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NM SB26

NM SB26
Hold Harmless Distributions


summary

Introduced
01/18/2022
In Committee
02/02/2022
Crossed Over
Passed
Dead
02/17/2022

Introduced Session

2022 Regular Session

Bill Summary

AN ACT RELATING TO LOCAL GOVERNMENTS; ALLOWING CERTAIN MUNICIPALITIES TO RETAIN A CERTAIN PERCENTAGE OF THE HOLD HARMLESS DISTRIBUTION TO OFFSET GROSS RECEIPTS DEDUCTIONS FOR FOOD AND HEALTH CARE PRACTITIONER SERVICES; CLARIFYING THAT CERTAIN OTHER MUNICIPALITIES AND COUNTIES ARE EXEMPT FROM THE PHASE-OUT OF THAT DISTRIBUTION IF THEY DID NOT HAVE A HOLD HARMLESS GROSS RECEIPTS TAX IN EFFECT ON JUNE 30, 2019.

AI Summary

This bill allows certain municipalities that did not have a municipal hold harmless gross receipts tax in effect on June 30, 2019 to retain a percentage of the hold harmless distribution to offset losses from deductions for food and health care practitioner services. It also clarifies that certain other municipalities and counties that did not have a hold harmless gross receipts tax in effect on June 30, 2019 are exempt from the phase-out of that distribution. The bill establishes different retention percentages based on the poverty level of the municipality, and provides a formula for calculating the maximum distribution amount. The effective date of the bill is July 1, 2022.

Committee Categories

Budget and Finance

Sponsors (2)

Last Action

Senate Finance Committee (00:00 2/10/2022 Room 322) (on 02/10/2022)

bill text


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