SENATE BILL 105
52nd legislature - STATE OF NEW MEXICO - first session, 2015
INTRODUCED BY
Richard C. Martinez
AN ACT
RELATING TO TAXATION; ENACTING AUTHORITY TO IMPOSE A SPECIAL COUNTY EDUCATION GROSS RECEIPTS TAX DEDICATED TO PAYMENT FOR BONDS FOR PUBLIC SCHOOL CAPITAL OUTLAY IMPROVEMENTS FOR QUALIFYING COUNTIES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the County Local Option Gross Receipts Taxes Act is enacted to read:
"[NEW MATERIAL] SPECIAL COUNTY EDUCATION GROSS RECEIPTS TAX--AUTHORITY TO IMPOSE--RATE--ELECTION--USE OF REVENUE.--
A. Upon submission of a resolution to the governing body pursuant to Subsection D of this section, the governing body of a county shall enact an ordinance imposing an excise tax at a rate of three-fourths percent on any person engaging in business in the county for the privilege of engaging in business in the county. The tax imposed pursuant to this section may be referred to as the "special county education gross receipts tax".
B. The governing body of a county, at the time of enacting an ordinance imposing a special county education gross receipts tax pursuant to this section, shall dedicate the revenue only for the payment of special county education gross receipts tax revenue bonds for public school capital improvements for participating school districts, locally chartered charter schools and state-chartered charter schools in the county. The tax shall be imposed for the period necessary for payment of the principal and interest on the special county education gross receipts tax revenue bonds issued to accomplish the purpose for which the revenue is dedicated, but the period for a tax shall not exceed twenty years from the effective date of the ordinance imposing the tax.
C. The governing body of a county may reimpose a special county education gross receipts tax to be effective upon termination of a previously imposed special county education gross receipts tax by following the procedure set forth in this section.
D. Upon a finding of need, the boards of each participating school district, locally chartered charter school and state-chartered charter school in a county that is located either wholly within the exterior boundaries of the county or that has a student membership no more than fifty percent of which resides outside the exterior boundaries of the county may enter into a joint agreement to submit a resolution to the governing body of the county requiring the governing body to impose a special county education gross receipts tax and to issue special county education gross receipts tax revenue bonds for funding public school capital improvements for participating school districts, locally chartered charter schools and state-chartered charter schools. The revenues shall be distributed proportionately to each of the participating school districts, locally chartered charter schools and state-chartered charter schools for capital improvements based on the ratio of the enrollment for the fortieth day of the school year, as submitted to the public education department's student teacher accountability reporting system, to the total student enrollment of all those school districts, locally chartered charter schools and state-chartered charter schools. The board of any participating school district, locally chartered charter school or state-chartered charter school may decline to participate and thereby become ineligible to receive a proportionate share of the bond proceeds.
E. An ordinance imposing the special county education gross receipts tax shall not go into effect until after an election is held and a majority of the voters in the county voting in the election votes in favor of imposing the tax. The governing body of the county shall adopt a resolution calling for an election within sixty days of the date the ordinance is adopted on the question of imposing the tax. The question shall be submitted to the voters 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 in substantially 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 special county education gross receipts tax, then 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 special county education gross receipts tax fails, a resolution from the boards of the school districts, locally chartered charter schools and state-chartered charter schools in the county may not again be proposed to the governing body requesting imposition of the tax for a period of one year from the date of the election.
F. The proceeds from special county education gross receipts tax revenue bonds shall be administered by the governing body of the county and disbursed by the county treasurer to the respective school districts, locally chartered charter schools and state-chartered charter schools in the amounts and for the purposes authorized in this section and as set out in the resolution submitted by the boards to the governing body.
G. As used in this section:
(1) "board" means a board of education of a school district or the governing body of a locally chartered or state-chartered charter school;
(2) "capital improvements" means:
(a) erecting, remodeling, making additions to, providing equipment for or furnishing public school buildings; and
(b) purchasing or improving school grounds;
(3) "county" means a class B county with a population of less than forty-five thousand according to the 2010 federal decennial census and a net taxable value for property tax purposes for the 2012 property tax year of more than one billion five hundred million dollars ($1,500,000,000); and
(4) "equipment" means installation of equipment and technology."
SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2015.
- 5 -