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F I S C A L I M P A C T R E P O R T
SPONSOR Picraux
DATE TYPED 2/10/05
HB 336/aHBIC
SHORT TITLE Local Option Quality of Life Gross Receipts
SB
ANALYST Taylor
REVENUE
Estimated Revenue
FY05
FY06
Subsequent
Years Impact
Recurring
Or Non-Rec
Fund
Affected
Indeterminate Indeterminate
Indeterminate
Recurring
Local Funds
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Taxation and Revenue Department (TRD)
For the Economic and Rural Development and Telecommunications Committee
SUMMARY
Synopsis of HBIC amendments
The House Business and Industry Committee amended the bill in the following way:
1.
Minor changes are made to provisions governing the use of revenue for a class A county
with a population of more than 250 thousand (Bernalillo County): a) new language al-
lows one to three percent of revenue may be used “public education on the use of reve-
nue” where before the amendment this revenue could be used for marketing cultural pro-
grams, events and activities; b) 3 to 5 percent of revenue may dedicated to the “admini-
stration of revenue; before this read administration.
2.
A new provision is provided pertaining to the use of revenues in the municipality (Albu-
querque); it would allow a portion of the funds allocated for the purpose of enhancing
cultural programs and activities to be spent on an operating agreement with an organiza-
tion that operates a facility owned by the municipality.
These amendments do not alter the overall fiscal impact of the bill
Synopsis of original bill
House Bill 336 allows counties to impose “the quality of life gross receipts tax”. The tax must
be enacted by ordinance before January 1, 2016 and may not exceed a period of 10 years. Sub-
pg_0002
House Bill 336aHBIC -- Page 2
sequent ordinances may be enacted, and they too are limited to a ten year period. The tax may
be imposed in one-sixteenth increments but can not exceed one-fourth percent in total. Tax
revenues must be dedicated to cultural programs and activities provided either by a local gov-
ernment or by contract or agreement with non profit or publicly owned cultural organizations.
Revenues must be used to meet goals such as promoting and preserving cultural diversity; en-
hancing cultural programs and activities; and promoting culture to further economic develop-
ment. The bill states that the objective of the tax is to expand and sustain existing programs and
activities and not to replace other funding.
The bill includes specific provisions as to how a class A county with a population of more than
250 thousand (Bernalillo County) may use tax proceeds: revenue may not be used for capital
expenditures, endowments or fundraising; at least one percent but no more than 3 percent must
be used marketing cultural programs and activities; at least three percent but no more than 5 per-
cent must be dedicated for administration; and at least one percent but no more than three percent
must be used for the implementation of the cultural plan for the county and its largest city.
The bill requires that the tax be put before the voters of the county and approved by majority
vote. If approved by the voters, the tax becomes effective. If it fails, the county board may not
propose it again for at least one-year from the time of the election.
The bill requires the county board to appoint county cultural advisory board within sixty days of
an election approving the tax. The board is to consist of between nine and fifteen members with
staggered three-year terms. Members are appointed for fixed terms and may be removed only
for malfeasance. Board members may not serve for more than two consecutive terms. The board
is responsible for making budget recommendations and overseeing the distribution of funds in a
manner that is consistent with the goals of the quality of life gross receipts tax. The board is re-
quired to develop guidelines for applying and granting funds and for establishing reporting
guidelines and procedures.
The bill has no effective date. Provisions are assumed to become applicable 90 days after the
end of the 2005 legislative session.
FISCAL IMPLICATIONS
The fiscal impact of this bill is limited to counties. The size of the impact is indeterminate since
it is unknown how many counties would choose to propose the tax and whether voters in those
counties would approve it. TRD submitted a table showing the maximum revenues counties
could possibly raise. The table is attached.
ADMINISTRATIVE IMPLICATIONS
TRD indicated that the administrative implications would be modest and could be absorbed with
existing resources.
