44th legislature - STATE OF NEW MEXICO - second session, 2000

RELATING TO TAXATION; AUTHORIZING CERTAIN CLASS A COUNTIES TO IMPOSE A LOCAL LIQUOR EXCISE TAX; AMENDING AND ENACTING CERTAIN SECTIONS OF THE LOCAL LIQUOR EXCISE TAX ACT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 7-24-9 NMSA 1978 (being Laws 1989, Chapter 326, Section 2) is amended to read:

"7-24-9. DEFINITIONS.--As used in the Local Liquor Excise Tax Act:

A. "alcoholic beverages" means distilled or rectified spirits, potable alcohol, brandy, whiskey, rum, gin and aromatic bitters or any similar alcoholic beverage, including blended or fermented beverages, dilutions or mixtures of one or more of the foregoing containing more than one-half of one percent alcohol, but excluding medicinal bitters;

[B. "county" means a class B county having a population of more than fifty-six thousand but less than seventy-five thousand, according to the most recent federal decennial census or any subsequent decennial census, and having a net taxable value for rate-setting purposes for the 1988 or any subsequent property tax year of more than five hundred million dollars ($500,000,000) but less than seven hundred million dollars ($700,000,000);

C.] B. "department" means the taxation and revenue department, the secretary of taxation and revenue or any employee of the department exercising authority lawfully delegated to that employee by the secretary;

[D.] C. "governing body" means the board of county commissioners of a county;

[E.] D. "person" means any individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, joint venture, syndicate or other association; "person" also means, to the extent permitted by law, any federal, state or other governmental unit or subdivision or agency, department or instrumentality thereof;

[F.] E. "price" means the total amount of money or the reasonable value of other consideration or both paid for alcoholic beverages, inclusive of the amount of any tax paid pursuant to the Liquor Excise Tax Act; and

[G.] F. "retailer" means any person having a place of business within the county who sells, offers for sale or possesses for the purpose of selling alcoholic beverages within the county."

Section 2. Section 7-24-10 NMSA 1978 (being Laws 1989, Chapter 326, Section 3) is amended to read:

"7-24-10. AUTHORIZATION FOR CERTAIN CLASS B COUNTIES TO IMPOSE LOCAL LIQUOR EXCISE TAX--RATE--USE OF PROCEEDS--ELECTION REQUIRED.--

A. A class B county having a population of more than fifty-six thousand but less than seventy-five thousand, according to the most recent federal decennial census or any subsequent decennial census, and having a net taxable value for rate-setting purposes for the 1988 or any subsequent property tax year of more than five hundred million dollars ($500,000,000) but less than seven hundred million dollars ($700,000,000) may impose a local liquor excise tax by following the procedures of this section.

[A.] B. The majority of the members elected to the governing body may enact an ordinance imposing on any retailer an excise tax on the price paid by the retailer for alcoholic beverages purchased by the retailer upon which the tax imposed by this section has not been paid. The tax may be imposed at a rate not to exceed five percent; provided that any lower rate shall be an even multiple of one percent. The tax imposed under this section and Section 7-24-10.2 NMSA 1978 may be referred to as the "local liquor excise tax". Any tax imposed under this section shall be for a period of not more than three years from the effective date of the ordinance imposing the tax.

[B.] C. The governing body at the time of enacting an ordinance imposing the tax authorized in Subsection [A] B of this section shall dedicate the revenue to fund educational programs and prevention and treatment of alcoholism and drug abuse within the county and for no other purpose. After approval of the imposition of a local liquor excise tax by the voters but before the effective date of the ordinance, the governing body shall hold a public meeting for the purpose of inviting comment on and suggestions for the most appropriate programs on which to expend the revenue produced by the tax. The governing body shall invite representatives from the appropriate Indian tribes, nations and pueblos to the meeting. If the governing body awards any contract using funds derived from the local liquor excise tax, it shall do so only through a selection process requiring submission of sealed bids or proposals after public notice of the opportunity to submit the sealed bids or proposals.

