0001| SENATE BILL 947 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| PETE CAMPOS | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO TAXATION; AMENDING THE NMSA 1978 TO MODIFY THE | 0012| SUPPLEMENTAL MUNICIPAL GROSS RECEIPTS TAX ACT TO EXTEND ITS | 0013| OPERATION AND PERMIT REFUNDING BONDS. | 0014| | 0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0016| Section 1. Section 7-19-11 NMSA 1978 (being Laws 1979, | 0017| Chapter 397, Section 2, as amended) is amended to read: | 0018| "7-19-11. DEFINITIONS.--As used in the Supplemental | 0019| Municipal Gross Receipts Tax Act: | 0020| A. "department" or "division" means the taxation | 0021| and revenue department, the secretary of taxation and revenue | 0022| or any employee of the department exercising authority lawfully | 0023| delegated to that employee by the secretary; | 0024| B. "governing body" means the city council or city | 0025| commission of a municipality; | 0001| C. "municipality" means any incorporated city, town | 0002| or village having a population under [twelve] thirteen | 0003| thousand as determined by the last official United States | 0004| census and being located within a class [C] B county; | 0005| D. "person" means an individual or any other legal | 0006| entity; | 0007| E. "refunding bonds" means bonds issued pursuant | 0008| to the provisions of the Supplemental Municipal Gross Receipts | 0009| Tax Act to refund supplemental municipal gross receipts tax | 0010| bonds issued pursuant to the provisions of that act; | 0011| [E.] F. "state gross receipts tax" means the | 0012| gross receipts tax imposed under the Gross Receipts and | 0013| Compensating Tax Act; and | 0014| [F.] G. "supplemental municipal gross receipts | 0015| tax" means the tax authorized to be imposed under the | 0016| Supplemental Municipal Gross Receipts Tax Act." | 0017| Section 2. Section 7-19-12 NMSA 1978 (being Laws 1979, | 0018| Chapter 397, Section 3, as amended by Laws 1986, Chapter 6, | 0019| Section 1 and also by Laws 1986, Chapter 20, Section 80) is | 0020| amended to read: | 0021| "7-19-12. AUTHORIZATION TO IMPOSE SUPPLEMENTAL MUNICIPAL | 0022| GROSS RECEIPTS TAX--AUTHORIZATION FOR ISSUANCE OF SUPPLEMENTAL | 0023| MUNICIPAL GROSS RECEIPTS BONDS--ELECTION REQUIRED | 0024| [--AUTHORIZATION REMOVED].-- | 0025| A. The majority of the members elected to the | 0001| governing body of a municipality may enact an ordinance | 0002| imposing an excise tax on any person engaging in business in | 0003| the municipality for the privilege of engaging in business in | 0004| the municipality. This tax is to be referred to as the | 0005| "supplemental municipal gross receipts tax". The rate of the | 0006| tax shall not exceed one percent of the gross receipts of the | 0007| person engaging in business and shall be imposed in one-fourth | 0008| percent increments if less than one percent. | 0009| B. The governing body of a municipality enacting an | 0010| ordinance imposing the tax authorized in Subsection A of this | 0011| section shall submit the question of imposing such tax and the | 0012| question of the issuance of supplemental municipal gross | 0013| receipts bonds in an amount not to exceed nine million dollars | 0014| ($9,000,000), for which the revenue from the supplemental | 0015| municipal gross receipts tax is dedicated, to the qualified | 0016| [registered] electors of the municipality at a regular or | 0017| special election. | 0018| C. The questions referred to in Subsection B of | 0019| this section shall be submitted to a vote of the qualified | 0020| [and registered] electors of the municipality as two separate | 0021| ballot questions which shall be substantially in the following | 0022| form: | 0023| (1) "Shall the municipality be authorized to | 0024| issue supplemental municipal gross receipts bonds in an amount | 0025| of not exceeding ____________________ dollars for the purpose | 0001| of constructing and equipping and otherwise acquiring a | 0002| municipal water supply system? | 0003| For __________ Against __________"; and | 0004| (2) "Shall the municipality impose an excise | 0005| tax for the privilege of engaging in business in the | 0006| municipality which shall be known as the "supplemental | 0007| municipal gross receipts tax" and which shall be imposed at a | 0008| rate of __________ percent of the gross receipts of the person | 0009| engaging in business, the proceeds of which are dedicated to | 0010| the payment of supplemental municipal gross receipts bonds? | 0011| For __________ Against __________". | 0012| D. Only those voters who are registered electors | 0013| who reside within the municipality shall be permitted to vote | 0014| on these two questions. The procedures for conducting the | 0015| election shall be substantially the same as the applicable | 0016| provisions in Sections 3-30-1, 3-30-6 and 3-30-7 NMSA 1978 | 0017| relating to municipal debt. | 0018| E. If at an election called pursuant to this | 0019| section a majority of the voters voting on each of the two | 0020| questions vote in the affirmative on each such question, then | 0021| the ordinance imposing the supplemental municipal gross | 0022| receipts tax shall be approved. If at such election a majority | 0023| of the voters voting on such questions fail to approve any of | 0024| the questions, then the ordinance imposing the tax shall be | 0025| disapproved and the questions required to be submitted by | 0001| Subsection B of this section shall not be submitted to the | 0002| voters for a period of one year from the date of the election. | 0003| F. Any ordinance enacted under the provisions of this | 0004| section shall include an effective date of either July 1 or | 0005| January 1, whichever date occurs first after the expiration of | 0006| at least five months from the date of the election. A | 0007| certified copy of any ordinance imposing a supplemental | 0008| municipal gross receipts tax shall be mailed to the division | 0009| within five days after the ordinance is adopted by the approval | 0010| by the electorate. Any ordinance repealing the imposition of a | 0011| tax under the provisions of the Supplemental Municipal Gross | 0012| Receipts Tax Act shall become effective on either July 1 or | 0013| January 1, after the expiration of at least five months from | 0014| the date the ordinance is repealed by the governing body. | 0015| G. [No ordinance pursuant to the provisions of the | 0016| Supplemental Municipal Gross Receipts Tax Act shall be | 0017| effective unless it is enacted and the required election is | 0018| held prior to February 1, 1986.] Nothing in this section is | 0019| intended to or does alter the effectiveness or validity of any | 0020| actions taken in accordance with Subsection G of Section 80 of | 0021| Chapter 20 of Laws 1986." | 0022| Section 3. Section 7-19-18 NMSA 1978 (being Laws 1979, | 0023| Chapter 397, Section 9, as amended) is amended to read: | 0024| "7-19-18. SUPPLEMENTAL MUNICIPAL GROSS RECEIPTS TAX--USE | 0025| OF PROCEEDS--RESTRICTION.-- | 0001| A. The proceeds from the supplemental municipal | 0002| gross receipts tax shall be deposited in a special improvement | 0003| account of the municipality and shall be used only for: | 0004| (1) the payment of the principal of, interest | 0005| on, any prior redemption premiums due in connection with and | 0006| other expenses related to the supplemental municipal gross | 0007| receipts bonds issued pursuant to the Supplemental Municipal | 0008| Gross Receipts Tax Act; | 0009| (2) the funding of any reserves and other | 0010| accounts in connection with such bonds; | 0011| (3) refunding bonds; and | 0012| (4) to the extent not needed for [such] | 0013| those purposes, the improvement of the municipality's water | 0014| system. B. When [the] any issue of supple- | 0015| | 0016| mental municipal gross receipts bonds [are] is fully paid, | 0017| [any] the supplemental municipal gross receipts tax shall | 0018| cease to be imposed for that issue, but may continue to be | 0019| imposed for bonds enacted and approved pursuant to Section 7- | 0020| 19-12 NMSA 1978 and thereafter issued, or for refunding bonds | 0021| issued pursuant to Section 4 of this 1997 act. Any money | 0022| remaining in a special improvement account after the | 0023| obligations for [the] supplemental municipal gross receipts | 0024| bonds and refunding bonds, are fully paid may be transferred | 0025| to any other fund of the municipality." | 0001| Section 4. A new section of Chapter 7, Article 19 NMSA | 0002| 1978 is enacted to read: | 0003| "[NEW MATERIAL] REFUNDING BONDS--AUTHORIZATION.