New Mexico 2022 Regular Session

New Mexico Senate Bill SB27

Introduced
1/18/22  
Report Pass
1/19/22  

Caption

Local Governments Hold Harmless Deductions

Impact

The provisions of SB27 have a significant impact on the financial landscape of small municipalities, especially those with populations under a certain threshold. By ensuring a permanent hold harmless distribution, these municipalities will likely face less fiscal uncertainty. This change allows for better budgetary planning and the potential for continued public services funded by stable tax revenue. Consequently, local governments will be able to meet their fiscal obligations, including servicing any municipal bonds that may be outstanding.

Summary

Senate Bill 27 aims to make the hold harmless distributions to local governments for certain food and health care deductions permanent at a rate of fifty percent of the deductions claimed. This legislative move is designed to provide stability in financial support for municipalities, particularly those that did not implement a hold harmless gross receipts tax by a specified date. The bill addresses distributions under the existing New Mexico laws concerning local government revenues and aims to enhance fiscal predictability for affected municipalities.

Contention

There may be points of contention among stakeholders. While proponents of the bill argue that the permanent distribution is essential for municipalities to maintain necessary public services without the threat of revenue shortfalls, critics might contend that it limits the flexibility of local governance in addressing unique fiscal circumstances or the specific needs of their communities. Additionally, questions may arise regarding the long-term sustainability of such distributions in the context of overall state tax revenue and fiscal health.

Companion Bills

No companion bills found.

Previously Filed As

NM SB26

Hold Harmless Distributions

NM SB121

Temporary Grt Deductions For Restaurants

NM HB79

Firearm & Ammo Gross Receipts

NM HB218

Tax Changes

NM SB173

Geothermal Energy Generation Tax Credit

NM HB325

Housing Construction Tax Credit

NM HB323

Change Name Of Gross Receipts Tax

NM HB92

Geothermal Electricity Generation Tax Credits

NM HB1229

Local government finance.

NM HB237

Gross Receipts Credit For Certain Businesses

Similar Bills

NM SB26

Hold Harmless Distributions

NM HB119

Adjust Certain School Distributions

NM SB131

Public School Funding Changes

NM SB121

Temporary Grt Deductions For Restaurants

NM SB236

Metro Development Project Grt Increments

NM HB79

Firearm & Ammo Gross Receipts

NM HB325

Housing Construction Tax Credit

NM SB2

Judicial Retirement Changes