SENATE BILL 635

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

Sander Rue

AN ACT

RELATING TO TAXATION; PROVIDING FOR REMITTANCE OF GOVERNMENTAL GROSS RECEIPTS TAX TO AGENCIES, INSTITUTIONS, INSTRUMENTALITIES AND POLITICAL SUBDIVISIONS OF THE STATE; CONFORMING A REFERENCE IN LAW FROM THE WATER AND WASTEWATER PLANNING FUND TO THE LOCAL GOVERNMENT PLANNING FUND.

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

     SECTION 1. Section 6-21-6.1 NMSA 1978 (being Laws 1994, Chapter 145, Section 2, as amended) is amended to read:

     "6-21-6.1. PUBLIC PROJECT REVOLVING FUND--APPROPRIATIONS TO OTHER FUNDS--REMITTANCE OF GOVERNMENTAL GROSS RECEIPTS TAX REVENUE FROM THE AUTHORITY TO THE TAXATION AND REVENUE DEPARTMENT.--

          A. The authority and the department of environment may enter into a joint powers agreement pursuant to the Joint Powers Agreements Act for the purpose of describing and allocating duties and responsibilities with respect to creation of an integrated loan and grant program to be financed through issuance of bonds payable from the public project revolving fund. The bonds may be issued in installments or at one time by the authority in amounts authorized by law. The aggregate amount of bonds authorized and outstanding pursuant to this subsection shall not be greater than the amount of bonds that may be annually repaid from an amount not to exceed thirty-five percent of the governmental gross receipts tax proceeds distributed to the public project revolving fund in the preceding fiscal year. The net proceeds may be used for purposes of the [water and wastewater] local government planning fund and the water and wastewater project grant fund as specified in the New Mexico Finance Authority Act or for purposes of the Wastewater Facility Construction Loan Act, the Rural Infrastructure Act, the Solid Waste Act or the Drinking Water State Revolving Loan Fund Act.

          B. Public projects funded pursuant to the Wastewater Facility Construction Loan Act, the Rural Infrastructure Act, the Solid Waste Act or the Drinking Water State Revolving Loan Fund Act shall not require specific authorization by law as required in Sections 6-21-6 and 6-21-8 NMSA 1978.

          C. At the end of each fiscal year, after all debt service charges, replenishment of reserves and administrative costs on all outstanding bonds, notes or other obligations payable from the public project revolving fund are satisfied, an aggregate amount not to exceed thirty-five percent of the governmental gross receipts tax proceeds distributed to the public project revolving fund in the preceding fiscal year less all debt service charges and administrative costs of the authority paid in the preceding fiscal year on bonds issued pursuant to this section may be appropriated by the legislature from the public project revolving fund to the following funds for local infrastructure financing:

                (1) the wastewater facility construction loan fund for purposes of the Wastewater Facility Construction Loan Act;

                (2) the rural infrastructure revolving loan fund for purposes of the Rural Infrastructure Act;

                (3) the solid waste facility grant fund for purposes of the Solid Waste Act;

                (4) the drinking water state revolving loan fund for purposes of the Drinking Water State Revolving Loan Fund Act;

                (5) the water and wastewater project grant fund for purposes specified in the New Mexico Finance Authority Act; or

                (6) the [water and wastewater] local government planning fund for purposes specified in the New Mexico Finance Authority Act.

          D. The authority and the department of environment in coordination with the New Mexico finance authority oversight committee may recommend annually to each regular session of the legislature amounts to be appropriated to the funds listed in Subsection C of this section for local infrastructure financing.

          E. Annually, within sixty days of the conclusion of a fiscal year, and after payment of all debt service charges, replenishment of reserves and administrative costs on all outstanding bonds, notes or other obligations payable from the public project revolving loan fund outstanding and owed in the previous fiscal year, the authority shall remit to the taxation and revenue department sixty-five percent of remaining revenue attributable to the governmental gross receipts tax that was distributed to the authority in the previous fiscal year pursuant to Section 7-1-6.38 NMSA 1978. The authority shall annually provide to the department a written accounting of its expenditure of the revenue attributable to the governmental gross receipts tax during the previous fiscal year at the time of the remittance to the department."

