0001| SENATE FINANCE COMMITTEE SUBSTITUTE FOR | 0002| SENATE BILL 1129 | 0003| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO THE TAXATION AND REVENUE DEPARTMENT; AUTHORIZING | 0013| THE WITHHOLDING OF AN ADMINISTRATIVE FEE ON CERTAIN | 0014| DISTRIBUTIONS; PROVIDING FOR THE DISTRIBUTION OF THE | 0015| ADMINISTRATIVE FEE WITHHELD; AUTHORIZING THE NEW MEXICO FINANCE | 0016| AUTHORITY TO ISSUE REVENUE BONDS; AMENDING AND ENACTING | 0017| SECTIONS OF THE NMSA 1978; MAKING APPROPRIATIONS; DECLARING AN | 0018| EMERGENCY. | 0019| | 0020| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0021| Section 1. A new section of the Tax Administration Act is | 0022| enacted to read: | 0023| "[NEW MATERIAL] ADMINISTRATIVE FEE IMPOSED-- | 0024| APPROPRIATION.-- | 0025| A. The taxation and revenue department is directed | 0001| to withhold an administrative fee of three percent of the net | 0002| amount to be distributed under the provisions of: | 0003| (1) Section 7-1-6.32 NMSA 1978; | 0004| (2) Section 66-12-20 NMSA 1978; and | 0005| (3) Section 74-1-13 NMSA 1978. | 0006| B. The administrative fee to be withheld pursuant | 0007| to Subsection A of this section shall be withheld on | 0008| distributions made on or after July 1, 1997 and shall continue | 0009| until the earlier of December 31, 2005 or the date on which the | 0010| New Mexico finance authority certifies to the taxation and | 0011| revenue department that all obligations for bonds issued | 0012| pursuant to Section 12 of this 1997 act have been fully | 0013| discharged and directs the department to cease distributing | 0014| money to the authority pursuant to this section. | 0015| C. The taxation and revenue department is directed | 0016| to withhold an administrative fee of five percent of the net | 0017| amount to be distributed under the provisions of: | 0018| (1) Section 7-1-6.12 NMSA 1978; and | 0019| (2) Section 7-1-6.13 NMSA 1978. | 0020| D. The administrative fee to be withheld under | 0021| Subsection C of this section shall be withheld on distributions | 0022| made on or after July 1, 1997 and shall continue until the | 0023| earlier of July 1, 2000 or the date on which the New Mexico | 0024| finance authority certifies to the taxation and revenue | 0025| department that all obligations for bonds issued pursuant to | 0001| Section 12 of this 1997 act have been fully discharged and | 0002| directs the department to cease distributing money to the | 0003| authority pursuant to this section. | 0004| E. The taxation and revenue department is directed to | 0005| withhold an administrative fee of three percent of the net amount | 0006| to be distributed under the provisions of: | 0007| (1) Section 7-1-6.12 NMSA 1978; and | 0008| (2) Section 7-1-6.13 NMSA 1978. | 0009| F. The administrative fee to be withheld under | 0010| Subsection E of this section shall be withheld on distributions | 0011| made on or after July 1, 2000 and shall continue until the earlier | 0012| of December 31, 2005 or the date on which the New Mexico finance | 0013| authority certifies to the taxation and revenue department that | 0014| all obligations for bonds issued pursuant to Section 12 of this | 0015| 1997 act have been fully discharged and directs the department to | 0016| cease distributing money to the authority pursuant to this | 0017| section. After the department has been directed by the authority | 0018| to cease distributing money to the authority pursuant to this | 0019| section, the administrative fee shall be remitted to the state | 0020| treasurer for deposit in the state general fund each month. | 0021| G. The administrative fee shall be distributed monthly | 0022| to the New Mexico finance authority to be pledged irrevocably for | 0023| the payment of principal, interest and any expenses or obligations | 0024| related to the bonds issued by the authority to finance the | 0025| taxation and revenue information management systems project." | 0001| Section 2. Section 7-1-6.12 NMSA 1978 (being Laws 1983, | 0002| Chapter 211, Section 17, as amended) is amended to read: | 0003| "7-1-6.12. TRANSFER--REVENUES FROM MUNICIPAL LOCAL OPTION | 0004| GROSS RECEIPTS TAXES.