Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

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

 

 

 

SPONSOR

Garcia, MH

DATE TYPED

2/18/04

HB

297/aHTRC/aHAFC

 

SHORT TITLE

Racetrack Gaming Revenue Distribution

SB

 

 

 

 

ANALYST

Neel

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

 

 

 

 

(200.0)

(210.0)

Recurring

General Fund

 

200.0

210.0

Recurring

Sunland Park

 

 

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

Relates to:

SB140, Racetrack Revenue Distribution

 

SOURCES OF INFORMATION

LFC Files

 

Responses Received From:

Gaming Control Board (GCB)

Attorney General Office (AGO)

Taxation and Revenue Department (TRD)

 

SUMMARY

 

 Synopsis of HAFC Amendment

 

The House Appropriation and Finance Committee amendment reduces the distribution to Sunland Park to 1 percent.  

 

Synopsis of HTRC Amendment

 

The House Taxation and Revenue Committee amendment deletes reference to most recent census and replaces it with 2000 census, thereby maintaining the benefits given to Sunland Park.   

 

Synopsis of Original Bill

 

House Bill 297 amends statute to make 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.

 

Significant Issues

 

TRD notes the following significant issues from an analysis of a 2003 analysis:

 

  • 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. 

 

  • 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 Sunland Park relative to revenue the city currently receives.  Gross receipts tax revenue distributed to Sunland Park was just over $2 million in fiscal year 2002. 

 

SN/yr:lg