45th legislature - STATE OF NEW MEXICO - second session, 2002

RELATING TO THE GAMING TAX; DISTRIBUTING A PERCENTAGE OF GAMING TAX REVENUES GENERATED BY A RACETRACK GAMING OPERATOR LICENSEE TO THE MUNICIPALITY AND SCHOOL DISTRICT IN WHICH THE RACETRACK IS LOCATED TO PROVIDE FUNDS FOR CAPITAL IMPROVEMENTS; RECONCILING MULTIPLE AMENDMENTS TO THE SAME SECTION OF LAW IN LAWS 2001; MAKING AN APPROPRIATION.

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

Section 1. A new section of the Tax Administration Act is enacted to read:

"[NEW MATERIAL] DISTRIBUTION--GAMING TAX.--For fiscal years 2003 through 2013, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each municipality with a population between ten thousand and twenty thousand according to the latest federal decennial census in which a racetrack gaming operator licensee is located in an amount equal to five percent of the net receipts attributable to the gaming tax paid by the racetrack gaming operator licensee, and a distribution to each school district located wholly or partially within a municipality that receives a distribution shall be made in an amount equal to five percent of the net receipts attributable to the gaming tax paid by the racetrack gaming operator licensee located in the municipality."

Section 2. Section 60-2E-47 NMSA 1978 (being Laws 1997, Chapter 190, Section 49, as amended by Laws 2001, Chapter 256, Section 1 and aby Laws 2001, Chapter 262, Section 3) is amended to read:

"60-2E-47. GAMING TAX--IMPOSITION--ADMINISTRATION.--

A. An excise tax is imposed on the privilege of engaging in gaming activities in the state. This tax shall be known as the "gaming tax".

B. The gaming tax is an amount equal to ten percent of the gross receipts of manufacturer licensees from the sale, lease or other transfer of gaming devices in or into the state, except receipts of a manufacturer from the sale, lease or other transfer to a licensed distributor for subsequent sale or lease may be excluded from gross receipts; ten percent of the gross receipts of distributor licensees from the sale, lease or other transfer of gaming devices in or into the state; ten percent of the net take of a gaming operator licensee that is a nonprofit organization; and twenty-five percent of the net take of every other gaming operator licensee. For the purposes of this section, "gross receipts" means the total amount of money or the value of other consideration received from selling, leasing or otherwise transferring gaming devices.

C. The gaming tax imposed on a licensee is in lieu of all state and local gross receipts taxes on that portion of the licensee's gross receipts attributable to gaming activities.

D. The gaming tax is to be paid on or before the fifteenth day of the month following the month in which the taxable event occurs. The gaming tax shall be administered and collected by the taxation and revenue department in cooperation with the board. The provisions of the Tax Administration Act apply to the collection and administration of the tax.

E. In addition to the gaming tax, a gaming operator licensee that is a racetrack shall pay twenty percent of its net take to purses to be distributed in accordance with rules adopted by the state racing commission. An amount not to exceed twenty percent of the interest earned on the balance of any fund consisting of money for purses distributed by racetrack gaming operator licensees pursuant to this subsection may be expended for the costs of administering the distributions. A racetrack gaming operator licensee shall spend no less than one-fourth of one percent of the net take of its gaming machines to fund or support programs for the treatment and assistance of compulsive gamblers.

F. A nonprofit gaming operator licensee shall distribute at least sixty percent of the balance of its net take, after payment of the gaming tax and any income taxes,

for charitable or educational purposes.

G. A municipality receiving a distribution pursuant to Section 1 of this act of a percentage of gaming tax revenues generated by a racetrack gaming operator licensee located within the municipality shall use those revenues for acquisition, construction or capital improvements of municipal infrastructure.

H. A school district receiving a distribution pursuant to Section 1 of this act of a percentage of gaming tax revenues generated by a racetrack gaming operator licensee shall use those revenues for capital improvements at public schools whose attendance areas include the racetrack gaming operator licensee's premises. For the purposes of this subsection, "capital improvements" means expenditures, excluding other debt service expenses, for:

(1) erecting, remodeling, making additions to, providing equipment for or furnishing public school buildings;

(2) purchasing or improving public school grounds;

(3) maintenance of public school buildings or public school grounds, exclusive of salary expenses of school district employees;

(4) purchasing activity vehicles for transporting students to extracurricular school activities; and

(5) purchasing computer software and hardware for student use in public school classrooms."

Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is August 1, 2002.