--A transfer pursuant to Section 7-1-6.1 NMSA | 0005| 1978 shall be made to each municipality for which the department | 0006| is collecting a local option gross receipts tax imposed by that | 0007| municipality in an amount, subject to any increase or decrease | 0008| made pursuant to Section 7-1-6.15 NMSA 1978, equal to the net | 0009| receipts attributable to the local option gross receipts tax | 0010| imposed by that municipality, less any [deduction for | 0011| administrative cost determined and made by the department pursuant | 0012| to the provisions of the act authorizing imposition by that | 0013| municipality of the local option gross receipts tax] | 0014| administrative fee withheld pursuant to Section 1 of this 1997 | 0015| act." | 0016| Section 3. Section 7-1-6.13 NMSA 1978 (being Laws 1983, | 0017| Chapter 211, Section 18, as amended) is amended to read: | 0018| "7-1-6.13. TRANSFER--REVENUES FROM COUNTY LOCAL OPTION | 0019| GROSS RECEIPTS TAXES.--A transfer pursuant to Section 7-1-6.1 NMSA | 0020| 1978 shall be made to each county for which the department is | 0021| collecting a local option gross receipts tax imposed by that | 0022| county in an amount, subject to any increase or decrease made | 0023| pursuant to Section 7-1-6.15 NMSA 1978, equal to the net receipts | 0024| attributable to the local option gross receipts tax imposed by | 0025| that county, less any [deduction for administrative cost | 0001| determined and made by the department pursuant to the provisions | 0002| of the act authorizing imposition by that county of the local | 0003| option gross receipts tax] administrative fee withheld pursuant to | 0004| Section 1 of this 1997 act." | 0005| Section 4. Section 7-1-6.32 NMSA 1978 (being Laws 1990, | 0006| Chapter 99, Section 44) is amended to read: | 0007| "7-1-6.32. DISTRIBUTION--SOLID WASTE ASSESSMENT FEE.--A | 0008| distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made | 0009| to the solid waste facility grant fund of the net receipts | 0010| attributable to the solid waste assessment fee authorized under | 0011| the Solid Waste Act less any administrative fee withheld pursuant | 0012| to Section 1 of this 1997 act." | 0013| Section 5. Section 7-2C-12 NMSA 1978 (being Laws 1985, | 0014| Chapter 106, Section 12, as amended) is amended to read: | 0015| "7-2C-12. ADMINISTRATIVE COSTS--CHARGES APPROPRIATED TO | 0016| DEPARTMENT.-- | 0017| A. The department [may] shall charge claimant agencies | 0018| [for the costs incurred by the department in setting off] an | 0019| administrative fee of three percent of the debts for the claimant | 0020| agencies pursuant to the Tax Refund Intercept Program Act. [The | 0021| department shall determine those costs, and the determination of | 0022| the department shall be conclusive. Claimant agencies shall pay | 0023| to the department any charges made, and these payments are | 0024| appropriated to the department for use in administering the Tax | 0025| Refund Intercept Program Act.] | 0001| B. The administrative fee authorized pursuant to | 0002| Subsection A of this section shall be withheld on all debts set | 0003| off and collected by the department on or after July 1, 1997 and | 0004| shall be distributed monthly to the New Mexico finance authority | 0005| to be pledged irrevocably for the payment of the principal, | 0006| interest and expenses or other obligations related to the bonds | 0007| for the taxation and revenue information management systems | 0008| project. That distribution shall continue until the earlier of | 0009| December 31, 2005 or the date on which the New Mexico finance | 0010| authority certifies to the department that all obligations for | 0011| bonds issued pursuant to Section 12 of this 1997 act have been | 0012| fully discharged or provision has been made for their discharge | 0013| and directs the department to cease distributing the money from | 0014| the fee pursuant to Subsection A of this section to the authority. | 0015| Thereafter, the administrative fees are appropriated to the | 0016| department for use in administering the Tax Refund Intercept | 0017| Program Act." | 0018| Section 6. Section 7-19-15 NMSA 1978 (being Laws 1979, | 0019| Chapter 397, Section 6, as amended) is amended to read: | 0020| "7-19-15. COLLECTION BY [DIVISION] DEPARTMENT--TRANSFER OF | 0021| PROCEEDS--DEDUCTIONS.