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AN ACT

RELATING TO TAXATION; ADDING CERTAIN COUNTIES TO THOSE

CURRENTLY ELIGIBLE TO IMPOSE A LOCAL HOSPITAL GROSS RECEIPTS

TAX.

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

Section 1. Section 7-20C-2 NMSA 1978 (being Laws 1991,

Chapter 176, Section 2, as amended) is amended to read:

"7-20C-2. DEFINITIONS.--As used in the Local Hospital

Gross Receipts Tax Act:

A. "county" means:

(1) a class B county having a population of

less than twenty-five thousand according to the most recent

federal decennial census and having a net taxable value for

rate-setting purposes for the 1990 property tax year or any

subsequent year of more than two hundred fifty million dollars

($250,000,000);

(2) a class B county having a population of

less than forty-seven thousand but more than forty-four

thousand according to the 1990 federal decennial census and

having a net taxable value for rate-setting purposes for the

1992 property tax year of more than three hundred million

dollars ($300,000,000) but less than six hundred million

dollars ($600,000,000);

(3) a class B county having a population of

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less than ten thousand according to the most recent federal

decennial census and having a net taxable value for rate-

setting purposes for the 1990 property tax year or any

subsequent year of more than one hundred million dollars

($100,000,000);

(4) a class B county having a population of

less than twenty-five thousand according to the 1990 federal

decennial census and having a net taxable value for rate-

setting purposes for the 1993 property tax year of more than

ninety-one million dollars ($91,000,000) but less than one

hundred twenty-five million dollars ($125,000,000);

(5) a class B county having a population of

more than seventeen thousand but less than twenty thousand

according to the 1990 federal decennial census and having a

net taxable value for rate-setting purposes for the 1993

property tax year of more than one hundred fifty-three million

dollars ($153,000,000) but less than one hundred fifty-six

million dollars ($156,000,000);

(6) a class B county having a population of

more than fifteen thousand according to the 1990 federal

decennial census and having a net taxable value for rate-

setting purposes for the 1996 property tax year of more than

one hundred fifty million dollars ($150,000,000) but less than

one hundred seventy-five million dollars ($175,000,000);

(7) an H class county;

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(8) a class A county having a population of

less than one hundred fifteen thousand according to the 2000

federal decennial census or any subsequent federal decennial

census and having a net taxable value for rate-setting

purposes for the 2001 property tax year or any subsequent year

of more than three billion dollars ($3,000,000,000); or

(9) a class B county having a population of

more than three thousand five hundred but less than ten

thousand five hundred according to the 2000 federal decennial

census or any subsequent federal decennial census and having a

net taxable value for rate-setting purposes for the 2005

property tax year or any subsequent year of more than one

hundred million dollars ($100,000,000) and less than one

hundred sixteen million five hundred thousand dollars

($116,500,000);

B. "department" means the taxation and revenue

department, the secretary of taxation and revenue or any

employee of the department exercising authority lawfully

delegated to that employee by the secretary;

C. "governing body" means the board of county

commissioners of a county;

D. "health care facilities contract" means an

agreement between a hospital or health clinic not owned by the

county and a county imposing the tax authorized by the Local

Hospital Gross Receipts Tax Act that obligates the county to

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pay to the hospital revenue generated by the tax authorized in

that act as consideration for the agreement by the hospital or

health clinic to use the funds only for nonsectarian purposes

and to make health care services available for the benefit of

the county;

E. "hospital facility revenues" means all or a

portion of the revenues derived from a lease of a hospital

facility acquired, constructed or equipped pursuant to and

operated in accordance with the Local Hospital Gross Receipts

Tax Act;

F. "local hospital gross receipts tax" means the

tax authorized to be imposed under the Local Hospital Gross

Receipts Tax Act;

G. "person" means an individual or any other legal

entity; and

H. "state gross receipts tax" means the gross

receipts tax imposed under the Gross Receipts and Compensating

Tax Act."

