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AN ACT

RELATING TO TAXATION; PROVIDING THAT CERTAIN RECEIPTS MAY BE

DISTRIBUTED TO THE SOLE COMMUNITY PROVIDER FUND; DECLARING AN

EMERGENCY.

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

Section 1. Section 7-1-6.13 NMSA 1978 (being Laws 1983,

Chapter 211, Section 18, as amended) is amended to read:

"7-1-6.13. TRANSFER--REVENUES FROM COUNTY LOCAL OPTION

GROSS RECEIPTS TAXES.--

A. Except as provided in Subsections B and C of

this section, a transfer pursuant to Section 7-1-6.1 NMSA 1978

shall be made to each county for which the department is

collecting a local option gross receipts tax imposed by that

county in an amount, subject to any increase or decrease made

pursuant to Section 7-1-6.15 NMSA 1978, equal to the net

receipts attributable to the local option gross receipts tax

imposed by that county, less any deduction for administrative

cost determined and made by the department pursuant to the

provisions of the act authorizing imposition by that county of

the local option gross receipts tax and any additional

administrative fee withheld pursuant to Subsection C of

Section 7-1-6.41 NMSA 1978.

B. A transfer pursuant to this section may be

adjusted for a distribution made to a tax increment

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development district with respect to a portion of a gross

receipts tax increment dedicated by a county pursuant to the

Tax Increment for Development Act.

C. Through June 30, 2009, a distribution pursuant

to Section 7-1-6.1 NMSA 1978 shall be made to the sole

community provider fund from revenue attributable to the

county gross receipts tax imposed by a county pursuant to

Section 7-20E-9 NMSA 1978, subject to the approval of the

board of county commissioners of that county. The

distribution shall be in an amount equal to one-twelfth of the

county's annual approved contribution for support of sole

community provider payments. Revenue in excess of the amount

required for the contribution shall be transferred to the

county pursuant to the provisions of Subsection A of this

section."

Section 2. Section 7-20E-7 NMSA 1978 (being Laws 1993,

Chapter 354, Section 7, as amended) is amended to read:

"7-20E-7. COLLECTION BY DEPARTMENT--TRANSFER OF

PROCEEDS--DEDUCTIONS.--

A. The department shall collect each tax imposed

pursuant to the provisions of the County Local Option Gross

Receipts Taxes Act in the same manner and at the same time it

collects the state gross receipts tax.

B. The department shall withhold an administrative

fee pursuant to Section 7-1-6.41 NMSA 1978. Except as

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provided in Subsection C of this section, the department shall

transfer to each county for which it is collecting a tax

pursuant to the provisions of the County Local Option Gross

Receipts Taxes Act the amount of each tax collected for that

county, less the administrative fee withheld and less any

disbursements for tax credits, refunds and the payment of

interest applicable to the tax. The transfer to the county

shall be made within the month following the month in which

the tax is collected.

C. Through June 30, 2009, with respect to revenue

attributable to imposition by a county of the county gross

receipts tax pursuant to Section 7-20E-9 NMSA 1978, the

department shall, subject to the approval of the board of

county commissioners of that county, distribute monthly to the

sole community provider fund an amount equal to one-twelfth of

the county's approved annual contribution for support of sole

community provider payments. Revenue in excess of the amount

required for the contribution shall be transferred to the

county pursuant to the provisions of Subsection B of this

section."

Section 3. Section 7-20E-9 NMSA 1978 (being Laws 1983,

Chapter 213, Section 30, as amended) is amended to read:

"7-20E-9. COUNTY GROSS RECEIPTS TAX--AUTHORITY TO

IMPOSE RATE--INDIGENT FUND REQUIREMENTS.--

A. A majority of the members of the governing body

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of a county may enact an ordinance imposing an excise tax not

to exceed a rate of seven-sixteenths percent of the gross

receipts of any person engaging in business in the county for

the privilege of engaging in business in the county. An

ordinance imposing an excise tax pursuant to this section

shall impose the tax in three independent increments of one-

eighth percent and one independent increment of one-sixteenth

percent, which shall be separately denominated as "the first

one-eighth increment", "the second one-eighth increment", "the

third one-eighth increment" and "the one-sixteenth increment",

respectively, not to exceed an aggregate amount of seven-

sixteenths percent.

B. The tax authorized in Subsection A of this

section is to be referred to as the "county gross receipts

tax".

C. A class A county with a county hospital

operated and maintained pursuant to a lease with a state

educational institution named in Article 12, Section 11 of the

constitution of New Mexico enacting the second one-eighth

increment of county gross receipts tax shall provide, each

year that the tax is in effect, not less than one million

dollars ($1,000,000) in funds, and that amount shall be

dedicated to the support of indigent patients who are

residents of that county. Funds for indigent care shall be

made available each month of each year the tax is in effect in

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an amount not less than eighty-three thousand three hundred

thirty-three dollars thirty-three cents ($83,333.33). The

interest from the investment of county funds for indigent care

may be used for other assistance to indigent persons, not to

exceed twenty thousand dollars ($20,000) for all other

assistance in any year.

D. A county, except a class A county with a county

hospital operated and maintained pursuant to a lease with a

state educational institution named in Article 12, Section 11

of the constitution of New Mexico, imposing the second

one-eighth increment of county gross receipts tax shall be

required to dedicate the entire amount of revenue produced by

the imposition of the second one-eighth increment for the

support of indigent patients who are residents of that county.

The revenue produced by the imposition of the third one-eighth

increment and the one-sixteenth increment may be used for

general purposes. Any county that has imposed the second one-

eighth increment or the third one-eighth increment, or both,

on January 1, 1996 for support of indigent patients in the

county or after January 1, 1996 imposes the second one-eighth

increment or imposes the third one-eighth increment and

dedicates one-half of that increment for county indigent

patient purposes shall deposit the revenue dedicated for

county indigent purposes that is transferred to the county

after the distribution pursuant to Subsection C of Section

7-1-6.13 and Subsection C of Section 7-20E-7 NMSA 1978 in the

county indigent hospital claims fund and such revenues shall

be expended pursuant to the Indigent Hospital and County

Health Care Act."

Section 4. EMERGENCY.--It is necessary for the public

peace, health and safety that this act take effect

immediately.

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