SENATE BILL 172
51st legislature - STATE OF NEW MEXICO - second session, 2014
INTRODUCED BY
Lee S. Cotter
AN ACT
RELATING TO TAXATION; LIMITING THE USE OF CERTAIN PROCEEDS OF THE COUNTY REGIONAL SPACEPORT GROSS RECEIPTS TAX.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 5-16-13 NMSA 1978 (being Laws 2006, Chapter 15, Section 13) is amended to read:
"5-16-13. USE OF REVENUE BY GOVERNMENTAL UNITS.--Each governmental unit that is a county or municipality and is a member of a combination shall have enacted a municipal regional spaceport gross receipts tax or a county regional spaceport gross receipts tax prior to December 31, 2008. At least seventy-five percent of the municipal regional spaceport gross receipts tax or county regional spaceport gross receipts tax revenues received by each governmental unit must be used by the district for the financing, planning, designing, engineering and construction of a regional spaceport; provided that proceeds of the county regional spaceport gross receipts tax that are received on or after July 1, 2014, but that were dedicated to the district prior to July 1, 2014 pursuant to Subsection B of Section 7-20E-25 NMSA 1978, shall only be used to pay principal and interest on bonds issued pursuant to the Spaceport Development Act to which the proceeds have been pledged, for acceleration of the payment of principal and interest on those bonds or to retire or discharge that bond debt prior to the original term of those bonds. No more than twenty-five percent of the municipal regional spaceport gross receipts tax or county regional spaceport gross receipts tax revenues may be used by the governmental unit enacting the tax for spaceport-related projects as approved by resolution of the governmental unit."
SECTION 2. Section 7-20E-25 NMSA 1978 (being Laws 2006, Chapter 15, Section 15) is amended to read:
"7-20E-25. COUNTY REGIONAL SPACEPORT GROSS RECEIPTS TAX--AUTHORITY TO IMPOSE--RATE--ELECTION REQUIRED.--
A. A majority of the members of the governing body of a county that desires to become a member of a regional spaceport district pursuant to the Regional Spaceport District Act shall impose by ordinance an excise tax at a rate not to exceed one-half percent of the gross receipts of a person engaging in business in the district area of the county for the privilege of engaging in business. A tax imposed pursuant to this section may be imposed by one or more ordinances, each imposing any number of tax rate increments, but an increment shall not be less than one-sixteenth percent of the gross receipts of a person engaging in business in the district area of the county, and the aggregate of all rates shall not exceed one-half percent of the gross receipts of a person engaging in business in the district area of the county. The tax may be referred to as the "county regional spaceport gross receipts tax".
B. A governing body, at the time of enacting an ordinance imposing the tax authorized in Subsection A of this section, shall dedicate a minimum of seventy-five percent of the proceeds of the revenue to the regional spaceport district for the financing, planning, designing and engineering and construction of a spaceport or for projects or services of the district pursuant to the Regional Spaceport District Act and may dedicate no more than twenty-five percent of the revenue for spaceport-related projects as approved by resolution of the governing body of the county; provided that proceeds of the revenues that are received on or after July 1, 2014, but that were dedicated to the district prior to July 1, 2014, shall only be used to pay principal and interest on bonds issued pursuant to the Spaceport Development Act to which the proceeds have been pledged, for acceleration of the payment of principal and interest on those bonds or to retire or discharge that bond debt prior to the original term of those bonds.
C. An ordinance imposing a county regional spaceport gross receipts tax shall not go into effect until after an election is held and a majority of the voters of the district area of the county voting in the election votes in favor of imposing the tax. The governing body shall adopt an ordinance calling for an election within seventy-five days of the date the resolution is adopted on the question of imposing the tax. The question shall be submitted to the voters of the district area of the county as a separate question at a general election or at a special election called for that purpose by the governing body. A special election shall be called, conducted and canvassed substantially in the same manner as provided by law for general elections. If a majority of the voters voting on the question approves the ordinance imposing the county regional spaceport gross receipts tax, the ordinance shall become effective in accordance with the provisions of the County Local Option Gross Receipts Taxes Act. If the question of imposing the county regional spaceport gross receipts tax fails, the governing body shall not again propose the imposition of an increment of the tax for a period of one year from the date of the election.
