SENATE BILL 595
49th legislature - STATE OF NEW MEXICO - first session, 2009
INTRODUCED BY
George K. Munoz
AN ACT
RELATING TO TAXATION; IMPOSING A STATE LODGERS' SURTAX ON GROSS RECEIPTS OF THE HOSPITALITY INDUSTRY; CREATING FUNDS; MAKING APPROPRIATIONS.
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--STATE LODGERS' SURTAX.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 of the net receipts attributable to the state lodgers' surtax shall be made as follows:
A. fifty percent of the amount shall be distributed to the state lodgers' education fund;
B. thirty percent of the amount shall be distributed to the state lodgers' economic development fund; and
C. twenty percent of the amount shall be distributed to the general fund."
Section 2. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:
"[NEW MATERIAL] GROSS RECEIPTS--STATE LODGERS' SURTAX.--
A. For the privilege of transacting business as a hotelkeeper in this state there is imposed a surtax on the gross receipts of any hotelkeeper in New Mexico. The surtax may be referred to as the "state lodgers' surtax". The state lodgers' surtax shall be imposed at a rate of ten percent on the gross receipts of a hotelkeeper. The department shall administer and enforce collection of the state lodgers' surtax pursuant to the provisions of the Tax Administration Act and the Gross Receipts and Compensating Tax Act in the same manner as the gross receipts tax.
B. As used in this section:
(1) "hotelkeeper" means a person who furnishes tourist accommodations to a renter;
(2) "renter" means a person to whom tourist accommodations are furnished; and
(3) "tourist accommodation" means a hotel, apartment, apartment hotel, apartment house, lodge, lodging house, rooming house, motor hotel, guest house, guest ranch, ranch resort, guest resort, mobile home, motor court, auto court, auto camp, trailer court, trailer camp, trailer park, tourist camp, cabin or other premises used for accommodation. "Tourist accommodation" does not include:
(a) accommodations at religious, charitable, educational or philanthropic institutions, including summer camps operated by such institutions;
(b) clinics, hospitals or other medical facilities;
(c) privately owned and operated convalescent homes or homes for the aged, infirm, indigent or chronically ill;
(d) accommodations that do not have at least three rooms or other units of accommodation;
(e) accommodations for which a renter has paid less than two dollars ($2.00) per day; or
(f) accommodations made pursuant to an agreement with a renter who has been a permanent resident of the tourist accommodation for a period of at least thirty consecutive days or a renter who enters into or has entered into a written agreement for rental of the tourist accommodation for a period of at least thirty consecutive days."
Section 3. [NEW MATERIAL] STATE LODGERS' EDUCATION FUND--CREATED--PURPOSE--APPROPRIATIONS.--
A. The "state lodgers' education fund" is created as a nonreverting fund in the state treasury and shall be administered by the public education department. The fund shall consist of money from distributions of the state lodgers' surtax pursuant to Section 7-1-6.1 NMSA 1978 and money that is appropriated or donated or that otherwise accrues to the fund. Money in the fund shall be invested by the state investment officer in the manner that land grant permanent funds are invested pursuant to Chapter 6, Article 8 NMSA 1978. Income from investment of the fund shall be credited to the fund.
B. The public education department shall establish procedures and adopt rules as required to administer the fund, which shall include rules requiring that any recipient of money from the fund shall have complied with all state audit requirements, and shall require the entity to establish that it has received an unqualified audit within the past twelve months.
C. Money in the fund shall be disbursed only on warrant of the secretary of finance and administration upon vouchers signed by the secretary of public education or the secretary's authorized representative. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.
Section 4. [NEW MATERIAL] STATE LODGERS' ECONOMIC DEVELOPMENT FUND--CREATED--PURPOSE--APPROPRIATIONS.--
A. The "state lodgers' economic development fund" is created as a nonreverting fund in the state treasury and shall be administered by the economic development department. The fund shall consist of money from distributions of the state lodgers' surtax pursuant to Section 7-1-6.1 NMSA 1978 and money that is appropriated or donated or that otherwise accrues to the fund. Money in the fund shall be invested by the state investment officer in the manner that land grant permanent funds are invested pursuant to Chapter 6, Article 8 NMSA 1978. Income from investment of the fund shall be credited to the fund.
B. The economic development department shall establish procedures and adopt rules as required to administer the fund, which shall include rules requiring that any recipient of money from the fund shall have complied with all state audit requirements, and shall require the entity to establish that it has received an unqualified audit within the past twelve months.
C. Money in the fund shall be disbursed only on warrant of the secretary of finance and administration upon vouchers signed by the secretary of economic development or the secretary's authorized representative. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.
Section 5. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2010.