Bill > SB27

This bill makes the hold harmless distributions to local governments to offset certain food and health care deductions permanent at fifty percent of the deductions claimed. Specifically, the bill amends the existing law to: 1. Provide that for municipalities that did not have a municipal hold harmless gross receipts tax in effect on June 30, 2019, the distribution will be equal to 50% of the total deductions claimed by taxpayers from business locations attributable to the municipality for the food and health care practitioner services deductions. 2. For municipalities that did have a municipal hold harmless gross receipts tax in effect on June 30, 2019, the distribution will be 50% of the total deductions claimed. 3. Similar changes are made for the distribution to counties, with the threshold based on whether the county had a county hold harmless gross receipts tax in effect on June 30, 2019 and the county's population. 4. The bill makes these distributions permanent, rather than phasing them out over time as in the existing law. The purpose of these changes is to continue providing local governments with funding to offset the revenue losses they experience due to the statewide food and health care practitioner services deductions.

Budget and Finance

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=27&year=22