D. The governing body of a county imposing a county regional spaceport gross receipts tax shall transfer a minimum of seventy-five percent of all proceeds from the tax to the regional spaceport district of which it is a member for the purposes in accordance with the provisions of the Regional Spaceport District Act. The governing body of a county imposing a county regional spaceport gross receipts tax may retain no more than twenty-five percent of the county regional spaceport gross receipts tax for spaceport-related projects as approved by the resolution of the governing body of the county.
E. As used in this section, "district area of the county" means that portion of a county that is outside the boundaries of a municipality and that is within the boundaries of a regional spaceport district of which the county is a member; provided that if no municipality within the county has imposed a municipal regional spaceport gross receipts tax, "district area of the county" may mean the area within the boundaries of the county that is within the boundaries of a regional spaceport district of which the county is a member."
SECTION 3. Section 58-31-5 NMSA 1978 (being Laws 2005, Chapter 128, Section 5, as amended) is amended to read:
"58-31-5. AUTHORITY POWERS AND DUTIES.--
A. The authority shall:
(1) hire an executive director, who shall employ the necessary professional, technical and clerical staff to enable the authority to function efficiently and shall direct the affairs and business of the authority, subject to the direction of the authority;
(2) be located within fifty miles of a southwest regional spaceport;
(3) advise the governor, the governor's staff and the New Mexico finance authority oversight committee on methods, proposals, programs and initiatives involving a southwest regional spaceport that may further stimulate space-related business and employment opportunities in New Mexico;
(4) initiate, develop, acquire, own, construct, maintain and lease space-related projects;
(5) make and execute all contracts and other instruments necessary or convenient to the exercise of its powers and duties;
(6) create programs to expand high-technology economic opportunities within New Mexico;
(7) create avenues of communication among federal government agencies, the space industry, users of space launch services and academia concerning space business;
(8) promote legislation that will further the goals of the authority and development of space business;
(9) oversee and fund production of promotional literature related to the authority's goals;
(10) identify science and technology trends that are significant to space enterprise and the state and act as a clearinghouse for space enterprise issues and information;
(11) coordinate and expedite the involvement of the state executive branch's space-related development efforts; and
(12) perform environmental, transportation, communication, land use and other technical studies necessary or advisable for projects and programs or to secure licensing by appropriate United States agencies.
B. The authority may:
(1) advise and cooperate with municipalities, counties, state agencies and organizations, appropriate federal agencies and organizations and other interested persons and groups;
(2) solicit and accept federal, state, local and private grants of funds or property and financial or other aid for the purpose of carrying out the provisions of the Spaceport Development Act;
(3) adopt rules governing the manner in which its business is transacted and the manner in which the powers of the authority are exercised and its duties performed;
(4) operate spaceport facilities, including acquisition of real property necessary for spaceport facilities and the filing of necessary documents with appropriate agencies;
(5) construct, purchase, accept donations of or lease projects located within the state;
(6) sell, lease or otherwise dispose of a project upon terms and conditions acceptable to the authority and in the best interests of the state;
(7) issue revenue bonds and borrow money for the purpose of defraying the cost of acquiring a project by purchase or construction and of securing the payment of the bonds or repayment of a loan;
(8) enter into contracts with regional spaceport districts and issue bonds on behalf of regional spaceport districts for the purpose of financing the purchase, construction, renovation, equipping or furnishing of a regional spaceport or a spaceport-related project; (9) refinance a project;
(10) contract with any competent private or public organization or individual to assist in the fulfillment of its duties;
(11) fix, alter, charge and collect tolls, fees or rentals and impose any other charges for the use of or for services rendered by any authority facility, program or service; and
(12) contract with regional spaceport districts to receive municipal spaceport gross receipts tax and county regional spaceport gross receipts tax revenues.
C. The authority shall not:
(1) incur debt as a general obligation of the state or pledge the full faith and credit of the state to repay debt; [or]
(2) expend funds or incur debt for the improvement, maintenance, repair or addition to property unless it is owned by the authority, the state or a political subdivision of the state; or
(3) expend county regional spaceport gross receipts tax revenue received on or after July 1, 2014 pursuant to Paragraph (12) of Subsection B of this section for a purpose other than to pay principal and interest on bonds issued pursuant to the Spaceport Development Act to which the revenue has been pledged, for acceleration of the payment of principal and interest on those bonds or to retire or discharge that bond debt prior to the original term of those bonds."
SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2014.
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