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.
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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 2/20/05
HB
SHORT TITLE Gross Receipts Distribution for Hospitals
SB 604
ANALYST Taylor
REVENUE
Estimated Revenue
Subsequent
Years Impact
Recurring
or Non-Rec
Fund
Affected
FY05
FY06
NFI
Similar Recurring
Grant County
NFI
Similar Recurring
City of Grants
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Taxation and Revenue Department (TRD)
SUMMARY
Senate Bill 604 strides provisions in current law that redirected certain local option taxes from
Grant County to the largest city in the county-Grants. The redirected revenue include that attrib-
utable to:
The second one-eighth percent local option increment;
The special county hospital gross receipts tax;
The local hospital gross receipts tax; and
The special county hospital gasoline tax.
The bill also strikes language authorizing the City of Grants to use local hospital gross receipts
tax and special county hospital gasoline tax revenue for the maintaining and operating a hospital.
This revenue would now be 0. used by the county for the purpose of operating and maintaining a
hospital.
The bill has an effective date of July 1, 2005.
FISCAL IMPLICATIONS
TRD reports that bill would have no fiscal impact. This is because the bill passed in 2003, which
changed the distribution from the county to the city, included a provision preventing the redistri-
pg_0002
Senate Bill 604 -- Page 2
bution if the county had committed the revenue for debt. The department reports that since the
county, in fact, did have such obligations, no redistribution took place, and these revenues are
still distributed to Grant county.
ADMINISTRATIVE IMPLICATIONS
TRD reports that the bill would have no significant administrative implications.
BT/yr