HOUSE BILL 563

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

James G. Taylor

AN ACT

RELATING TO TAXATION; IMPOSING AN EXCISE TAX ON LOW-NUTRITION FOODS SOLD BY VENDING MACHINES ON SCHOOL DISTRICT PROPERTY; PROVIDING FOR DISTRIBUTION OF SCHOOL VENDING MACHINE EXCISE TAX REVENUES TO SUPPORT PHYSICAL EDUCATION AND NUTRITION PROGRAMS IN THE PUBLIC SCHOOLS; MAKING AN APPROPRIATION.

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

     Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 5 of this act may be cited as the "School Vending Machine Excise Tax Act".

     Section 2. [NEW MATERIAL] DEFINITIONS.--As used in the School Vending Machine Excise Tax Act:

          A. "candy" means a preparation of sugar, honey or other natural or artificial sweetener in combination with chocolate, fruit, nuts or other ingredients or flavorings in the form of bars, drops or pieces;

          B. "department" means the taxation and revenue department, the secretary of taxation and revenue or an employee of the department exercising authority lawfully delegated to that employee by the secretary;

          C. "gross receipts" means the total amount of money or the value of other consideration received from selling property in New Mexico. In an exchange in which the money or other consideration received does not represent the value of the property or service exchanged, "gross receipts" means the reasonable value of the property or service exchanged;

          D. "minimally nutritious snack" means a package of food that:

                (1) provides less than five percent of the recommended daily allowance per serving of protein, vitamin A, vitamin C, niacin, riboflavin, thiamine, calcium and iron;

                (2) derives more than thirty-five percent of its total calories from fat, excepting nuts or seeds;

                (3) derives more than ten percent of its total calories from saturated fats; or

                (4) is composed of more than twenty percent sugar by weight, other than fresh fruits or berries; and

          E. "non-healthy beverage" means a nonalcoholic flavored beverage, but does not include an unsweetened beverage that contains greater than fifty percent by volume of vegetable or fruit juice or one hundred percent milk, soy, rice or similar milk substitute.

     Section 3. [NEW MATERIAL] SCHOOL VENDING MACHINE EXCISE TAX--RATE AND IMPOSITION.--

          A. An excise tax to be known as the "school vending machine excise tax" is imposed on the owner of a vending machine that dispenses for sale candy, minimally nutritious snacks or non-healthy beverages and that is located in a public school in the state.

          B. The excise tax shall be equal to ten percent of the gross receipts attributable to the sale of the candy, minimally nutritious snacks and non-healthy beverages from vending machines located in a public school in the state.

     Section 4. [NEW MATERIAL] DATE PAYMENT DUE.--The school vending machine excise tax shall be paid on or before the twenty-fifth day of the month following the month in which the taxable event occurs.

     Section 5. [NEW MATERIAL] INTERPRETATION OF ACT--ADMINISTRATION AND ENFORCEMENT OF TAX.--

          A. The department shall administer the provisions of the School Vending Machine Excise Tax Act and administer and enforce the collection of the school vending machine excise tax.

          B. The Tax Administration Act applies to the administration and enforcement of the tax.

     Section 6. A new section of the Tax Administration Act is enacted to read:

     "[NEW MATERIAL] DISTRIBUTION--SCHOOL VENDING MACHINE EXCISE TAX.--Pursuant to the provisions of Section 7-1-6.1 NMSA 1978, the net receipts attributable to the school vending machine excise tax shall be distributed to the public education department for support of physical education and nutrition programs in the public schools of the state."

     Section 7. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2004.

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