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AN ACT

RELATING TO COUNTIES; AMENDING THE SMALL COUNTIES ASSISTANCE

ACT; ADJUSTING A DEFINITION USED IN CALCULATING THE AMOUNTS

DISTRIBUTED TO QUALIFYING COUNTIES.

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

Section 1. Section 4-61-2 NMSA 1978 (being Laws 1982,

Chapter 44, Section 2, as amended) is amended to read:

"4-61-2. DEFINITIONS.--As used in the Small Counties

Assistance Act:

A. "adjustment factor" means a fraction, the

numerator of which is the net taxable value of the state for

the property tax year prior to the year in which the amount of

small counties assistance is being determined and the

denominator of which is the net taxable value for property tax

year 2002; the adjustment factor shall be calculated without

reference to assessed value determined pursuant to the Oil and

Gas Ad Valorem Production Tax Act, assessed value determined

pursuant to the Oil and Gas Production Equipment Ad Valorem

Tax Act or taxable value determined pursuant to the Copper

Production Ad Valorem Tax Act;

B. "ceiling valuation" means:

(1) for the 2002 property tax year, one

billion four hundred million dollars ($1,400,000,000); and

(2) for each subsequent property tax year,

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an amount equal to the product obtained by multiplying one

billion four hundred million dollars ($1,400,000,000) by the

adjustment factor for the year;

C. "demographer" means the bureau of business and

economic research at the university of New Mexico;

D. "inflation factor" means a fraction whose

numerator is the annual implicit price deflator index for

state and local government purchases of goods and services, as

published in the United States department of commerce monthly

publication entitled "Survey of Current Business" or any

successor publication prepared by an agency of the United

States and adopted by the department of finance and

administration, for the calendar year one year prior to the

year in which the distribution is to be made and whose

denominator is the annual index for calendar year 2004;

provided that, if the inflation factor is calculated to have a

value less than one, it shall be deemed to have a value of

one;

E. "population" means the official population

shown by the most recent federal decennial census or, if there

is a change in boundaries after the date of the census,

"population" for each affected unit shall be the most current

estimated population for that unit provided in writing by the

demographer; provided that after five years from the first day

of the calendar year of the most recent federal decennial

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census, that census shall not be used, and "population" for

the period from that date until the date when the next

following official final decennial census population data are

available shall be the most current estimated population

provided in writing by the demographer;

F. "qualifying county" means a county that has:

(1) for the property tax year in which any

distribution under the Small Counties Assistance Act is made

to the county, imposed a property tax rate for general county

purposes pursuant to Paragraph (1) of Subsection B of Section

7-37-7 NMSA 1978 as limited by Section 7-37-7.1 NMSA 1978 of

at least eight dollars eighty-five cents ($8.85) per one

thousand dollars ($1,000) of net taxable value;

(2) by July 1 of the property tax year in

which any distribution under the Small Counties Assistance Act

is made to the county, received a written certification from

the director of the property tax division of the taxation and

revenue department that the county assessor of that county has

implemented an acceptable program of maintaining current and

correct property values for property taxation purposes as

required by Section 7-36-16 NMSA 1978 or has submitted to the

director an acceptable plan for the implementation of such a

program;

(3) on July 1 of the year in which any

distribution under the Small Counties Assistance Act is made

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to the county, a population of not more than forty-eight

thousand;

(4) imposed county gross receipts tax

increments authorized pursuant to Section 7-20E-9 NMSA 1978

totaling at least three-eighths percent and has those

increments in effect on July 1 of the year in which a

distribution is made, provided that this paragraph does not

apply to a county if the county's valuation for property

taxation purposes does not exceed the product of two hundred

thirty million dollars ($230,000,000) multiplied by the

adjustment factor for the year; and

(5) a total valuation for the property tax

year preceding the year in which a distribution pursuant to

the Small Counties Assistance Act for that county is to be

made that is no greater than the ceiling valuation for that

property tax year; and

G. "total valuation" means the sum for a

jurisdiction for a property tax year of the net taxable value

determined pursuant to the Property Tax Code, the assessed

value determined pursuant to the Oil and Gas Ad Valorem

Production Tax Act, the assessed value determined pursuant to

the Oil and Gas Production Equipment Ad Valorem Tax Act and

the taxable value determined pursuant to the Copper Production

Ad Valorem Tax Act."

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

provisions of this act is July 1, 2008.

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