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SPONSOR: |
Taylor, TC |
DATE TYPED: |
|
HB |
562 |
||
SHORT TITLE: |
Municipality Compensating Tax Distribution |
SB |
|
||||
|
ANALYST: |
Neel |
|||||
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
($12,700.0) |
($12,700.0) |
Recurring |
General
Fund |
|
$12,700.0 |
$12,700.0 |
Recurring |
Municipalities |
(Parenthesis ( ) Indicate Revenue Decreases)
LFC files
Responses
Received From
Taxation
and Revenue Department (TRD)
SUMMARY
Synopsis
of Bill
House
Bill 562 amends statute to allow for a new distribution to municipalities
funded by compensating tax collections, which are taxes levied to protect
Significant
Issues
Currently, 20% of net compensating tax collections go to small cities and small counties assistance funds.
FISCAL IMPLICATIONS
According
to TRD analysis, the new distribution will expend slightly more than 26% of
annual net compensating tax collections.
Fiscal year 2004 net compensating tax collections are expected to be
$47.5 million.
An
estimate of fiscal year 2004 distribution amounts is included at the end of
this review. An estimated 61 municipalities will be paid the $18,000 annual
floor amount, and the remainder a calculated share amount (attached below is
municipal distributions under HB 562).
ADMINISTRATIVE IMPLICATIONS
TRD notes the provisions in this bill would
place a significant administrative burden on the department. Computer system
changes are necessary to make the appropriate local revenue distributions. Reprogramming the system is possible. However, the department is in the
process of converting to a new computer system for processing gross receipts
tax. The changes required by this bill
would have to be implemented in the new system.
This system is currently scheduled to become operational in October
2003. Thus, it is unlikely
the department will be able to implement the changes by the
Estimated Fiscal Year 2004
Municipal Compensating Tax Distributions
|
|||
|
198,398 |
Lordsburg |
21,540 |
|
5,176,669 |
|
294,031 |
Angel Fire |
26,251 |
Los Lunas |
80,984 |
Artesia |
129,480 |
Los Ranchos de Albuq. |
26,673 |
Aztec |
41,785 |
|
27,045 |
Belen |
93,280 |
Moriarty |
26,931 |
Bernalillo |
31,053 |
Portales |
64,884 |
|
42,386 |
Raton |
51,474 |
|
218,020 |
|
266,797 |
|
230,819 |
|
318,722 |
Corrales |
26,562 |
Ruidoso |
91,136 |
Deming |
78,456 |
Ruidoso Downs |
38,161 |
|
23,089 |
|
1,167,539 |
Espanola |
117,375 |
|
26,577 |
Eunice |
19,791 |
|
115,675 |
|
717,107 |
Socorro |
43,975 |
|
249,719 |
|
36,856 |
Grants |
63,795 |
|
138,791 |
|
366,884 |
Truth or Consequences |
36,844 |
|
734,524 |
Tucumcari |
41,096 |
|
108,773 |
61 Remaining Municipalities |
1,098,000 |
|
|
Total |
12,707,948 |
SN/njw