Section 2. Section 7-20C-3 NMSA 1978 (being Laws 1991,

Chapter 176, Section 3, as amended) is amended to read:

"7-20C-3. LOCAL HOSPITAL GROSS RECEIPTS TAX--AUTHORITY

TO IMPOSE--ORDINANCE REQUIREMENTS.--

A. A majority of the members elected to the

governing body of a county may enact an ordinance imposing an

excise tax on a person engaging in business in the county for

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the privilege of engaging in business. This tax is to be

referred to as the "local hospital gross receipts tax". The

rate of the tax shall be:

(1) one-half of one percent of the gross

receipts of the person engaging in business if the tax is

initially imposed before January 1, 1993;

(2) one-eighth of one percent of the gross

receipts of the person engaging in business if the tax is

initially imposed after January 1, 1993; and

(3) a rate not to exceed one-half of one

percent of the gross receipts of the person engaging in

business if the tax is imposed after July 1, 1996 in a county

described in Paragraph (4), (6), (7), (8) or (9) of Subsection

A of Section 7-20C-2 NMSA 1978; provided the tax may be

imposed in any number of increments of one-eighth percent not

to exceed an aggregate rate of one-half of one percent of

gross receipts.

B. The local hospital gross receipts tax imposed

initially before January 1, 1993 shall be imposed only once

for the period necessary for payment of the principal and

interest on revenue bonds issued to accomplish the purpose for

which the revenue is dedicated, but the period shall not

exceed ten years from the effective date of the ordinance

imposing the tax. The local hospital gross receipts tax

imposed after July 1, 1996 in a county described in Paragraph

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(4) or (8) of Subsection A of Section 7-20C-2 NMSA 1978 shall

be imposed only once for the period necessary for payment of

the principal and interest on revenue bonds issued to

accomplish the purpose for which the revenue is dedicated, but

the period shall not exceed forty years from the effective

date of the ordinance imposing the tax.

C. No local hospital gross receipts tax authorized

in Subsection A of this section shall be imposed initially

after January 1, 1993 in a county described in Paragraph (2),

(3) or (5) of Subsection A of Section 7-20C-2 NMSA 1978

unless:

(1) in a county described in Paragraph (2)

of Subsection A of Section 7-20C-2 NMSA 1978, the voters of

the county have approved the issuance of general obligation

bonds of the county sufficient to pay at least one half of the

costs of the county hospital facility or county twenty-four-

hour urgent care or emergency facility for which the local

hospital gross receipts tax revenues are dedicated, including

the costs of all acquisition, renovation and equipping of the

facility; or

(2) in a county described in Paragraph (3)

or (5) of Subsection A of Section 7-20C-2 NMSA 1978, the

county will not have in effect at the same time a county

hospital emergency gross receipts tax and the voters of the

county have approved the imposition of a property tax at a

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rate of one dollar ($1.00) on each one thousand dollars

($1,000) of taxable value of property in the county for the

purpose of operation and maintenance of a hospital owned by

the county and operated and maintained either by the county or

by another party pursuant to a lease with the county.

D. The governing body of a county enacting an

ordinance imposing a local hospital gross receipts tax shall

dedicate the revenue from the tax as provided in this

subsection. In any election held, the ballot shall clearly

state the purpose to which the revenue will be dedicated and

the revenue shall be used by the county for that purpose. The

revenue shall be dedicated as follows:

(1) prior to January 1, 1993, the governing

body, at the time of enacting an ordinance imposing the rate

of the tax authorized in Subsection A of this section, shall

dedicate the revenue for acquisition of land for and the

design, construction, equipping and furnishing of a county

hospital facility to be operated by the county or operated and

maintained by another party pursuant to a lease with the

county;