-- | 0022| A. The [division] department shall collect the | 0023| supplemental municipal gross receipts tax in the same manner and | 0024| at the same time it collects the state gross receipts tax. | 0025| B. The [division may deduct an amount not to exceed | 0001| three percent of the supplemental municipal gross receipts tax | 0002| collected as a charge for the administrative costs of collection, | 0003| which amount shall be remitted to the state treasurer for deposit | 0004| in the state general fund each month] department shall withhold an | 0005| administrative fee pursuant to Section 1 of this 1997 act. The | 0006| [division] department shall transfer to each municipality for | 0007| which it is collecting a supplemental municipal gross receipts tax | 0008| the amount of the tax collected less [any deduction for] the | 0009| administrative [cost] fee withheld and less any disbursements for | 0010| tax credits, refunds and the payment of interest applicable to the | 0011| supplemental municipal gross receipts tax. Transfer of the tax to | 0012| a municipality shall be made within the month following the month | 0013| in which the tax is collected." | 0014| Section 7. Section 7-19D-7 NMSA 1978 (being Laws 1993, | 0015| Chapter 346, Section 7) is amended to read: | 0016| "7-19D-7. COLLECTION BY DEPARTMENT--TRANSFER OF | 0017| PROCEEDS--DEDUCTIONS.-- | 0018| A. The department shall collect each tax imposed | 0019| [under] pursuant to the provisions of the Municipal Local Option | 0020| Gross Receipts Taxes Act in the same manner and at the same time | 0021| it collects the state gross receipts tax. | 0022| B. Except as provided in Subsection C of this section, | 0023| the department [may deduct an amount not to exceed three percent | 0024| of each tax collected under the provisions of the Municipal Local | 0025| Option Gross Receipts Taxes Act as a charge for the administrative | 0001| costs of collection, which amount shall be remitted to the state | 0002| treasurer for deposit in the state general fund each month] shall | 0003| withhold an administrative fee pursuant to Section 1 of this 1997 | 0004| act. The department shall transfer to each municipality for which | 0005| it is collecting a tax [under] pursuant to the provisions of the | 0006| Municipal Local Option Gross Receipts Taxes Act the amount of each | 0007| tax collected for that municipality, less [any disbursement for | 0008| administrative charges made pursuant to this section] the | 0009| administrative fee withheld and less any disbursements for tax | 0010| credits, refunds and the payment of interest applicable to the | 0011| tax. The transfer to the municipality shall be made within the | 0012| month following the month in which the tax is collected. | 0013| C. With respect to the municipal gross receipts tax | 0014| imposed by a municipality pursuant to Section 7-19D-9 NMSA 1978, | 0015| the department [may deduct as a charge for administration an | 0016| amount equal to three percent of the] shall withhold the | 0017| administrative fee pursuant to Section 1 of this 1997 act only on | 0018| that portion of the municipal gross receipts tax arising from a | 0019| municipal gross receipts tax rate in excess of one-half of one | 0020| percent." | 0021| Section 8. Section 7-20C-6 NMSA 1978 (being Laws 1991, | 0022| Chapter 176, Section 6) is amended to read: | 0023| "7-20C-6. COLLECTION BY DEPARTMENT--TRANSFER OF PROCEEDS-- | 0024| DEDUCTIONS.-- | 0025| A. The department shall collect the local hospital | 0001| gross receipts tax in the same manner and at the same time it | 0002| collects the state gross receipts tax. | 0003| B. The department [may deduct an amount not to exceed | 0004| three percent of the local hospital gross receipts tax collected | 0005| as a charge for the administrative costs of collection, which | 0006| amount shall be remitted to the state treasurer for deposit in the | 0007| state general fund each month] shall withhold an administrative | 0008| fee pursuant to Section 1 of this 1997 act. The department shall | 0009| transfer to each county for which it is collecting such tax the | 0010| amount of the tax collected less [any deduction for] the | 0011| administrative [costs] fee withheld and less any disbursements for | 0012| tax credits, refunds and the payment of interest applicable to the | 0013| tax. Transfer of the tax to a county shall be made within the | 0014| month following the month in which the tax is collected." | 0015| Section 9. Section 7-20E-7 NMSA 1978 (being Laws 1993, | 0016| Chapter 354, Section 7) is amended to read: | 0017| "7-20E-7. COLLECTION BY DEPARTMENT--TRANSFER OF | 0018| PROCEEDS--DEDUCTIONS.