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committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

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

SPONSOR Leavell

DATE TYPED 02/15/05 HB

SHORT TITLE “Project” in Industrial Revenue Bond Act

SB 501

ANALYST Taylor

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

NFI

NFI

NFI

Recurring

Local Funds

NFI

NFI

NFI

Recurring State G.O. Bonding

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates HB 322

SOURCES OF INFORMATION

LFC Files

Taxation and Revenue Department (TRD)

SUMMARY

Senate Bill 501 amends the Industrial revenue bond act by adding to the definition of “project”.

The definition of project is amended to add urban transit buses, whether or nor not already in ex-

istence that are: manufactured or assembled in New Mexico, equipped to hold at lest 30 passen-

ger and suitable for use by a commercial enterprise for leasing.

The bill carries an emergency clause, making provisions effective upon signature by the Gover-

nor.

FISCAL IMPLICATIONS

TRD reported the following fiscal impact report:

Provisions of the proposed measure would impose no significant fiscal impacts on state or local

governments. They would most likely shift property tax obligations from entities that are recipi-

ents of industrial revenue bond financing to entities that are not, via very small and essentially

imperceptible property tax rate changes. Effects would be primarily local, although a very small

reduction in state bonding authority would probably result from the proposed statute.

ADMINISTRATIVE ISSUES

TRD reports that there are no significant administrative issues associated with this legislation.

BT/yr