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F I S C A L I M P A C T R E P O R T
SPONSOR Moore
ORIGINAL DATE
LAST UPDATED
1/24/08
HB 229
SHORT TITLE End Yield Control on School Mill Levy
SB
ANALYST Francis
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
FY10
1,900
2,000 Recurring
Local
Government –
School districts
5,600
5,900 Recurring Public School
Fund
(Parenthesis ( ) Indicate Revenue Decreases)
Companion to HB398, HB51, HB311, HB241, HJR8
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Finance and Administration (DFA)
Public Education Department (PED)
SUMMARY
Synopsis of Bill
House Bill 229 removes a 0.5 mill levy used for school district operating purposes from the yield
control limitations.
1
Current property tax law includes the school district operating levy in a
section that controls the amount taxable value of property can increase in a given year.
The effective date is July 1, 2008, and so would be used in DFA’s rate setting process in fall
2008.
FISCAL IMPLICATIONS
The fiscal impact of this change is a total of $7.5 million in increased revenue. The funding
formula includes a credit of 75 percent for property tax collected from this mill levy which is
1
0.5 mill equals 50 cents per $1000 taxable property value.
pg_0002
House Bill 229 – Page
2
distributed to the state Public School Fund and then redistributed per the formula. So the net
impact on school districts is $1.9 million and the net impact on the public school fund is $5.6
million.
TRD:
School district operating levies currently generate approximately $15 million in
obligations annually – roughly 1.6 percent of the statewide approximate $1.28 billion
total. This figure would rise by about $8.5 million if all school districts imposed all of
their remaining authority and the yield control statute did not apply. Figures shown in the
first three columns above were calculated by DFA and generate results similar to
calculations done by TRD. They do not reflect actual collection experience, but
including distribution to school districts of taxes generated via sales of delinquent
properties would most likely make the figures shown above very accurate. The FY 2010
through 2012 figures shown above are simply the FY09 figures increased by
approximately 5 percent in each successive year.
The yield control mechanism encourages reassessment – and property tax equity -- by
decreasing property tax rates in response to increases in assessed value resulting from
reassessment, thus limiting property tax yields. The proposed measure’s rationale for
exempting school district operating levies and not levies of other entities – primarily
counties and municipalities – is unclear. The cost to the average taxpayer would,
however, in most cases, be relatively small, because the $7.5 million in increased
obligations it would generate represents only about .6 percent of total tax obligations
statewide.
SIGNIFICANT ISSUES
The 2007 funding formula study task force sponsored HB229 as a way of providing additional
funding for a new public school funding formula. HB 241 is the legislation that would change
the formula.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
HB 241 establishes a new public school funding formula.
HB51 mandates combined reporting for unitary corporations and distributes a portion of the
corporate income tax revenues to the Public School Fund.
HJR8 amends the constitution to divert some of the land grant permanent fund to the Public
School Fund.