-- | 0019| A. The department shall collect each tax imposed | 0020| [under] pursuant to the provisions of the County Local Option | 0021| Gross Receipts Taxes Act in the same manner and at the same time | 0022| it collects the state gross receipts tax. | 0023| B. The department [may deduct an amount not to exceed | 0024| three percent of each tax collected under the provisions of the | 0025| County Local Option Gross Receipts Taxes Act as a charge for the | 0001| administrative costs of collection, which amount shall be remitted | 0002| to the state treasurer for deposit in the state general fund each | 0003| month] shall withhold an administrative fee pursuant to Section 1 | 0004| of this 1997 act. The department shall transfer to each county | 0005| for which it is collecting a tax [under] pursuant to the | 0006| provisions of the County Local Option Gross Receipts Taxes Act the | 0007| amount of each tax collected for that county, less [any | 0008| disbursement for the administrative charge provided by this | 0009| section] the administrative fee withheld and less any | 0010| disbursements for tax credits, refunds and the payment of interest | 0011| applicable to the tax. The transfer to the county shall be made | 0012| within the month following the month in which the tax is | 0013| collected." | 0014| Section 10. Section 66-12-20 NMSA 1978 (being Laws 1959, | 0015| Chapter 338, Section 19, as amended) is amended to read: | 0016| "66-12-20. DISPOSITION OF FEES.--The fees collected [under] | 0017| pursuant to the provisions of the Boat Act, less the | 0018| administrative fee withheld pursuant to Section 1 of this 1997 | 0019| act, shall be covered into the state park and recreation fund." | 0020| Section 11. Section 74-1-13 NMSA 1978 (being Laws 1993, | 0021| Chapter 317, Section 2) is amended to read: | 0022| "74-1-13. WATER CONSERVATION FEE--IMPOSITION--DEFINITIONS.- | 0023| - | 0024| A. There is imposed on every person who operates a | 0025| public water supply system a water conservation fee in an amount | 0001| equal to three cents ($.03) per thousand gallons of water produced | 0002| on which the fee imposed by this subsection has not been paid. | 0003| B. The "water conservation fund" is created in the | 0004| state treasury and shall be administered by the department of | 0005| environment. The fund shall consist of water conservation fees | 0006| collected pursuant to this section. Balances in the fund at the | 0007| end of any fiscal year shall not revert to the general fund but | 0008| shall accrue to the credit of the fund. Earnings on the fund | 0009| shall be credited to the fund. | 0010| C. Money in the water conservation fund is | 0011| appropriated to the department of environment for administration | 0012| of a public water supply program to: | 0013| (1) test public water supplies for the | 0014| contaminants required to be tested pursuant to the provisions of | 0015| Section 1412 of the federal Safe Drinking Water Act, [and] as | 0016| finalized through July 1, 1992, and collect chemical compliance | 0017| samples as required by those provisions of the federal act; | 0018| (2) perform vulnerability assessments which will | 0019| be used to assess a public water supply's susceptibility to those | 0020| contaminants; and | 0021| (3) implement new requirements of the Utility | 0022| Operators Certification Act and provide training for all public | 0023| water supply operators. | 0024| D. The taxation and revenue department shall provide | 0025| by regulation for the manner and form of collection of the water | 0001| conservation fee. All water conservation fees collected by the | 0002| taxation and revenue department, less the administrative fee | 0003| withheld pursuant to Section 1 of this 1997 act, shall be | 0004| deposited in the