(2) if the governing body of a county

described in Paragraph (2), (3) or (5) of Subsection A of

Section 7-20C-2 NMSA 1978 is enacting the ordinance imposing

the tax after July 1, 1993, the governing body shall dedicate

the revenue for acquisition, renovation and equipping of a

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building for a county hospital facility or a county twenty-

four-hour urgent care or emergency facility or for operation

and maintenance of that facility, whether operated and

maintained by the county or by another party pursuant to a

lease or management contract with the county, for the period

of time the tax is imposed not to exceed ten years;

(3) if the governing body of a county

described in Paragraph (4) or (8) of Subsection A of Section

7-20C-2 NMSA 1978 is enacting the ordinance imposing the tax

after July 1, 1995, the governing body shall dedicate the

revenue for acquisition of land or buildings for and the

renovation, design, construction, equipping or furnishing of a

county hospital facility or health clinic to be operated by

the county or operated and maintained by another party

pursuant to a health care facilities contract, lease or

management contract with the county;

(4) if the governing body of a county

described in Paragraph (6) or (9) of Subsection A of Section

7-20C-2 NMSA 1978 is enacting the ordinance imposing the tax

after July 1, 1997, the governing body shall dedicate the

revenue for either or a combination of the following:

(a) acquisition of land or buildings

for and the design, construction, renovation, equipping or

furnishing of a hospital facility or health clinic owned by

the county or a hospital or health clinic with whom the county

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has entered into a health care facilities contract, lease or

management contract; or

(b) operations and maintenance of a

hospital or health clinic owned by the county or a hospital or

health clinic with whom the county has entered into a health

care facilities contract, lease or management contract; and

(5) if the governing body of a county

described in Paragraph (7) of Subsection A of Section 7-20C-2

NMSA 1978 is enacting the ordinance imposing the tax after

January 1, 2002, the governing body shall dedicate the revenue

for acquisition, lease, renovation or equipping of a hospital

facility or for operation and maintenance of that facility,

whether operated and maintained by the county or by another

party pursuant to a health care facilities contract, lease or

management contract with the county.

E. The ordinance shall not go into effect until

after an election is held and a simple majority of the

qualified electors of the county voting in the election vote

in favor of imposing the local hospital gross receipts tax

and, in the case of a county described in Paragraph (3) or (5)

of Subsection A of Section 7-20C-2 NMSA 1978, also vote in

favor of a property tax at a rate of one dollar ($1.00) for

each one thousand dollars ($1,000) of taxable value of

property in the county. The governing body shall adopt a

resolution calling for an election within seventy-five days of

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the date the ordinance is adopted on the question of imposing

the tax. The question may be submitted to the qualified

electors and voted on as a separate question in a general

election or in any special election called for that purpose by

the governing body. A special election on the question shall

be called, held, conducted and canvassed in substantially the

same manner as provided by law for general elections. If the

question of imposing a local hospital gross receipts tax fails

or if the question of imposing both a local hospital gross

receipts tax and a property tax fails, the governing body

shall not again propose a local hospital gross receipts tax

for a period of one year after the election. A certified copy

of any ordinance imposing a local hospital gross receipts tax

shall be mailed to the department within five days after the

ordinance is adopted in an election called for that purpose.

F. An ordinance enacted pursuant to the provisions

of Subsection A of this section shall include an effective

date of either July 1 or January 1, whichever date occurs

first after the expiration of at least three months from the

date the ordinance is approved by the electorate.

G. An ordinance repealed under the provisions of

the Local Hospital Gross Receipts Tax Act shall be repealed

effective on either July 1 or January 1.

H. As used in this section, "taxable value of

property" means the sum of:

(1) the net taxable value, as that term is

defined in the Property Tax Code, of property subject to

taxation under the Property Tax Code;

(2) the assessed value of products, as those

terms are defined in the Oil and Gas Ad Valorem Production Tax

Act;

(3) the assessed value of equipment, as

those terms are defined in the Oil and Gas Production

Equipment Ad Valorem Tax Act; and

(4) the taxable value of copper mineral

property, as those terms are defined in the Copper Production

Ad Valorem Tax Act, subject to taxation under the Copper

Production Ad Valorem Tax Act."

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