0001| AN ACT | 0002| RELATING TO TAXATION; AUTHORIZING IMPOSITION OF THE LOCAL HOSPITAL | 0003| GROSS RECEIPTS TAX IN ADDITIONAL CLASSES OF COUNTIES; AMENDING | 0004| SECTIONS OF THE NMSA 1978. | 0005| | 0006| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0007| Section 1. Section 7-20C-2 NMSA 1978 (being Laws 1991, Chapter 176, Section 2, as | 0008| amended) is amended to read: | 0009| "7-20C-2. DEFINITIONS.--As used in the Local Hospital Gross Receipts Tax Act: | 0010| A. "county" means: | 0011| (1) a class B county having a population of less than twenty-five thousand | 0012| according to the most recent federal decennial census and having a net taxable value for rate-setting purposes for the 1990 property tax year or any subsequent year of more than two hundred | 0013| fifty million dollars ($250,000,000); | 0014| (2) a class B county having a population of less than forty-seven thousand | 0015| but more than forty-four thousand according to the 1990 federal decennial census and having a | 0016| net taxable value for rate-setting purposes for the 1992 property tax year of more than three | 0017| hundred million dollars ($300,000,000) but less than six hundred million dollars ($600,000,000); | 0018| (3) a class B county having a population of less than ten thousand | 0019| according to the most recent federal decennial census and having a net taxable value for rate-setting purposes for the 1990 property tax year or any subsequent year of more than one hundred | 0020| million dollars ($100,000,000); | 0021| (4) a class B county having a population of less than twenty-five thousand | 0022| according to the 1990 federal decennial census and having a net taxable value for rate-setting | 0023| purposes for the 1993 property tax year of more than ninety-one million dollars ($91,000,000) | 0024| but less than one hundred twenty-five million dollars ($125,000,000); or | 0025| (5) a class B county having a population of more than seventeen thousand | 0001| but less than twenty thousand according to the 1990 federal decennial census and having a net | 0002| taxable value for rate-setting purposes for the 1993 property tax year of more than one hundred | 0003| fifty-three million dollars ($153,000,000) but less than one hundred fifty-six million dollars | 0004| ($156,000,000); | 0005| B. "department" means the taxation and revenue department, the secretary of | 0006| taxation and revenue or any employee of the department exercising authority lawfully delegated | 0007| to that employee by the secretary; | 0008| C. "governing body" means the board of county commissioners of a county; | 0009| D. "local hospital gross receipts tax" means the tax authorized to be imposed | 0010| under the Local Hospital Gross Receipts Tax Act; | 0011| E. "person" means an individual or any other legal entity; and | 0012| F. "state gross receipts tax" means the gross receipts tax imposed under the Gross | 0013| Receipts and Compensating Tax Act." | 0014| Section 2. Section 7-20C-3 NMSA 1978 (being Laws 1991, Chapter 176, Section 3, as | 0015| amended) is amended to read: | 0016| "7-20C-3. LOCAL HOSPITAL GROSS RECEIPTS TAX--AUTHORITY TO | 0017| IMPOSE--ORDINANCE REQUIREMENTS.-- | 0018| A. A majority of the members elected to the governing body of a county may | 0019| enact an ordinance imposing an excise tax on any person engaging in business in the county for | 0020| the privilege of engaging in business. This tax is to be referred to as the "local hospital gross | 0021| receipts tax". The rate of the tax shall be: | 0022| (1) one-half of one percent of the gross receipts of the person engaging in | 0023| business if the tax is initially imposed before January 1, 1993; | 0024| (2) one-eighth of one percent of the gross receipts of the person engaging | 0025| in business if the tax is initially imposed after January 1, 1993; and | 0001| (3) a rate not to exceed one-half of one percent of the gross receipts of the | 0002| person engaging in business if the tax is imposed after July 1, 1996 in a county described in | 0003| Paragraph (4) of Subsection A of Section 7-20C-2 NMSA 1978; provided, the tax may be | 0004| imposed in any number of increments of one-eighth percent not to exceed an aggregate rate of | 0005| one-half of one percent of gross receipts. | 0006| B. The local hospital gross receipts tax imposed initially before January 1, 1993 | 0007| shall be imposed only once for the period necessary for payment of the principal and interest on | 0008| revenue bonds issued to accomplish the purpose