-- | 0004| A. Any municipality may issue refunding bonds for the | 0005| purpose of refinancing, paying and discharging all or any part | 0006| of outstanding supplemental municipal gross receipts tax bonds | 0007| of any one or more or all outstanding issues: | 0008| (1) for the acceleration, deceleration or other | 0009| modification of the payment of such obligations, including | 0010| without limitation any capitalization of any interest thereon | 0011| in arrears or about to become due for any period not exceeding | 0012| one year from the date of the refunding bonds; | 0013| (2) for the purpose of reducing interest costs | 0014| or affecting other economies; | 0015| (3) for the purpose of modifying or eliminating | 0016| restrictive contractual limitations pertaining to the issuance | 0017| of additional bonds, otherwise concerning the outstanding bonds | 0018| or to any facilities relating thereto; or | 0019| (4) for any combination of such purposes. | 0020| B. The municipality may pledge irrevocably for the | 0021| payment of interest and principal on refunding bonds the | 0022| appropriate pledged revenues, which may be pledged to an | 0023| original issue of bonds as provided in the Supplemental | 0024| Municipal Gross Receipts Tax Act. Nothing in this section | 0025| shall permit the pledge of the gross receipts tax revenue to | 0001| the payment of bonds that refund bonds issued under any other | 0002| provision of law. | 0003| C. Refunding bonds may be issued separately or issued | 0004| in combination in one series or more. | 0005| D. Refunding bonds issued pursuant to the | 0006| Supplemental Municipal Gross Receipts Tax Act shall be | 0007| authorized by ordinance. Any bonds that are refunded under the | 0008| provisions of this section shall be paid at maturity or on any | 0009| permitted prior redemption date in the amounts, at the time and | 0010| places and, if called prior to maturity, in accordance with any | 0011| applicable notice provisions, all as provided in the | 0012| proceedings authorizing the issuance of the refunded bonds, or | 0013| otherwise appertaining thereto, except for any such bond that | 0014| is voluntarily surrendered for exchange or payment by the | 0015| holder or owner. | 0016| E. Provision shall be made for paying the bonds | 0017| refunded at the time or places provided in Subsection D of this | 0018| section. The principal amount of the refunding bonds may | 0019| exceed, be less than or be the same as the principal amount of | 0020| the bonds being refunded so long as provision is duly and | 0021| sufficiently made for the payment of the refunded bonds. | 0022| F. The proceeds of refunding bonds, including any | 0023| accrued interest and premium appertaining to the sale of | 0024| refunding bonds, shall either be immediately applied to the | 0025| retirement of the bonds being refunded or be placed in escrow | 0001| in a commercial bank or trust company that possesses and is | 0002| exercising trust powers and that is a member of the federal | 0003| deposit insurance corporation, to be applied to the payment of | 0004| the principal of, interest on and any prior redemption premium | 0005| due in connection with the bonds being refunded; provided that | 0006| such refunding bond proceeds, including any accrued interest | 0007| and any premium appertaining to a sale of refunding bonds, may | 0008| be applied to the establishment and maintenance of a reserve | 0009| fund and to the payment of expenses