes imposed on horse racetracks and the guaranteed amount.
·
This
proposal would result in a significant increase in revenue for