[C.] D. The governing body enacting an ordinance imposing the local liquor excise tax shall submit the question of imposing the tax to the qualified voters of the county at a regular or special election.

[D.] E. Only those voters who are registered within the county shall be permitted to vote. The election shall be called, conducted and canvassed in substantially the same manner as provided by law for general elections.

[E.] F. If at an election called pursuant to this section a majority of the voters voting on the question [vote] votes in the affirmative on the question, then the ordinance imposing the local liquor excise tax shall be approved. If at such an election a majority of the voters voting on the question [fail] fails to approve the question, then the ordinance shall be disapproved and the question required to be submitted by Subsection [B] C of this section shall not be submitted to the voters for a period of at least one year from the date of the election.

[F.] G. Any ordinance enacted under the provisions of this section [which] that imposes a local liquor excise tax or changes the rate of tax imposed shall include an effective date, which is the first day of any month [which] that begins no earlier than ninety days after the date of the election. A certified copy of any ordinance imposing a local liquor excise tax shall be mailed or personally delivered to the department within five days after the ordinance is certified to have been approved by the voters.

[G.] H. Any ordinance repealing the imposition of a tax under the provisions of this section shall contain an effective date which is the first day of any month beginning no earlier than sixty days from the date the ordinance repealing the tax is adopted by the governing body. A certified copy of any ordinance repealing a local liquor excise tax shall be mailed or personally delivered to the department within five days of the date the ordinance is adopted."

Section 3. Section 7-24-10.1 NMSA 1978 (being Laws 1992, Chapter 35, Section 1) is amended to read:

"7-24-10.1. USE OF TAX PROCEEDS BY CLASS B COUNTIES--LOCAL LIQUOR EXCISE TAX COMMITTEE--JOINT POWERS AGREEMENT--COMMUNITY PARTICIPATION.--

A. Prior to [the] an election on the question of imposing a local liquor excise tax pursuant to [the Local Liquor Excise Tax Act] Section 7-24-10 NMSA 1978, the governing body [of a county] shall enter into a joint powers agreement with the governing body of the most populated municipality and the governing bodies of any other municipalities in the county that choose to be parties to the agreement to provide for the use and administration of the tax proceeds. The agreement shall provide for the establishment and appointment of a local liquor excise tax committee to provide advice, assist in preventing duplication and supplanting of program funding and make recommendations to the governing body of [a] the county and the municipal governing bodies that are parties to the agreement on the use of the tax proceeds and may include agreements that:

(1) clearly specify the use of the proceeds of the proposed local liquor excise tax, including the identification of specific local programs, agencies or entities that will be funded from the tax proceeds; and

(2) determine the allocation of election expenses among the parties to the agreement.

B. Prior to [any] the agreement by the governing body of a county and the municipal governing bodies for use of the proposed local liquor excise tax proceeds, the local liquor excise tax committee established pursuant to the [joint powers agreement in] provisions of Subsection A of this section shall conduct a public hearing for the purpose of inviting public comment on use of the proposed local liquor excise tax proceeds. The committee shall make every effort to provide public notice of the hearing and to invite a broad cross-section of community representatives and groups to comment on community needs. Following the hearing, the committee shall make its funding recommendations to the governing body of [a] the county and the municipal governing bodies."

Section 4. A new section of the Local Liquor Excise Tax Act, Section 7-24-10.2 NMSA 1978, is enacted to read:

"7-24-10.2. [NEW MATERIAL] AUTHORIZATION FOR CERTAIN CLASS A COUNTIES TO IMPOSE LOCAL LIQUOR EXCISE TAX--RATE--ELECTION REQUIRED.--

A. A class A county having a population of three hundred thousand or more, according to the most recent federal decennial census or any subsequent decennial census, may impose a local liquor excise tax by following the procedures of this section.