for which the revenue is dedicated, but the | 0009| period shall not exceed ten years from the effective date of the ordinance imposing the tax. The | 0010| local hospital gross receipts tax imposed after July 1, 1996 in a county described in Paragraph | 0011| (4) of Subsection A of Section 7-20C-2 NMSA 1978 shall be imposed only once for the period | 0012| necessary for payment of the principal and interest on revenue bonds issued to accomplish the | 0013| purpose for which the revenue is dedicated, but the period shall not exceed twenty years from | 0014| the effective date of the ordinance imposing the tax. | 0015| C. No local hospital gross receipts tax authorized in Subsection A of this section | 0016| shall be imposed initially after January 1, 1993 unless: | 0017| (1) in a county described in Paragraph (2) of Subsection A of Section | 0018| 7-20C-2 NMSA 1978, the voters of the county have approved the issuance of general obligation | 0019| bonds of the county sufficient to pay at least one-half of the costs of the county hospital facility | 0020| or county twenty-four hour urgent care or emergency facility for which the local hospital gross | 0021| receipts tax revenues are dedicated, including the costs of all acquisition, renovation and | 0022| equipping of the facility; or | 0023| (2) in a county described in Paragraph (3) or (5) of Subsection A of | 0024| Section 7-20C-2 NMSA 1978, the county will not have in effect at the same time a county | 0025| hospital emergency gross receipts tax and the voters of the county have approved the imposition | 0001| of a property tax at a rate of one dollar ($1.00) on each one thousand dollars ($1,000) of taxable | 0002| value of property in the county for the purpose of operation and maintenance of a hospital | 0003| owned by the county and operated and maintained either by the county or by another party | 0004| pursuant to a lease with the county. | 0005| D. The governing body of a county enacting an ordinance imposing a local | 0006| hospital gross receipts tax shall dedicate the revenue from the tax as provided in this subsection. | 0007| In any election held, the ballot shall clearly state the purpose to which the revenue will be | 0008| dedicated and the revenue shall be used by the county for that purpose. The revenues shall be | 0009| dedicated as follows: | 0010| (1) prior to January 1, 1993, the governing body, at the time of enacting | 0011| an ordinance imposing the rate of the tax authorized in Subsection A of this section, shall | 0012| dedicate the revenue for acquisition of land for and the design, construction, equipping and | 0013| furnishing of a county hospital facility to be operated by the county or operated and maintained | 0014| by another party pursuant to a lease with the county; | 0015| (2) if the governing body of a county described in Paragraph (2), (3) or | 0016| (5) of Subsection A of Section 7-20C-2 NMSA 1978 is enacting the ordinance imposing the tax | 0017| after July 1, 1993, the governing body shall dedicate the revenue for acquisition, renovation and | 0018| equipping of a building for a county hospital facility or a county twenty-four hour urgent care or | 0019| emergency facility or for operation and maintenance of that facility, whether operated and | 0020| maintained by the county or by another party pursuant to a lease or management contract with | 0021| the county, for the period of time the tax is imposed not to exceed ten years; and | 0022| (3) if the governing body of a county described in Paragraph (4) of | 0023| Subsection A of Section 7-20C-2 NMSA 1978 is enacting the ordinance imposing the tax after | 0024| July 1, 1995, the governing body shall dedicate the revenue for acquisition of land or buildings | 0025| for and the renovation, design, construction, equipping or furnishing of a county hospital facility | 0001| to be operated by the county or operated and maintained by another party pursuant to a lease or | 0002| management contract with the county. | 0003| E. The ordinance shall not go into effect until after an election is held and a | 0004| simple majority of the qualified electors of the county voting in the election votes in favor of | 0005| imposing the local hospital gross receipts tax and, in the case of a county described in Paragraph | 0006| (3) or (5) of Subsection A of Section 7-20C-2 NMSA 1978, also votes in favor of a property tax | 0007| at a rate of one dollar ($1.00) for each one thousand dollars ($1,000) of taxable value of property | 0008| in the county. The