incidental to the refunding | 0010| and the issuance of the refunding bonds, the interest on the | 0011| refunding bonds and the principal of the refunding bonds or | 0012| both interest and principal as the municipality may determine. | 0013| Nothing in this section requires the establishment of an escrow | 0014| if the refunded bonds become due and payable within one year | 0015| from the date of the refunding bonds and if the amounts | 0016| necessary to retire the refunded bonds within that time are | 0017| deposited with the paying agent for the refunded bonds. Any | 0018| such escrow shall not necessarily be limited to proceeds of | 0019| refunding bonds but may include other money available for its | 0020| escrow purpose. Any proceeds in escrow pending such use may be | 0021| invested or reinvested in bills, certificates of indebtedness, | 0022| notes or bonds that are direct obligations of or the principal | 0023| and interest of which obligations are unconditionally | 0024| guaranteed by the United States or in certificates of deposit | 0025| of banks that are members of the federal deposit insurance | 0001| corporation, the par value of which certificates of deposit is | 0002| collateralized by a pledge of obligations of or the payment of | 0003| which is unconditionally guaranteed by the United States, the | 0004| par value of which obligations is least seventy-five percent of | 0005| the par value of the certificates of deposit. Such proceeds | 0006| and investments in escrow together with any interest or other | 0007| income to be derived from any such investment shall be in an | 0008| amount at all times sufficient as to principal, interest, any | 0009| prior redemption premium due and any charges of the escrow | 0010| agent payable therefrom to pay the bonds being refunded as they | 0011| become due at their respective maturities or due at any | 0012| designated prior redemption date in connection with which the | 0013| municipality shall exercise a prior redemption option. Any | 0014| purchaser of any refunding bond issued pursuant to the | 0015| provisions of the Supplemental Municipal Gross Receipts Tax Act | 0016| is in no manner responsible for the application of the proceeds | 0017| thereof by the municipality or any of its officers, agents or | 0018| employees. | 0019| G. Refunding bonds may be sold at a public or | 0020| negotiated sale and may bear such additional terms and | 0021| provisions as may be determined by the municipality subject to | 0022| limitations in the Supplemental Municipal Gross Receipts Tax | 0023| Act. The terms, provisions and authorization of the refunding | 0024| bonds are not subject to the provisions of any other statute, | 0025| provided that the Public Securities Limitation of Action Act | 0001| shall be fully applicable to the issuance of refunding bonds. | 0002| H. The municipality shall receive from the department | 0003| of finance and administration written approval of any refunding | 0004| bonds issued pursuant to the provisions of this section." | 0005|  | 0006| | 0007| FORTY-THIRD LEGISLATURE | 0008| FIRST SESSION, 1997 | 0009| | 0010| | 0011| March 5, 1997 | 0012| | 0013| Mr. President: | 0014| | 0015| Your WAYS AND MEANS COMMITTEE, to whom has been | 0016| referred | 0017| | 0018| SENATE BILL 947 | 0019| | 0020| has had it under consideration and reports same with | 0021| recommendation that it DO PASS, and thence referred to the | 0022| FINANCE COMMITTEE. | 0023| | 0024| Respectfully submitted, | 0025| | 0001| | 0002| | 0003| | 0004| __________________________________ | 0005| Carlos R. Cisneros, Chairman | 0006| | 0007| | 0008| | 0009| Adopted_______________________ Not | 0010| Adopted_______________________ | 0011| (Chief Clerk) (Chief Clerk) | 0012| | 0013| | 0014| Date ________________________ | 0015| | 0016| | 0017| The roll call vote was 6 For 0 Against | 0018| Yes: 6 | 0019| No: 0 | 0020| Excused: Duran, McSorley, Nava | 0021| Absent: None | 0022| | 0023| | 0024| S0947WM1 | 0025| | 0001| | 0002| | 0003| FORTY-THIRD LEGISLATURE