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F I S C A L I M P A C T R E P O R T
SPONSOR Taylor, J.G.
ORIGINAL DATE
LAST UPDATED
2/25/07
2/26/07 HB
SHORT TITLE Municipality Gross Receipts Uses & Elections
SB 938
ANALYST Schardin
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
FY09
See Narrative
Recurring
Local
Governments
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
Senate Bill 938 authorizes the a majority of members of municipal and county governing bodies
to impose new local option gross receipts taxes, the municipal recreation gross receipts tax and
the county recreation gross receipts tax. The taxes may be imposed in 1/16 percent increments of
up to 0.25 percent in each municipality and county. Imposition of the taxes will require approval
by a majority of a municipality or county’s voters.
Revenues collected from the new taxes will be restricted to use for acquiring, constructing,
purchasing, improving, operating, maintaining, staffing, or marketing public parks or public
recreational buildings or facilities. The bill will allow issuance of bonds repayable with revenues
from the new tax. If bonds are issued, recreational gross receipts tax revenues will be restricted
for bond payments or the other costs described above. At least 10 percent of revenues collected
must be used to repair, renovate or operate existing park facilities.
The effective date of these provisions will be July 1, 2007.
pg_0002
Senate Bill 938 – Page
2
FISCAL IMPLICATIONS
The fiscal impact of the new taxes depends on if, when, and at what increment New Mexico
municipalities and counties choose to impose the new taxes. The tables below illustrate the
additional revenue that may be generated in each county and municipality from imposing an
additional 0.25 percent tax. The bill authorizes counties and municipalities to collect an
additional $124.5 million and $98.3 million, respectively.
FY 2008
Taxable Gross
Receipts
Revenue from
A
dditional 14%
Tax
Bernalillo County
$18,007,800,533 $45,019,501
Catron 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
pg_0003
Senate Bill 938 – Page
3
FY2008 Taxable Additional GRT
FY2008 Taxable Additional GRT
Municipalit
y
Gross Receipts From 1/4% Tax
Municipalit
y
Gross Receipts From 1/4% Tax
Alamogordo
649,276,248
1,623,191
Lake Arthur
1,437,222
3,593
Albuquerque
15,857,185,763
39,642,964
Las Cruces
2,689,528,453
6,723,821
Angel Fire
62,377,897
155,945
Las Vegas
274,695,213
686,738
Artesia
734,584,517
1,836,461
Logan
16,844,581
42,111
Aztec
146,782,037
366,955
Lordsburg
54,212,549
135,531
Bayard
24,655,733
61,639
Los Alamos
918,402,933
2,296,007
Belen
210,091,680
525,229
Los Lunas
522,484,970
1,306,212
Bernalillo
153,982,787
384,957
Los Ranchos de Albuq. 115,889,960
289,725
Bloomfield
222,091,267
555,228
Loving
5,819,707
14,549
Bosque Farms
49,261,295
123,153
Lovington
194,794,893
486,987
Capitan
16,620,251
41,551
Magdalena
6,609,444
16,524
Carlsbad
647,619,016
1,619,048
Maxwell
1,876,155
4,690
Carrizozo
8,693,356
21,733
Melrose
5,129,146
12,823
Causey
405,805
1,015
Mesilla
39,534,582
98,836
Chama
28,706,694
71,767
Milan
29,090,373
72,726
Cimarron
10,532,272
26,331
Moriarty
77,176,313
192,941
Clayton
40,263,087
100,658
Mosquero
812,311
2,031
Cloudcroft
23,238,096
58,095
Mountainair
9,458,232
23,646
Clovis
767,322,483
1,918,306
Pecos
9,404,376
23,511
Columbus
8,456,390
21,141
Portales
195,240,013
488,100
Corona
1,605,485
4,014
Questa
16,665,739
41,664
Corrales
138,392,661
345,982
Raton
145,630,439
364,076
Cuba
34,392,859
85,982
Red River
35,206,129
88,015
Deming
255,006,788
637,517
Reserve
9,726,107
24,315
Des Moines
3,894,433
9,736
Rio Rancho
1,781,075,244
4,452,688
Dexter
23,659,945
59,150
Roswell
1,052,997,939
2,632,495
Dora
11,344,921
28,362
Roy
4,607,160
11,518
Eagle Nest
6,970,647
17,427
Ruidoso
265,240,242
663,101
Edgewood
90,871,768
227,179
Ruidoso Downs
100,411,489
251,029
Elephant Butte
24,771,067
61,928
San Jon
3,023,885
7,560
Elida
8,384,163
20,960
San Ysidro
4,244,586
10,611
Encino
717,495
1,794
Santa Clara (Central)
3,237,931
8,095
Espanola
349,069,084
872,673
Santa Fe
3,340,296,013
8,350,740
Estancia
3,150,359
7,876
Santa Rosa
71,819,802
179,550
Eunice
136,646,171
341,615
Silver City
314,402,040
786,005
Farmington
2,446,279,887
6,115,700
Socorro
176,739,901
441,850
Floyd
1,806,662
4,517
Springer
10,218,014
25,545
Folsom
976,778
2,442
Sunland Park
143,459,105
358,648
Fort Sum ner
14,289,626
35,724
Taos
420,175,082
1,050,438
Gallup
695,003,680
1,737,509
Taos Ski Valley
22,064,097
55,160
Grady
640,237
1,601
Tatum
14,393,101
35,983
Grants
154,412,263
386,031
Texico
6,853,415
17,134
Grenville
132,640
332
Tijeras
29,054,081
72,635
Hagerm an
9,959,335
24,898
Truth or Consequences 106,829,962
267,075
Hatch
25,690,363
64,226
Tucumcari
107,043,592
267,609
Hobbs
1,783,821,330
4,459,553
Tularosa
18,934,163
47,335
Hope
2,272,527
5,681
Vaughn
9,314,743
23,287
House
3,237,335
8,093
Virden
1,994,172
4,985
Hurley
2,208,930
5,522
Wagon Mound
843,954
2,110
Jal
30,775,173
76,938
Willard
2,051,671
5,129
Jemez Springs
4,458,325
11,146
Williamsburg
2,399,557
5,999
Total TGR
39,316,384,394
Total Additional GRT
98,290,961
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. The
proposal would allow for gross receipts tax rates to rise by 0.25 percent in unincorporated areas
pg_0004
Senate Bill 938 – Page
4
of New Mexico counties and as much as 0.5 percent in New Mexico municipalities.
ADMINISTRATIVE IMPLICATIONS
The bill will create minimal administrative impacts on TRD.
SS/nt