SUBSTANTIVE ISSUES
TRD reported the following issue:
The bill states that an election shall be called within ninety days of the date the ordinance
is adopted on the question of imposing the quality of life gross receipts tax. Section 7-
20E-3 NMSA 1978 states that a tax authorized by the County Local Option Gross Re-
pg_0003
House Bill 336aHBIC -- Page 3
ceipts Taxes Act shall be called within seventy-five days of the date the ordinance is
adopted.
BT/sb:lg
Attachment
pg_0004
House Bill 336aHBIC -- Page 4
ATTACHMENT
This table was submitted by the Taxation and Revenue Department.
Potential Revenue Attributable to a 0.25% Quality of Life GRT Option
(Based on FY 2004 tax base. Revenue in a future period may be higher due to tax base growth)
Taxable
Total Potential Revenue: Local
TRD
Gross Receipts
Quality of Life
Government Admin.
County / City
(FY 2004) Gross Receipts Tax (0.25%) Revenue
Fees
Bernalillo (Remainder)
1,576,053,550 3,940,134 3,821,930
118,204
Albuquerque
12,260,458,694 30,651,147 29,731,612
919,534
State Fairgrounds (Rmndr) 14,208,122 35,520 34,455
1,066
Los Ranchos de Albuq.
67,669,835 169,175 164,099
5,075
Tijeras
27,349,483 68,374 66,322
2,051
Corrales (1)
24,480,898 61,202 59,366
1,836
Rio Rancho (2)
110,387,137 275,968 267,689
8,279
County Total
14,080,607,719 35,201,519 34,145,474
1,056,046
Catron (Remainder)
28,346,111 70,865 68,739
2,126
Reserve
5,226,784 13,067 12,675
392
County Total
33,572,895 83,932 81,414
2,518
Chaves (Remainder)
111,875,447 279,689 271,298
8,391
Roswell
697,398,307 1,743,496 1,691,191
52,305
Dexter
18,115,139 45,288 43,929
1,359
Hagerman
10,626,386 26,566 25,769
797
Lake Arthur
1,653,512 4,134 4,010
124
County Total
839,668,791 2,099,172 2,036,197
62,975
Cibola (Remainder)
36,183,982 90,460 87,746
2,714
Milan
59,039,883 147,600 143,172
4,428
Grants
152,163,408 380,409 368,996
11,412
County Total
247,387,273 618,468 599,914
18,554
Colfax (Remainder)
50,346,629 125,867 122,091
3,776
Raton
108,466,812 271,167 263,032
8,135
Maxwell
1,674,494 4,186 4,061
126
Springer
8,838,849 22,097 21,434
663
Cimarron
7,727,967 19,320 18,740
580
Eagle Nest
5,054,031 12,635 12,256
379
Angel Fire
67,196,409 167,991 162,951
5,040
County Total
249,305,191 623,263 604,565
18,698
pg_0005
House Bill 336aHBIC -- Page 5
Taxable
Total Potential Revenue: Local
TRD
Gross Receipts
Quality of Life
Government Admin.