     SECTION 2. Section 7-1-6 NMSA 1978 (being Laws 1978, Chapter 55, Section 1, as amended) is amended to read:

     "7-1-6. RECEIPTS--DISBURSEMENTS--FUNDS CREATED.--

          A. All money received by the department with respect to laws administered pursuant to the provisions of the Tax Administration Act shall be deposited with the state treasurer before the close of the next succeeding business day after receipt of the money, except that for 1989 and every subsequent year, money received with respect to the Income Tax Act during the period starting with the fifth day prior to the due date for payment of income tax for the year and ending on the tenth day following that due date shall be deposited before the close of the tenth business day after receipt of the money.

          B. Money received or disbursed by the department shall be accounted for by the department as required by law or regulation of the secretary of finance and administration.

          C. Disbursements for tax credits, tax rebates, refunds, the payment of interest, the payment of fees charged by attorneys or collection agencies for collection of accounts as agent for the department, attorney fees and costs awarded by a court or hearing officer, as the result of oil and gas litigation, the payment of credit card service charges on payments of taxes by use of credit cards, distributions and transfers shall be made by the department of finance and administration upon request and certification of their appropriateness by the secretary or the secretary's delegate.           D. There are hereby created in the state treasury the "tax administration suspense fund", the "extraction taxes suspense fund" and the "workers' compensation collections suspense fund" for the purpose of making the disbursements authorized by the Tax Administration Act.

          E. All revenues collected or received by the department pursuant to the provisions of the taxes and tax acts set forth in Subsection A of Section 7-1-2 NMSA 1978 and [through June 30, 2009, federal funds from the temporary assistance for needy families program pursuant to an agreement that the department and the human services department may enter into for the payment of tax refunds, tax rebates and tax credits to low-income families with dependent children otherwise authorized by state and federal law] remittances received by the department from the New Mexico finance authority pursuant to Subsection E of Section 6-21-6.1 NMSA 1978 shall be credited to the tax administration suspense fund and are appropriated for the purpose of making the disbursements authorized in this section or otherwise authorized or required by law to be made from the tax administration suspense fund.

          F. All revenues collected or received by the department pursuant to the taxes or tax acts set forth in Subsection B of Section 7-1-2 NMSA 1978 shall be credited to the extraction taxes suspense fund and are appropriated for the purpose of making the disbursements authorized in this section or otherwise authorized or required by law to be made from the extraction taxes suspense fund.

          G. All revenues collected or received by the department pursuant to the taxes or tax acts set forth in Subsection C of Section 7-1-2 NMSA 1978 may be credited to the tax administration suspense fund, unless otherwise directed by law to be credited to another fund or agency, and are appropriated for the purpose of making disbursements authorized in this section or otherwise authorized or required by law.

          H. All revenues collected or received by the department pursuant to the provisions of Section 52-5-19 NMSA 1978 shall be credited to the workers' compensation collections suspense fund and are appropriated for the purpose of making the disbursements authorized in this section or otherwise authorized or required by law to be made from the workers' compensation collections suspense fund.

          I. Disbursements to cover expenditures of the department shall be made only upon approval of the secretary or the secretary's delegate.

          J. Miscellaneous receipts from charges made by the department to defray expenses pursuant to the provisions of Section 9-11-6.2 NMSA 1978 and similar charges are appropriated to the department for its use.

          K. From the tax administration suspense fund, there may be disbursed each month amounts approved by the secretary or the secretary's delegate necessary to maintain a fund hereby created and to be known as the "income tax suspense fund". The income tax suspense fund shall be used for the payment of income tax refunds."

     SECTION 3. A new section of the Tax Administration Act is enacted to read:

     "[NEW MATERIAL] DISTRIBUTION--REMITTANCES FROM NEW MEXICO FINANCE AUTHORITY TO STATE AGENCIES.--An annual distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made each October 1 to each agency, institution, instrumentality and political subdivision of the state that paid governmental gross receipts tax in the previous fiscal year in an amount equal to each entity's percentage of governmental gross receipts tax paid in the previous fiscal year multiplied by the amount remitted to the department from the New Mexico finance authority for the previous fiscal year pursuant to Subsection E of Section 6-21-6.1 NMSA 1978."

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