B. Upon the vote of a majority of the members elected to the governing body or upon a petition filed with the county clerk and signed by no less than fifteen percent of the registered voters in the county, the governing body shall enact an ordinance imposing on each retailer an excise tax on the price paid by the retailer for alcoholic beverages purchased by the retailer upon which the tax imposed by this section has not been paid. The tax may be imposed at a rate not to exceed three percent; provided that any lower rate shall be an even multiple of one percent. The tax imposed by this section and Section 7-24-10 NMSA 1978 may be referred to as the "local liquor excise tax". Any tax imposed pursuant to this section shall be for a period of not more than five years from the effective date of the ordinance imposing the tax.

C. No ordinance imposing a local liquor excise tax pursuant to this section shall take effect until after an election is held and a majority of the registered voters of the county voting in the election vote in favor of imposing the tax. The question of imposing the local liquor excise tax shall be submitted to the registered voters of the county at any general election or a special election called by the governing body for that purpose within ninety days after the date the ordinance imposing the tax is adopted.

D. If, at an election called pursuant to this section, a majority of the voters voting on the question votes in the affirmative on the question, then the ordinance imposing the local liquor excise tax shall be approved. If, at the election, a majority of the voters voting on the question fails to approve the question, then the ordinance shall be disapproved and the governing body shall not enact another ordinance imposing the tax for a period of at least one year from the date of the election.

E. An ordinance imposing a local liquor excise tax pursuant to the provisions of this section shall include an effective date of either July 1 or January 1, whichever date occurs first after the expiration of at least three months from the date the results of the election are certified to be in favor of its adoption. A certified copy of any ordinance imposing a local liquor excise tax shall be mailed or personally delivered to the department within five days after the ordinance is certified to have been approved by the voters."

Section 5. A new section of the Local Liquor Excise Tax Act, Section 7-24-10.3 NMSA 1978, is enacted to read:

"7-24-10.3. [NEW MATERIAL] USE OF TAX PROCEEDS BY CLASS A COUNTIES--LOCAL LIQUOR EXCISE TAX COMMITTEE.--

A. All proceeds from the local liquor excise tax imposed by class A county pursuant to Section 7-24-10.2 NMSA 1978 shall be deposited in a separate fund created by the governing body and shall not be deposited in the county general fund. Income earned on the separate fund shall be credited to the fund. The fund shall be expended only for the following purposes:

(1) funding an alcohol detoxification and treatment facility located within the county and operated jointly by the county and the most populated incorporated municipality within the county; and

(2) funding new or expanded programs for education and prevention and treatment of the misuse or abuse of alcohol or other drugs.

B. In funding programs and facilities pursuant to Subsection A of this section, the county and the most populated incorporated municipality in the county may contract for the provision of treatment with the university of New Mexico medical center or any other qualified provider.

C. Prior to an election on the question of imposing a local liquor excise tax pursuant to Section 7-24-10.2 NMSA 1978, the governing body shall appoint a local liquor excise tax committee, including representatives of the Class A county and the most populated incorporated municipality within the county, to provide advice, assist in preventing duplication and supplanting of program funding and make recommendations to the county and the incorporated municipalities within the county on the use of tax proceeds, including recommendations that clearly specify the use of the proceeds of the proposed local liquor excise tax, including the identification of specific local programs, agencies or entities that will be funded from the tax proceeds.

D. As used in this section:

(1) "programs for education and prevention" means efforts designed to promote avoidance of the misuse or abuse of alcohol or other drugs and includes school-based education programs, community-based education programs, early intervention services, court ordered remedial services, peer support services, community mobilization and prevention projects and special projects to serve high-risk populations; and

(2) "treatment" means organized, clinically appropriate intervention designed to rehabilitate those who misuse or abuse alcohol or other drugs and to provide support services for the victim of that misuse or abuse. "Treatment" includes outpatient counseling, aftercare and relapse intervention, family counseling, residential treatment, mental health treatment, inpatient treatment, detoxification, social and medical services, vocational services, education and special projects to serve groups in need of expanded treatment resources."

Section 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2000.