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F I S C A L I M P A C T R E P O R T

SPONSOR Taylor

ORIGINAL DATE

LAST UPDATED

1/31/08

2/07/08 HB

SHORT TITLE Bernalillo Fire Protection Excise Tax Uses

SB 461

ANALYST Schardin

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

FY10

NFI

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

Senate Bill 461 amends statute to allow revenue generated by the county fire protection excise

tax to be used to pay salary, compensation and remuneration to an employee of the state, county

or fire district in Bernalillo County whose work relates to independent fire districts or ambulance

services. Under current law, all counties are prohibited from using the county fire protection

excise tax for that purpose.

Because the bill has no effective date, and if signed by the Governor, it will become effective 90

days after adjournment of the 2008 legislature on May 14, 2008.

FISCAL IMPLICATIONS

The bill does not affect Bernalillo County’s ability to generate tax revenue. It only broadens the

scope of what county fire protection excise tax revenue may be used for to include

compensation.

Bernalillo County is expected to have taxable gross receipts totaling $16.1 billion in FY09.

Imposing a 1/8 percent increment would generate revenue of $21.8 million, and a ¼ increment

would generate about $43.7 million.

Senate Bill 461 – Page

2

SIGNIFICANT ISSUES

All counties are allowed to impose a county fire protection excise tax of 1/8 or ¼ percent.

Imposition of the tax requires a majority vote of the county. Under Section 7-20E-15 NMSA

1978, at the time a county government imposes the tax, it must dedicate the revenue to be

generated to financing the operational expenses, ambulance services, or capital outlay costs of

independent fire districts or ambulance services provided by the county. Because Bernalillo

County will still be required to dedicate county fire excise tax revenue to these purposes, the bill

would only allow use of the revenue to pay salaries and compensation to workers in the fire or

ambulance service fields.

Currently, all counties are prohibited from using county fire protection excise tax revenue to pay

for salaries and compensation. The bill would allow more flexibility for Bernalillo County to use

their revenue for salaries and compensation.

As of January 1, 2008, Bernalillo county has not imposed any increment of the county fire

protection excise tax.

ADMINISTRATIVE IMPLICATIONS

Administrative impact on TRD will be minimal.

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