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F I S C A L I M P A C T R E P O R T
SPONSOR Smith
ORIGINAL DATE
LAST UPDATED
2/2/07
2/14/07 HB
SHORT TITLE Local Option Senior Services Gross Receipts
SB 518
ANALYST Schardin
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
FY09
*See Narrative
*See Narrative Recurring
County
Governments
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
Senate Bill 518 creates a new tax, the county senior citizen services gross receipts tax. Counties
will be allowed to impose the tax for up to six years in 1/16 percent increments of up to ¼
percent. Revenue raised through imposition of this tax will be restricted for use in the
administration and operation of an area agency on aging-approved senior citizen centers that are
contract providers of senior citizen services located in the county.
Imposition of this tax will require approval by the majority of a county’s voters.
The effective date of these provisions will be July 1, 2007.
FISCAL IMPLICATIONS
The fiscal impact of this bill depends on if and when county governments choose to impose a
county senior citizen service gross receipts tax. TRD provided the table below to indicate the
potential revenue increase to each county if an additional 0.25 percent tax were imposed in
FY08.
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Senate Bill 518 – Page
2
FY 2008
Taxable Gross
Receipts
Revenue from
Additional
1/4% Tax
Bernalillo County
$18,007,800,533 $45,019,501
Carton County
$45,398,509
$113,496
Chaves County
$1,288,243,597 $3,220,609
Cibola County
$221,462,045
$553,655
Colfax County
$320,643,295
$801,608
Curry County
$893,731,953 $2,234,330
DeBaca County
$45,206,628
$113,017
Dona Ana County
$3,583,835,026 $8,959,588
Eddy County
$2,695,714,130 $6,739,285
Grant County
$535,737,390 $1,339,343
Guadalupe County
$284,455,853
$711,140
Harding County
$6,171,312
$15,428
Hidalgo County
$94,012,098
$235,030
Lea County
$3,133,096,430 $7,832,741
Lincoln County
$555,456,255 $1,388,641
Los Alamos County
$914,176,908 $2,285,442
Luna County
$498,746,830 $1,246,867
McKinley County
$1,103,313,383 $2,758,283
Mora County
$22,916,717
$57,292
Otero County
$868,728,115 $2,171,820
Quay County
$107,209,748
$268,024
Rio Arriba County
$691,702,965 $1,729,257
Roosevelt County
$348,126,854
$870,317
San Juan County
$4,310,992,010 $10,777,480
San Miquel County
$336,084,200
$840,211
Sandoval County
$2,396,433,606 $5,991,084
Santa Fe County
$4,189,459,380 $10,473,648
Sierra County
$174,862,825
$437,157
Socorro County
$268,437,579
$671,094
Taos County
$710,489,941 $1,776,225
Torrance County
$164,692,727
$411,732
Union County
$83,209,858
$208,025
Valencia County
$898,587,912
$2,246,470
TOTAL
$49,799,136,612 $124,497,842
Source: Taxation and Revenue Department
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Senate Bill 518 – Page
3
SIGNIFICANT ISSUES
Under current law, New Mexico’s local governments are authorized to impose up to 4.6875
percent of local option gross receipts taxes (that figure excludes several additional local option
taxes that have been authorized for selected local governments). On average, a local option gross
receipts tax of about 1.6 percent is actually imposed by local governments statewide. Combined
with the state gross receipts tax of 5 percent, the statewide tax rate is therefore 6.6 percent.
ADMINISTRATIVE IMPLICATIONS
The administrative impact on TRD will be minimal.
SS/mt