HB398 appropriates funds to supplement public school funding.
HB311 raises the state gross receipts tax rate for public school funding.
NF/mt
pg_0003
House Bill 229 – Page
3
DFA Estimate of Impact by School District
DISTRICT County/Tax Area
Current
Obligations
Proposed
Obligations Increase
25% to
School
District
75% to
Public
School Fund
ALBUQUERQUE Bernalillo #12/2A 4,015,830 6,432,097 2,416,267 604,067 1,812,200
ALBUQUERQUE Bernalillo #R1-A
4,159
4,159
0
0
0
MORIARTY
Bernalillo #24
27,554 37,847 10,293
2,573
7,720
MORIARTY
Bernalillo #8-T
50
50
0
0
0
RESERVE
Catron #1
18,043 18,043
0
0
0
QUEMADO
Catron #2
20,959 27,917 6,958
1,740
5,218
QUEMADO
Catron #2A
2,310
3,048
738
185
554
ROSWELL
Chaves #1
298,476 386,042 87,565 21,891
65,674
ARTESIA
Chaves #14
3,433
3,534
101
25
76
TATUM
Chaves #1L
19
25
6
2
5
LAKE ARTHUR Chaves #20
10,167 10,417
250
63
187
ELIDA
Chaves #27/28
1,965
2,063
99
25
74
HAGERMAN Chaves #6
11,712 12,908 1,197
299
897
DEXTER
Chaves #8
26,041 30,377 4,337
1,084
3,253
GRANTS/CIBOLA Cibola #3
103,661 117,909 14,247
3,562
10,686
QUEMADO
Cibola Q-M-02
1,250
1,563
313
78
234
CIMARRON Colfax #3
81,419 137,815 56,396 14,099
42,297
MAXWELL
Colfax #26
3,758
4,827 1,069
267
802
SPRINGER
Colfax #24
8,804 13,436 4,632
1,158
3,474
RATON
Colfax #11
44,510 62,628 18,118
4,530
13,588
DES MOINES Colfax #35
385
443
57
14
43
CLOVIS
Curry #1
236,565 240,929 4,364
1,091
3,273
MELROSE
Curry #12
8,262
8,299
37
9
28
TEXICO
Curry #2
17,969 19,698 1,729
432
1,297
GRADY
Curry #61
3,877
3,891
13
3
10
FORT SUMNER De Baca #20
21,769 23,266 1,497
374
1,123
HATCH
Dona Ana #11
23,966 28,817 4,851
1,213
3,638
GADSDEN
Dona Ana #16
224,933 299,991 75,058 18,765
56,293
LAS CRUCES Dona Ana #2
880,200 1,234,661 354,462 88,616 265,846
LOVING
Eddy #10
61,148 67,608 6,461
1,615
4,846
ARTESIA
Eddy #16
542,558 550,739 8,181
2,045
6,136
CARLSBAD Eddy #C
646,107 664,013 17,906
4,477
13,429
SILVER CONS. Grant #1
126,901 220,124 93,223 23,306
69,917
COBRE
Grant #2
50,731 88,573 37,842
9,461
28,381
VAUGHN
Guadalupe #33
10,477 10,568
92
23
69
SANTA ROSA Guadalupe #8
32,935 37,514 4,579
1,145
3,434
LOGAN
Harding #24/25
1,053
1,144
91
23
68
ROY
Harding #3
2,879
3,222
342
86
257
MOSQUERO Harding #5
14,163 14,348
184
46
138
LORDSBURG Hidalgo #1
52,241 52,520
279
70
209
ANIMAS
Hidalgo #6
13,717 14,637
919
230
689
EUNICE
Lea #8
322,602 324,176 1,574
394
1,181
JAL
Lea #19
113,462 113,696
233
58
175
LOVINGTON Lea #1
315,692 326,687 10,995
2,749
8,246
HOBBS
Lea #16
460,956 501,091 40,136 10,034
30,102
TATUM
Lea #28
81,271 82,598 1,327
332
995
CAPITAN
Lincoln #28
69,711 134,289 64,577 16,144
48,433
pg_0004
House Bill 229 – Page
4
DFA Estimate of Impact by School District
DISTRICT County/Tax Area
Current
Obligations
Proposed
Obligations Increase
25% to
School
District
75% to
Public
School Fund
HONDO
Lincoln #20
12,209 12,321
112
28
84
RUIDOSO
Lincoln #3
120,228 185,377 65,149 16,287
48,862
CORONA
Lincoln #13
12,130 12,193
63
16
47
CARRIZOZO Lincoln #7
14,850 16,917 2,067
517
1,550
LOS ALAMOS Los Alamos #1
201,219 362,064 160,846 40,212 120,634
DEMING
Luna #1
197,219 213,653 16,433
4,108
12,325
ZUNI
McKinley
1,355
1,355
0
0
0
GALLUP-
MCKINLEY
McKinley #1
276,805 338,387 61,582 15,396
46,187
MORA
Mora #1
16,595 29,412 12,818
3,205
9,613
WAGON MOUND Mora #12
6,173
7,119
946
237
710
WAGON MOUND Mora #10-A
1,438
1,891
453
113
340
LAS VEGAS
CITY
Mora #12C
1,198
1,788
589
147
442
ALAMOGORDO Otero #1
211,696 279,506 67,810 16,953
50,857
CLOUDCROFT Otero #11
36,016 66,288 30,272
7,568
22,704
GADSDEN
Otero #16
8,774 13,201 4,427
