2004 Senate Bill text for SB0386

SENATE BILL 386

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

INTRODUCED BY

Manny M. Aragon

AN ACT

RELATING TO WATER; IMPOSING WATER PROTECTION FEES FOR THE DIVERSION OR WITHDRAWAL OF PUBLIC WATERS OF THE STATE; MAKING AN APPROPRIATION.

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

Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 8 of this act may be cited as the "Water Protection Fee Act".

Section 2. [NEW MATERIAL] DEFINITION.--As used in the Water Protection Fee Act, "person" means any individual or legal entity.

Section 3. [NEW MATERIAL] WATER PROTECTION FEES--IMPOSITION.--

A. In order to exercise the right to use the public waters of the state, the following fees are imposed on the following persons who divert or withdraw the public waters of the state:

(1) irrigation districts, conservancy districts, artesian conservancy districts and irrigation districts cooperating with the United States, one dollar fifty cents ($1.50) per acre-foot per year paid annually;

(2) persons diverting water for agricultural uses for which the fees imposed by this subsection have not otherwise been imposed, one dollar fifty cents ($1.50) per acre-foot per year paid annually;

(3) persons diverting water non-consumptively used for electrical generation or mill or industrial purposes, one dollar ($1.00) per cubic foot per second of water non-consumptively used based upon the maximum yearly diversion paid annually;

(4) persons diverting water for commercial, industrial or mining purposes, eighteen dollars ($18.00) per acre-foot per year paid annually;

(5) persons diverting water for a public water supply or for power production purposes, sixteen dollars ($16.00) per acre-foot per year paid annually;

(6) persons storing water in an open reservoir behind a constructed dam, two dollars ($2.00) per acre-foot evaporated per year paid annually;

(7) persons diverting water for livestock purposes, one dollar fifty cents ($1.50) per acre-foot per year paid annually; and

(8) persons owning a domestic well permitted pursuant to Section 72-12-1.1 NMSA 1978 and from which water is diverted, a fixed annual fee of nine dollars ($9.00) per well paid annually.

B. With the exception of domestic wells that are assessed a fixed annual fee, the water protection fee shall be based on the actual diversion or withdrawal of water if measured by a metering system approved by the state engineer; otherwise, fees shall be based on the amount of the permitted, declared or adjudicated water right. Fees for evaporation shall be assessed only for reservoirs greater than one acre in surface area. The method of calculating the amount of evaporation shall be computed by the state engineer using standard engineering methods.

C. The point of measurement of a diversion shall be:

(1) the farm head gate where water is turned into the field for all agricultural surface water diversions;

(2) the well head for all ground water diversions; and

(3) the point where water is first diverted into the treatment or conveyance system for all municipal, industrial, mining, power production or public water supply system diversions.

Section 4. [NEW MATERIAL] PAYMENT OF WATER PROTECTION FEE--EVIDENCE OF WATER RIGHT.--Payment of fees imposed by the Water Protection Fee Act neither confirms nor is evidence of any right to appropriate the public waters of the state.

Section 5. [NEW MATERIAL] DOMESTIC WELL WATER PROTECTION FEE--COLLECTION.--

A. The county assessor shall collect the water protection fee imposed by the Water Protection Fee Act on domestic well owners. The annual fee shall be assessed with the property tax bill for the property on which the domestic well is located. The county assessor shall remit the water protection fee collected to the taxation and revenue department within thirty days of receipt.

B. The state engineer shall provide the county assessor of each county with the addresses of the owners and locations of domestic wells within the county.

Section 6. [NEW MATERIAL] OTHER WATER PROTECTION FEES--COLLECTION--INFORMATION.--

A. The taxation and revenue department shall provide by regulation for the manner and form of collection of the water protection fees imposed by the Water Protection Fee Act.

B. A person diverting the public waters of the state shall supply the taxation and revenue department with any information necessary for collection of fees by the department pursuant to department regulations.

C. The state engineer, interstate stream commission, department of environment and public regulation commission shall provide the taxation and revenue department with the information and records necessary to assess the fees imposed by the Water Protection Fee Act other than the fee imposed on domestic well owners.

Section 7. [NEW MATERIAL] WATER PROTECTION FUND--CREATED.--The "water protection fund" is created in the state treasury and shall be administered by the state engineer in accordance with the provisions of the Water Protection Fee Act. The fund shall consist of fees distributed to the fund pursuant to the Water Protection Fee Act and any other money donated, distributed or appropriated to the fund. Balances in the fund at the end of a fiscal year shall not revert to the general fund. Earnings on balances in the fund shall be credited to the fund.

Section 8. [NEW MATERIAL] WATER PROTECTION FUND--DISPOSITION.--Money in the water protection fund is appropriated to the state engineer to:

A. complete adjudications;

B. conduct hydrologic investigations of the waters of the state;

C. actively manage the waters of the state to protect persons that divert water under the state's prior appropriation system; and

D. preserve, protect and develop the waters of the state.

Section 9. A new section of the Tax Administration Act is enacted to read:

"[NEW MATERIAL] ADMINISTRATIVE FEE IMPOSED.--The department shall withhold an administrative fee of five percent of the receipts collected pursuant to the Water Protection Fee Act."

Section 10. A new section of the Tax Administration Act is enacted to read:

"[NEW MATERIAL] DISTRIBUTION--WATER PROTECTION FEES.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the water protection fund from the receipts attributable to the water protection fees collected pursuant to the Water Protection Fee Act less any administrative fee withheld by the department."

Section 11. Section 7-1-2 NMSA 1978 (being Laws 1965, Chapter 248, Section 2, as amended) is amended to read:

"7-1-2. APPLICABILITY.--The Tax Administration Act applies to and governs:

A. the administration and enforcement of the following taxes or tax acts as they now exist or may hereafter be amended:

(1) Income Tax Act;

(2) Withholding Tax Act;

(3) Venture Capital Investment Act;

(4) Gross Receipts and Compensating Tax Act and any state gross receipts tax;

(5) Liquor Excise Tax Act;

(6) Local Liquor Excise Tax Act;

(7) any municipal local option gross receipts tax;

(8) any county local option gross receipts tax;

(9) Special Fuels Supplier Tax Act;

(10) Gasoline Tax Act;

(11) petroleum products loading fee, which fee shall be considered a tax for the purpose of the Tax Administration Act;

(12) Alternative Fuel Tax Act;

(13) Cigarette Tax Act;

(14) