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 also 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

HCPAC

DATE TYPED

2-16-04

HB

611/HCPACS

 

SHORT TITLE

Property Tax Authorization for Health Purposes

SB

 

 

 

ANALYST

Taylor

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

 

Indeterminate

Indeterminate

Recurring

County Governments

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

LFC Files

 

SUMMARY

 

            Synopsis of Bill

 

HB 611 would allow a county with a population between 41,000 and 45,000 in the last decennial census (Rio Arriba county population 41,190 in 2000) to submit a property tax increase to the voters for the purpose of providing health care to sick and indigent persons in the county.  The county would have to put the question to voters in either a general or special election.  The tax would be limited to no more than 8 years.

 

The proposed property tax increase could not exceed $1.50 per thousand dollars of net taxable value.  This mill levy would not be subject to rate limitations.

 

FISCAL IMPLICATIONS

 

The fiscal impact of this bill is indeterminate because it is not known if the county would try to impose the tax, what rate it would choose and whether the voters would approve or not.  If the county decided to impose the maximum rate of $1.50 per thousand, the tax could be expected to raise $1.14 million or more. This is equal to the county’s assessed valued of $760 million as fiscal year 2000 multiplied by 0.0015 (1.5/1000).  Given that property values have grown, the maximum impact actually should be somewhat larger, perhaps $1.3 million or so.

 

OTHER SUBSTANTIVE ISSUES

 

The bill stipulates that the purpose of the tax is to provide health care to sick and indigent persons.  However, no definition as to who would qualify is provided.  No administrative agency is named to determine who would qualify, how much assistance would be provided etc.

 

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