1,107
3,321
TULAROSA
Otero #4
23,230 30,297 7,067
1,767
5,300
TUCUMCARI Quay #1
29,033 35,130 6,097
1,524
4,573
HOUSE
Quay #19
2,407
2,673
266
67
199
GRADY
Quay #23/47
321
322
1
0
1
LOGAN
Quay #32
13,681 18,973 5,292
1,323
3,969
LOGAN
Quay #33
3,245
3,421
176
44
132
SAN JON
Quay #34
6,251
6,660
409
102
307
MELROSE
Quay #53
1,370
1,375
5
1
4
CHAMA VALLEY Rio Arriba #19
33,321 56,365 23,044
5,761
17,283
DULCE
Rio Arriba #21
476,200 477,549 1,350
338
1,012
PENASCO
Rio Arriba #32
787
1,357
570
143
427
ESPANOLA
Rio Arriba #45
58,639 92,618 33,979
8,495
25,484
JEMEZ
MOUNTAIN Rio Arriba #53
179,414 183,297 3,883
971
2,912
MESA VISTA Rio Arriba #6T
4,890
6,976 2,086
522
1,564
ELIDA
Roosevelt #2
9,700 10,003
303
76
227
FLOYD
Roosevelt #5
6,875
7,122
247
62
185
PORTALES
Roosevelt #1
81,829 90,542 8,714
2,179
6,535
DORA
Roosevelt #39
13,957 14,210
253
63
190
TEXICO
Roosevelt #3
8,554
9,322
768
192
576
MELROSE
Roosevelt #9/53
2,386
2,389
3
1
2
HOUSE
Roosevelt #9A/74
1,729
1,830
101
25
76
AZTEC
San Juan #2
624,198 660,972 36,774
9,194
27,581
AZTEC
San Juan #6120
427
457
30
8
23
CENTRAL CONS. San Juan #22
323,305 332,769 9,465
2,366
7,098
FARMINGTON San Juan #5
406,929 525,376 118,447 29,612
88,835
BLOOMFIELD San Juan #6
381,350 496,228 114,878 28,720
86,158
LAS VEGAS
WEST
San Miguel #1
44,376 69,323 24,948
6,237
18,711
LAS VEGAS
CITY
San Miguel #2
62,589 101,922 39,333
9,833
29,500
PECOS
San Miguel #21
11,587 18,276 6,690
1,673
5,017
pg_0005
House Bill 229 – Page
5
DFA Estimate of Impact by School District
DISTRICT County/Tax Area
Current
Obligations
Proposed
Obligations Increase
25% to
School
District
75% to
Public
School Fund
SANTA ROSA San Miguel #50
334
477
144
36
108
BERNALILLO Sandoval #1
109,854 255,334 145,480 36,370 109,110
CUBA
Sandoval #20
20,782 23,674 2,892
723
2,169
ALBUQUERQUE Sandoval #2A
72,497 134,922 62,425 15,606
46,819
ALBUQUERQUE Sandoval #2AC
10,655 20,088 9,432
2,358
7,074
JEMEZ VALLEY Sandoval #31
21,389 34,809 13,420
3,355
10,065
JEMEZ VALLEY Sandoval #31RR
0
0
0
0
0
RIO RANCHO Sandoval #94
363,081 966,033 602,952 150,738 452,214
POJOAQUE
Santa Fe #1
32,234 82,009 49,774 12,444
37,331
ESPANOLA
Santa Fe #18
17,092 53,970 36,878
9,220
27,659
MORIARTY
Santa Fe #8T
75,308 98,205 22,897
5,724
17,172
SANTA FE
Santa Fe #C
933,116 2,803,262 1,870,146 467,537 1,402,610
TRUTH OR
CONSEQ.
Sierra #6
110,822 110,822
0
0
0
SOCORRO
Socorro #1
43,363 71,703 28,340
7,085
21,255
MAGDALENA Socorro #12
6,172 10,738 4,567
1,142
3,425
CORONA
Socorro #13L
1,167
1,173
5
1
4
MOUNTAINAIR Socorro #13T
1,375
1,538
164
41
123
BELEN
Socorro #5
14,614 18,650 4,036
1,009
3,027
CARRIZOZO Socorro #7L
208
243
35
9
27
TAOS
Taos #1/#8-18
208,829 357,418 148,589 37,147 111,442
PENASCO
Taos #4
6,355 14,786 8,430
2,108
6,323
MESA VISTA Taos #6
8,129
9,555 1,426
357
1,070
QUESTA
Taos #9
61,726 76,680 14,955
3,739
11,216
MOUNTAINAIR Torrance #13
19,527 21,938 2,411
603
1,808
VAUGHN
Torrance #16
9,265
9,309
45
11
33
CORONA
Torrance #20/35
2,179
2,192
13
3
10
ESTANCIA
Torrance #7
39,597 41,043 1,447
362
1,085
MORIARTY
Torrance #8
56,562 70,198 13,636
3,409
10,227
CLAYTON
Union #1
47,638 49,981 2,343
586
1,757
DES MOINES Union #22
8,976 10,190 1,214
304
911
SPRINGER
Union #49
355
427
72
18
54
LOS LUNAS Valencia #1
135,729 276,045 140,316 35,079 105,237
LOS LUNAS Valencia #3-LL**
2,034
5,523 3,489
872
2,616
BELEN
Valencia #2
115,587 187,732 72,145 18,036
54,109
BELEN
Valencia #3-BN*
291
651
360
90
270
PERALTA
0
0
0
0
TOTAL
15,507,977 22,994,791 7,486,819 1,871,705 5,615,112