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|
SPONSOR: |
Picraux |
DATE TYPED: |
|
HB |
954 |
||
|
SHORT TITLE: |
Increase Cigarette Tax |
SB |
|
||||
|
|
ANALYST: |
Williams |
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APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
|
FY03 |
FY04 |
FY03 |
FY04 |
|
|
|
|
$22,429.0 |
|
|
Recurring |
UNM
HSC |
|
|
|
|
|
|
|
(Parenthesis
( ) Indicate Expenditure Decreases)
REVENUE
|
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
|
FY03 |
FY04 |
|
|
|
|
|
$10,549.0 |
$11,508.0 |
Recurring |
General
Fund |
|
|
$22,429.0 |
$24,468.0 |
Recurring |
|
|
|
|
|
|
|
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates SB 804
Relates to SB 292, SB 336, SB528, SB 717, SB
804, SB 835
HB 488, HB 954
SB 656/HB 558:
Amend Hospital Funding Act
LFC Files
Responses
Received From
Taxation
and Revenue Department (TRD)
Health
Policy Commission (HPC)
Human
Services Department (HSD)
SUMMARY
Synopsis
of Bill
House Bill 954
authorizes an increase in the cigarette tax from the current $0.21 per pack to
$0.71 per pack and authorizes two new distributions, 26.3 percent and 18.41
percent of net receipts attributable to the tax, to the New Mexico Finance
Authority for the UNM HSC. Current
cigarette tax distributions to all funds other than the General Fund are
adjusted to hold them harmless compared to projected FY04 revenue levels.
The bill authorizes
the New Mexico Finance Authority to issue revenue bonds of up to $80 million
for design, construction, equipping and furnishing additions and improvements
at the UNM HSC. The two new
distributions of the cigarette tax are authorized to be pledged as a revenue
stream to repay bond holders as well as for issuance, sale and administration
costs associated with the bonds. Any
balance remaining, after all bond obligations are met, would be appropriated on
a monthly basis to UNM HSC.
Upon repayment of the
bonds, the two new distributions would be redirected at 26.3 percent to the UNM
HSC and 18.41 percent to the General Fund.
The legislation
directs statutory changes to cigarette tax imposition, collection or
distribution could not be enacted until the revenue bond holders are completely
paid. The New Mexico Finance Authority
is authorized to pledge funds in the public project revolving fund to these revenue
bonds if necessary.
Significant
Issues
Because the cigarette tax is increased and the
General Fund distribution share is not specified in statute, but rather
determined as a residual after other distributions, this bill would increase General
Fund revenues as well as provide a pledged revenue stream for the UNM HSC for
$80 million of bond issuance.
FISCAL IMPLICATIONS
The bill would
generate additional recurring general fund revenues through the cigarette tax
of $10,549.0 in FY 04, with a full year increase of $11,508.0. In addition, $22,429.0 of additional
recurring revenue in FY 04 would be generated for New Mexico Finance Authority
to pledge to a revenue bond issuance for UNM HSC. Full year impacts of
additional recurring revenue for the project is projected at
$24,468.0.
AW/prr