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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Fidel

 

DATE TYPED:

03/06/03

 

HB

 

 

SHORT TITLE:

Tax Receipts for County Hospitals

 

SB

713

 

 

ANALYST:

Smith

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

NFI

 

 

General Fund

 

(*)

(*)

Recurring

Cibola County

 

*

*

Recurring

City of Grants

 

 

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

 

Responses Received From

 

Taxation and Revenue Department (TRD)

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 713 redirects proceeds from certain local option taxes from Cibola County to the city of Grants.  Specifically, the bill redirects proceeds from the following taxes:

 

·        second one-eighth percent (.125%) of county local option gross receipts tax,

·        .125% special county hospital gross receipts tax,

·        .5% local hospital gross receipts tax, and

·        the special county hospital gasoline tax, which may be imposed on gasoline sold at retail in the county at a rate of $.01 or $.02.per gallon.  

 

Revenue from these taxes are to be used by the city to operate and maintain a hospital. 

 

 

FISCAL IMPLICATIONS

 

TRD notes that, of the relevant local option taxes, only the .5% local hospital gross receipts tax is currently imposed by Cibola County.  

 

TECHNICAL ISSUES

 

TRD states that rather than further complicating state tax statutes and administration, it seems the proposed distribution scheme could be handled via a separate “funds distribution” agreement between the county and the municipality.

 

OTHER SUBSTANTIVE ISSUES

 

TRD has provided the following table.

 

Potential Revenue to City of Grants—FY 2002 Illustration

County Local Option (.125%)

Special County Hospital (.125%)

Local Hospital (.5%)

Special County Hospital Gasoline ($.02)

Total

$277,000

$277,000

$1,110,000

$280,000*

$1,944,000

 

SS/prr