County / City
(FY 2004) Gross Receipts Tax (0.25%) Revenue
Fees
Curry (Remainder)
80,500,889 201,252 195,215
6,038
Clovis
586,865,693 1,467,164 1,423,149
44,015
Clovis Airport (Rmndr)
4,812,300 12,031 11,670
361
Grady
1,237,849 3,095 3,002
93
Texico
5,716,266 14,291 13,862
429
Melrose
4,321,976 10,805 10,481
324
County Total
683,454,973 1,708,637 1,657,378
51,259
De Baca (Remainder)
6,518,948 16,297 15,808
489
Fort Sumner
12,421,480 31,054 30,122
932
County Total
18,940,428 47,351 45,931
1,421
Dona Ana (Remainder)
520,628,800 1,301,572 1,262,525
39,047
Las Cruces
1,784,684,051 4,461,710 4,327,859
133,851
Hatch
25,259,725 63,149 61,255
1,894
Mesilla
26,572,830 66,432 64,439
1,993
Sunland Park
92,800,422 232,001 225,041
6,960
County Total
2,449,945,828 6,124,865 5,941,119
183,746
Eddy (Remainder)
502,486,183 1,256,215 1,218,529
37,686
Carlsbad
488,937,670 1,222,344 1,185,674
36,670
Artesia
282,538,744 706,347 685,156
21,190
Hope
1,763,758 4,409 4,277
132
Loving
9,581,104 23,953 23,234
719
County Total
1,285,307,459 3,213,269 3,116,871
96,398
Grant (Remainder)
102,600,969 256,502 248,807
7,695
Silver City
251,392,704 628,482 609,627
18,854
Bayard
12,843,372 32,108 31,145
963
Santa Clara
4,896,273 12,241 11,873
367
Hurley
3,857,924 9,645 9,355
289
County Total
375,591,242 938,978 910,809
28,169
Guadalupe (remainder)
13,257,756 33,144 32,150
994
Santa Rosa
45,299,125 113,248 109,850
3,397
Vaughn
5,149,312 12,873 12,487
386
County Total
63,706,193 159,265 154,488
4,778
Harding (Remainder)
1,534,223 3,836 3,720
115
Roy
3,867,465 9,669 9,379
290
Mosquero (3)
660,233 1,651 1,601
50
County Total
6,061,921 15,155 14,700
455
pg_0006
House Bill 336aHBIC -- Page 6
Taxable
Total Potential Revenue: Local
TRD
Gross Receipts
Quality of Life
Government Admin.
County / City
(FY 2004) Gross Receipts Tax (0.25%) Revenue
Fees
Hidalgo (Remainder)
25,013,581 62,534 60,658
1,876
Lordsburg
41,847,820 104,620 101,481
3,139
Virden
139,603 349 339
10
County Total
67,001,004 167,503 162,477
5,025
Lea (Remainder)
428,121,157 1,070,303 1,038,194
32,109
Hobbs
848,245,491 2,120,614 2,056,995
63,618
Lovington Industrial Park (Rmndr) 14,389,400 35,974 34,894
1,079
Eunice
55,001,776 137,504 133,379
4,125
Jal
19,146,385 47,866 46,430
1,436
Lovington
130,982,033 327,455 317,631
9,824
Tatum
11,464,136 28,660 27,801
860
County Total
1,507,350,378 3,768,376 3,655,325
113,051
Lincoln (Remainder)
122,103,488 305,259 296,101
9,158
Ruidoso
204,185,567 510,464 495,150
15,314
Capitan
13,678,431 34,196 33,170
1,026
Carrizozo
9,478,811 23,697 22,986
711
Corona
2,525,848 6,315 6,125
189
Ruidoso Downs
87,414,445 218,536 211,980
6,556
County Total
439,386,590 1,098,466 1,065,512
32,954
Los Alamos (Remainder)
- - - -
Los Alamos
796,545,760 1,991,364 1,931,623
59,741
County Total
796,545,760 1,991,364 1,931,623
59,741
Luna (Remainder)
44,600,808 111,502 108,157
3,345
Deming
186,591,640 466,479 452,485
13,994
Deming Industrial Park (Rmndr) 95,229,160 238,073 230,931
7,142
Columbus
5,344,662 13,362 12,961
401
County Total
331,766,270 829,416 804,533
24,882
McKinley (Remainder)
351,151,893 877,880 851,543
26,336
Gallup
579,457,104 1,448,643 1,405,183
43,459
County Total
930,608,997 2,326,522 2,256,727
69,796
Mora (Remainder)
21,645,005 54,113 52,489
1,623
Wagon Mound
10,710,419 26,776 25,973
803
County Total
32,355,424 80,889 78,462
2,427
pg_0007
House Bill 336aHBIC -- Page 7
Taxable
Total Potential Revenue: Local
TRD
Gross Receipts
Quality of Life
Government Admin.
