HOUSE BILL 307
48th legislature - STATE OF NEW MEXICO - second session, 2008
INTRODUCED BY
Justine Fox-Young
AN ACT
RELATING TO TAX ADMINISTRATION; PROVIDING FOR A REDUCED DISTRIBUTION OF GROSS RECEIPTS TAX REVENUE TO CERTAIN MUNICIPALITIES THAT IMPOSE CIVIL, RATHER THAN CRIMINAL, PENALTIES FOR VIOLATION OF THE MOTOR VEHICLE CODE OR THE MUNICIPALITY'S TRAFFIC CODE; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-1-6.4 NMSA 1978 (being Laws 1983, Chapter 211, Section 9, as amended) is amended to read:
"7-1-6.4. DISTRIBUTION--MUNICIPALITY FROM GROSS RECEIPTS TAX.--
A. Except as provided in Subsection B, C or D of this section, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each municipality in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the product of the quotient of one and two hundred twenty-five thousandths percent divided by the tax rate imposed by Section 7-9-4 NMSA 1978 multiplied by the net receipts for the month attributable to the gross receipts tax from business locations:
(1) within that municipality;
(2) on land owned by the state, commonly known as the "state fairgrounds", within the exterior boundaries of that municipality;
(3) outside the boundaries of any municipality on land owned by that municipality; and
(4) on an Indian reservation or pueblo grant in an area that is contiguous to that municipality and in which the municipality performs services pursuant to a contract between the municipality and the Indian tribe or Indian pueblo if:
(a) the contract describes an area in which the municipality is required to perform services and requires the municipality to perform services that are substantially the same as the services the municipality performs for itself; and
(b) the governing body of the municipality has submitted a copy of the contract to the secretary.
B. If the reduction made by Laws 1991, Chapter 9, Section 9 to the distribution under this section impairs the ability of a municipality to meet its principal or interest payment obligations for revenue bonds outstanding prior to July 1, 1991 that are secured by the pledge of all or part of the municipality's revenue from the distribution made under this section, then the amount distributed pursuant to this section to that municipality shall be increased by an amount sufficient to meet any required payment, provided that the distribution amount does not exceed the amount that would have been due that municipality under this section as it was in effect on June 30, 1992.
C. A distribution pursuant to this section may be adjusted for a distribution made to a tax increment development district with respect to a portion of a gross receipts tax increment dedicated by a municipality pursuant to the Tax Increment for Development Act.
D. For a municipality, including a home rule municipality, that imposes civil, rather than criminal, penalties for a violation of the Motor Vehicle Code or a violation of the municipality's traffic code, the distribution pursuant to Subsection A of this section shall be adjusted pursuant to the following provisions:
(1) on July 1 of each year, the secretary of finance and administration shall determine the amount in civil penalties, fines or other assessments collected during the previous fiscal year by the municipality for violations of the Motor Vehicle Code or the municipality's traffic code. The secretary shall notify the secretary of taxation and revenue of the determination;
(2) except as provided in Paragraph (3) of this subsection, subsequent distributions in the current fiscal year to the municipality shall be withheld until the total amount of withheld distributions equals the amount determined pursuant to Paragraph (1) of this subsection;
(3) if the municipality has issued revenue bonds prior to February 1, 2008 that are secured by the pledge of all or part of the municipality's revenue from the distribution made under this section, then until the total amount of withheld distributions equals the amount determined pursuant to Paragraph (1) of this subsection, the amount distributed to the municipality in the current fiscal year shall be equal to the lesser of:
(a) the amount sufficient to meet any required payment due on the revenue bonds; or
(b) the amount that would otherwise be distributed to the municipality except for the provisions of this subsection; and
(4) a distribution shall be made to the state general fund in an amount equal to the amount of distributions withheld pursuant to this subsection."
Section 2. TEMPORARY PROVISION--DETERMINATION AND DISTRIBUTIONS DURING FISCAL YEAR 2009.--
A. In lieu of the determination otherwise required by Paragraph (1) of Subsection D of Section 7-1-6.4 NMSA 1978, the determination to be made on July 1, 2008 shall be the amount in civil penalties, fines or other assessments collected during the previous two fiscal years instead of the previous fiscal year.
B. During fiscal year 2009, Paragraphs (2), (3) and (4) of Subsection D of Section 7-1-6.4 NMSA 1978 shall apply to the determination made pursuant to Subsection A of this section.
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