45th legislature - STATE OF NEW MEXICO - second session, 2002

RELATING TO TAXATION; PROVIDING AN OFFSET AGAINST THE GAMING TAX FOR CERTAIN GAMING OPERATOR LICENSEES THAT MAKE INFRASTRUCTURE IMPROVEMENTS DESIGNED TO FACILITATE ACCESS FOR PATRONS.

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

Section 1. Section 60-2E-47 NMSA 1978 (being Laws 1997, Chapter 190, Section 49, as amended by Laws 2001, Chapter 256, Section 1 and by Laws 2001, Chapter 262, Section 3) is amended to read:

"60-2E-47. GAMING TAX--IMPOSITION--ADMINISTRATION.--

A. An excise tax is imposed on the privilege of engaging in gaming activities in the state. This tax shall be known as the "gaming tax".

B. The gaming tax is an amount equal to ten percent of the gross receipts of manufacturer licensees from the sale, lease or other transfer of gaming devices in or into the state, except receipts of a manufacturer from the sale, lease or other transfer to a licensed distributor for subsequent sale or lease may be excluded from gross receipts; ten percent of the gross receipts of distributor licensees from the sale, lease or other transfer of gaming devices in or into the state; ten percent of the net take of a gaming operator licensee that is a nonprofit organization; and, except as provided in Subsection C of this section, twenty-five percent of the net take of every other gaming operator licensee. For the purposes of this section, "gross receipts" means the total amount of money or the value of other consideration received from selling, leasing or otherwise transferring gaming devices.

C. Up to twenty-five percent of the gaming tax otherwise due for any month from a gaming operator licensee that is not a nonprofit organization and that is located in a class A county with a population, as determined in the most recent federal decennial census, of greater than one hundred fifty thousand but less than four hundred thousand may be offset by the amount expended, after July 1, 2002 and before July 1, 2007, by the licensee for road improvements designed to facilitate access to the licensee's premises for gaming patrons; provided that the total amount of gaming taxes offset pursuant to this subsection shall not exceed one million dollars ($1,000,000) during any fiscal year.

[C.] D. The gaming tax imposed on a licensee is in lieu of all state and local gross receipts taxes on that portion of the licensee's gross receipts attributable to gaming activities.

[D.] E. The gaming tax is to be paid on or before the fifteenth day of the month following the month in which the taxable event occurs. The gaming tax shall be administered and collected by the taxation and revenue department in cooperation with the board. The provisions of the Tax Administration Act apply to the collection and administration of the tax.

[E.] F. In addition to the gaming tax, a gaming operator licensee that is a racetrack shall pay twenty percent of its net take to purses to be distributed in accordance with rules adopted by the state racing commission. An amount not to exceed twenty percent of the interest earned on the balance of any fund consisting of money for purses distributed by racetrack gaming operator licensees pursuant to this subsection may be expended for the costs of administering the distributions. A racetrack gaming operator licensee shall spend no less than one-fourth of one percent of the net take of its gaming machines to fund or support programs for the treatment and assistance of compulsive gamblers.

[F.] G. A nonprofit gaming operator licensee shall distribute at least sixty percent of the balance of its net take, after payment of the gaming tax and any income taxes,

for charitable or educational purposes."

Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2002.