HGUAC/HB 274

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AN ACT

RELATING TO TAXATION; AUTHORIZING IMPOSITION OF ADDITIONAL

HEALTH CARE GROSS RECEIPTS TAX IN CERTAIN COUNTIES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 7-20E-18 NMSA 1978 (being Laws 1991,

Chapter 212, Section 7, as amended) is amended to read:

"7-20E-18. COUNTY HEALTH CARE GROSS RECEIPTS TAX--

AUTHORITY TO IMPOSE RATE.--

A. The majority of the members of the governing

body of any county may enact an ordinance imposing an excise

tax at a rate of one-sixteenth percent of the gross receipts

of any person engaging in business in the county for the

privilege of engaging in business in the county. Any

ordinance imposing an excise tax pursuant to this section

shall not be subject to a referendum. The governing body of a

county shall, at the time of enacting an ordinance imposing

the tax, dedicate the revenue to the county-supported medicaid

fund. This tax is to be referred to as the "county health

care gross receipts tax".

B. In addition to the imposition of the county

health care gross receipts tax authorized by Subsection A of

this section, the majority of the members of the governing

body of a county having a population of more than five hundred

thousand persons according to the most recent federal

decennial census may enact an ordinance imposing an additional

one-sixteenth percent increment of county health care gross

receipts tax; provided that the imposition of the additional

increment shall be for a period that ends no later than June

30, 2009. The governing body of the county shall, at the time

of enacting an ordinance imposing the additional increment of

county health care gross receipts tax, dedicate the revenue to

the support of indigent patients.

C. Any ordinance enacted pursuant to the

provisions of Subsection A or B of this section shall include

an effective date of either July 1 or January 1 in accordance

with the provisions of the County Local Option Gross Receipts

Taxes Act."

Section 2. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2006.

HGUAC/HB 274

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