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

RELATING TO TAXATION; PROVIDING FOR A REFUND OF GOVERNMENTAL GROSS RECEIPTS TAXES PAID BY CERTAIN MUNICIPALITIES.

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

Section 1. A new section of the Tax Administration Act is enacted to read:

"[NEW MATERIAL] GOVERNMENTAL GROSS RECEIPTS TAX--REFUNDS TO MUNICIPALITIES.--

A. All governmental gross receipts tax revenue received or collected by the department from a municipality with a population, as shown by the most recent federal decennial census, of more than three hundred thousand shall be refunded to that municipality. The refunds shall be made no later than the last day of the month following the month in which the revenue was received and, except as provided in this section, the refund procedures of the Tax Administration Act are not a prerequisite for the refund.

B. A refund made pursuant to this section shall, pursuant to Subsection J of Section 7-1-3 NMSA 1978, be deducted when calculating the net receipts attributable to the governmental gross receipts tax for purposes of making distributions pursuant to Section 7-1-6.38 NMSA 1978.

C. The department is directed to withhold an administrative fee of two percent before making a refund pursuant to this section. The fee shall be distributed pursuant to Subsection G of Section 7-1-6.41 NMSA 1978."

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