County / City
(FY 2004) Gross Receipts Tax (0.25%) Revenue
Fees
San Juan (Remainder)
1,163,750,363 2,909,376 2,822,095
87,281
Aztec
104,792,261 261,981 254,121
7,859
Farmington
1,590,587,588 3,976,469 3,857,175
119,294
Bloomfield
111,815,962 279,540 271,154
8,386
County Total
2,970,946,174 7,427,365 7,204,544
222,821
San Miguel (Remainder)
38,443,007 96,108 93,224
2,883
Las Vegas
234,367,770 585,919 568,342
17,578
Pecos
7,822,543 19,556 18,970
587
Mosquero (3)
76,978 192 187
6
County Total
280,710,298 701,776 680,722
21,053
Santa Fe (remainder)
569,467,553 1,423,669 1,380,959
42,710
Santa Fe
2,657,025,667 6,642,564 6,443,287
199,277
Santa Fe Airport (remainder) 11,958,261 29,896 28,999
897
Edgewood
53,814,520 134,536 130,500
4,036
Espanola (4)
41,623,280 104,058 100,936
3,122
County Total
3,333,889,281 8,334,723 8,084,682
250,042
Sierra (Remainder)
30,211,337 75,528 73,262
2,266
Truth or Consequences
78,891,611 197,229 191,312
5,917
T or C Airport (rmndr)
321,120 803 779
24
Williamsburg
2,050,945 5,127 4,974
154
Elephant Butte
11,183,975 27,960 27,121
839
County Total
122,658,988 306,647 297,448
9,199
Socorro (Remainder)
30,795,993 76,990 74,680
2,310
Socorro
106,635,779 266,589 258,592
7,998
Socorro Industrial Park (Rmndr) 1,194,535 2,986 2,897
90
Magdalena
7,819,887 19,550 18,963
586
County Total
146,446,194 366,115 355,132
10,983
Taos (Remainder)
148,899,651 372,249 361,082
11,167
Taos
332,527,612 831,319 806,379
24,940
Questa Airport (Rmndr)
1,479,324 3,698 3,587
111
Taos Airport (Rmndr)
1,746,346 4,366 4,235
131
Questa
9,415,178 23,538 22,832
706
Red River
33,858,445 84,646 82,107
2,539
Taos Ski Valley
40,562,105 101,405 98,363
3,042
County Total
568,488,661 1,421,222 1,378,585
42,637
pg_0008
House Bill 336aHBIC -- Page 8
Taxable
Total Potential Revenue: Local
TRD
Gross Receipts
Quality of Life
Government Admin.
County / City
(FY 2004) Gross Receipts Tax (0.25%) Revenue
Fees
Torrance (Remainder)
54,347,531 135,869 131,793
4,076
Mountainair
7,114,682 17,787 17,253
534
Moriarty Airport (Rmndr)
682,721 1,707 1,656
51
Moriarty
59,804,666 149,512 145,026
4,485
Willard
899,071 2,248 2,180
67
Encino
837,519 2,094 2,031
63
Estancia
27,059,501 67,649 65,619
2,029
County Total
150,745,691 376,864 365,558
11,306
Union (Remainder)
27,517,065 68,793 66,729
2,064
Clayton
32,870,413 82,176 79,711
2,465
Des Moines
2,534,388 6,336 6,146
190
Grenville
99,342 248 241
7
Folsom
243,230 608 590
18
County Total
63,264,438 158,161 153,416
4,745
Valencia (Remainder)
122,274,700 305,687 296,516
9,171
Belen
191,839,707 479,599 465,211
14,388
Alexander Airport (Rmndr) 421,471 1,054 1,022
32
Los Lunas
252,177,636 630,444 611,531
18,913
Bosque Farms
29,028,478 72,571 70,394
2,177
County Total
595,741,992 1,489,355 1,444,674
44,681
TOTAL
35,046,922,747 87,617,307 84,988,788
2,628,519
NOTES:
(1) Corrales lies within both Bernalillo County and Sandoval County. Gross receipts amounts are shown separately.
(2) Rio Rancho lies within both Bernalillo County and Sandoval County. Gross receipts amounts are shown separately.
(3) Mosquero lies within both Harding County and San Miguel County. Gross receipts amounts are shown separately.
(4) Espanola lies within both Rio Arriba County and Santa Fe County. Gross receipts amounts are shown separately.