governing body shall adopt a resolution calling for an election within | 0009| seventy-five days of the date the ordinance is adopted on the question of imposing the tax. The | 0010| question may be submitted to the qualified electors and voted upon as a separate question in a | 0011| general election or in any special election called for that purpose by the governing body. A | 0012| special election upon the question shall be called, held, conducted and canvassed in substantially | 0013| the same manner as provided by law for general elections. If the question of imposing a local | 0014| hospital gross receipts tax fails or if the question of imposing both a local hospital gross receipts | 0015| tax and a property tax fails, the governing body shall not again propose a local hospital gross | 0016| receipts tax for a period of one year after the election. A certified copy of any ordinance | 0017| imposing a local hospital gross receipts tax shall be mailed to the department within five days | 0018| after the ordinance is adopted in any election called for that purpose. | 0019| F. Any ordinance enacted pursuant to the provisions of Subsection A of this | 0020| section shall include an effective date of either July 1 or January 1, whichever date occurs first | 0021| after the expiration of at least three months from the date the ordinance is approved by the | 0022| electorate. | 0023| G. Any ordinance repealed under the provisions of the Local Hospital Gross | 0024| Receipts Tax Act shall be repealed effective on either July 1 or January 1. | 0025| H. As used in this section, "taxable value of property" means the sum of: | 0001| (1) the net taxable value, as that term is defined in the Property Tax | 0002| Code, of property subject to taxation under the Property Tax Code; | 0003| (2) the assessed value of products, as those terms are defined in the Oil | 0004| and Gas Ad Valorem Production Tax Act; | 0005| (3) the assessed value of equipment, as those terms are defined in the Oil | 0006| and Gas Production Equipment Ad Valorem Tax Act; and | 0007| (4) the taxable value of copper mineral property, as those terms are | 0008| defined in the Copper Production Ad Valorem Tax Act, subject to taxation under the Copper | 0009| Production Ad Valorem Tax Act." | 0010| Section 3. Section 7-20C-9 NMSA 1978 (being Laws 1991, Chapter 176, Section 9, as | 0011| amended) is amended to read: | 0012| "7-20C-9. LOCAL HOSPITAL REVENUE BONDS--AUTHORITY TO ISSUE--PLEDGE OF REVENUES.-- | 0013| A. A county, other than a county described in Paragraph (2) of Subsection A of | 0014| Section 7-20C-2 NMSA 1978, may issue local hospital revenue bonds pursuant to the Local | 0015| Hospital Gross Receipts Tax Act for the purpose of acquiring land for and designing, | 0016| constructing, equipping and furnishing a county hospital facility to be operated by the county or | 0017| by another party pursuant to a lease or management contract with the county. | 0018| B. The county issuing the local hospital revenue bonds pursuant to the Local | 0019| Hospital Gross Receipts Tax Act shall pledge irrevocably all of the net receipts derived from the | 0020| imposition of the local hospital gross receipts tax and any other revenues as necessary for the | 0021| payment of principal and interest on the revenue bonds." | 0022| Section 4. Section 7-20C-11 NMSA 1978 (being Laws 1991, Chapter 176, Section 11, | 0023| as amended) is amended to read: | 0024| "7-20C-11. REVENUE BONDS--TERMS.--Local hospital revenue bonds: | 0025| A. may have interest, appreciated principal value or any part thereof payable at | 0001| intervals or at maturity as may be determined by the governing body in the ordinance; | 0002| B. may be subject to a prior redemption at the option of the county at such times | 0003| and upon such terms and conditions, with or without the payment of such premiums, as may be | 0004| provided by the ordinance authorizing the bonds; | 0005| C. may mature at any time not exceeding twenty years after the date of issuance; | 0006| D. may be serial in form and maturity or may consist of one bond payable at one | 0007| time or in installments or may be in any other form as may be provided in the ordinance | 0008| authorizing the bonds; | 0009| E. shall be sold for cash at, above or below par and at a price that results in a net | 0010| effective interest rate that does not exceed the maximum permitted by the Public Securities Act; | 0011| and | 0012| F. may be sold at a public or negotiated sale." | 0013| | 0014| |