SB 947/a | 0004| FIRST SESSION, 1997 | 0005| | 0006| | 0007| March 8, 1997 | 0008| | 0009| Mr. President: | 0010| | 0011| Your FINANCE COMMITTEE, to whom has been referred | 0012| | 0013| SENATE BILL 947 | 0014| | 0015| has had it under consideration and reports same with | 0016| recommendation that it DO PASS, amended as follows: | 0017| | 0018| 1. On page 2, line 2, after "having" strike the | 0019| remainder of the line and all of lines 3 and 4 and insert in lieu | 0020| thereof "previously qualified to impose and did impose the tax | 0021| pursuant to the provisions of the Supplemental Municipal Gross | 0022| Receipts Tax Act in effect prior to this 1997 act;". | 0023| | 0024| 2. On page 8, line 15, strike "may" and insert in lieu | 0025| thereof "shall not". | 0001| | 0002| 3. On page 8, line 16, after the comma insert "but | 0003| may". | 0004| | 0005| | 0006| | 0007| | 0008| Respectfully submitted, | 0009| | 0010| | 0011| | 0012| | 0013| __________________________________ | 0014| Ben D. Altamirano, Chairman | 0015| | 0016| | 0017| | 0018| | 0019| | 0020| | 0021| | 0022| | 0023| | 0024| | 0025| | 0001| | 0002| | 0003| | 0004| | 0005| | 0006| Adopted_______________________ Not | 0007| Adopted_______________________ | 0008| (Chief Clerk) (Chief Clerk) | 0009| | 0010| | 0011| Date ________________________ | 0012| | 0013| | 0014| The roll call vote was 6 For 0 Against | 0015| Yes: 6 | 0016| No: None | 0017| Excused: Carraro, Ingle, McKibben, Romero, Smith | 0018| Absent: None | 0019| | 0020| | 0021| S0947FC1 .118211.2 | 0022| | 0023| | 0024| | 0025| FORTY-THIRD LEGISLATURE SB 947/a | 0001| FIRST SESSION, 1997 | 0002| | 0003| | 0004| March 8, 1997 | 0005| | 0006| Mr. President: | 0007| | 0008| Your FINANCE COMMITTEE, to whom has been referred | 0009| | 0010| SENATE BILL 947 | 0011| | 0012| has had it under consideration and reports same with | 0013| recommendation that it DO PASS, amended as follows: | 0014| | 0015| 1. On page 2, line 2, after "having" strike the | 0016| remainder of the line and all of lines 3 and 4 and insert in lieu | 0017| thereof "previously qualified to impose and did impose the tax | 0018| pursuant to the provisions of the Supplemental Municipal Gross | 0019| Receipts Tax Act in effect prior to this 1997 act;". | 0020| | 0021| 2. On page 8, line 15, strike "may" and insert in lieu | 0022| thereof "shall not". | 0023| | 0024| 3. On page 8, line 16, after the comma insert "but | 0025| may". | 0001| | 0002| | 0003| | 0004| | 0005| Respectfully submitted, | 0006| | 0007| | 0008| | 0009| | 0010| __________________________________ | 0011| Ben D. Altamirano, Chairman | 0012| | 0013| | 0014| | 0015| | 0016| | 0017| | 0018| | 0019| | 0020| | 0021| | 0022| | 0023| | 0024| | 0025| | 0001| | 0002| | 0003| Adopted_______________________ Not | 0004| Adopted_______________________ | 0005| (Chief Clerk) (Chief Clerk) | 0006| | 0007| | 0008| Date ________________________ | 0009| | 0010| | 0011| The roll call vote was 6 For 0 Against | 0012| Yes: 6 | 0013| No: None | 0014| Excused: Carraro, Ingle, McKibben, Romero, Smith | 0015| Absent: None | 0016| | 0017| | 0018| S0947FC1 .118211.2 | 0019| | 0020| State of New Mexico | 0021| House of Representatives | 0022| | 0023| FORTY-THIRD LEGISLATURE | 0024| FIRST SESSION, 1997 | 0025| | 0001| | 0002| March 17, 1997 | 0003| | 0004| | 0005| Mr. Speaker: | 0006| | 0007| Your TAXATION AND REVENUE COMMITTEE, to whom has | 0008| been referred | 0009| | 0010| SENATE BILL 947, as amended | 0011| | 0012| has had it under consideration and reports same with | 0013| recommendation that it DO PASS, and thence referred to the | 0014| APPROPRIATIONS AND FINANCE COMMITTEE. | 0015| | 0016| Respectfully submitted, | 0017| | 0018| | 0019| | 0020| | 0021| Jerry W. Sandel, Chairman | 0022| | 0023| | 0024| Adopted Not Adopted | 0025| | 0001| (Chief Clerk) (Chief Clerk) | 0002| | 0003| Date | 0004| | 0005| The roll call vote was 12 For 0 Against | 0006| Yes: 12 | 0007| Excused: Lovejoy | 0008| Absent: None | 0009| | 0010| | 0011| G:\BILLTEXT\BILLW_97\S0947 |