water conservation fund. | 0005| E. The fee imposed by this section shall be | 0006| administered in accordance with the provisions of the Tax | 0007| Administration Act and shall be paid to the taxation and revenue | 0008| department by each person who operates a public water supply | 0009| system in the manner required by the department on or before the | 0010| twenty-fifth day of the month following the month in which the | 0011| water is produced. | 0012| F. Each operator of a public water supply system shall | 0013| register and comply with the provisions of Section 7-1-12 NMSA | 0014| 1978 and furnish such information as may be required by the | 0015| taxation and revenue department. | 0016| G. As used in this section: | 0017| (1) "person" means any individual or legal | 0018| entity and also means, to the extent permitted by law, any | 0019| federal, state or other governmental unit or subdivision or an | 0020| agency, department or instrumentality thereof; and | 0021| (2) "public water supply system" means a system | 0022| that provides piped water to the public for human consumption and | 0023| that has at least fifteen service connections or regularly | 0024| services an average of at least twenty-five individuals at least | 0025| sixty days per year." | 0001| Section 12. NEW MEXICO FINANCE AUTHORITY REVENUE BONDS-- | 0002| PURPOSE--APPROPRIATION.-- | 0003| A. The New Mexico finance authority may issue and sell | 0004| revenue bonds in compliance with the New Mexico Finance Authority | 0005| Act in installments or at one time in a total amount not exceeding | 0006| thirty-three million seven hundred nine thousand eight hundred | 0007| dollars ($33,709,800) for the purpose of financing the taxation | 0008| and revenue information management systems project. | 0009| B. The New Mexico finance authority may issue and sell | 0010| revenue bonds authorized by this section from time to time when | 0011| the secretary of taxation and revenue, with the concurrence of the | 0012| legislative finance committee, certifies the need for issuance of | 0013| the bonds. The net proceeds from the sale of the bonds are | 0014| appropriated to the taxation and revenue department for the | 0015| purpose of financing the taxation and revenue information | 0016| management systems project. | 0017| C. The revenue from administrative fees distributed | 0018| monthly to the New Mexico finance authority shall be pledged | 0019| irrevocably for the payment of the principal, interest and any | 0020| expenses or other obligations related to the bonds. | 0021| D. The administrative fees distributed to the New | 0022| Mexico finance authority shall be deposited in a separate fund or | 0023| account of the authority. Upon payment of all principal, interest | 0024| and any other expenses or obligations related to the bonds, the | 0025| authority shall certify to the taxation and revenue department | 0001| that all obligations for the bonds issued pursuant to this section | 0002| have been fully discharged or provision has been made for their | 0003| discharge and direct the department to cease the distributions to | 0004| the authority of administrative fees pursuant to Section 1 of this | 0005| act. | 0006| E. Any law authorizing the imposition or distribution | 0007| of the administrative fees or that affects the administrative fees | 0008| shall not be amended, repealed or otherwise directly or indirectly | 0009| modified so as to impair any outstanding revenue bonds that may be | 0010| secured by a pledge of the administrative fees, unless the revenue | 0011| bonds have been discharged in full or provision has been made for | 0012| a full discharge. | 0013| F. The New Mexico finance authority is authorized to | 0014| make an interim cash loan from the public project revolving fund | 0015| in an amount not to exceed two million five hundred thousand | 0016| dollars ($2,500,000) prior to issuance of the bonds pursuant to | 0017| this section. | 0018| Section 13. EFFECTIVE DATE.--The effective date of the | 0019| provisions of Sections 1 through 11 of this act is July 1, 1997. | 0020| Section 14. EMERGENCY.--It is necessary for the public | 0021| peace, health and safety that this act take effect immediately. | 0022|  |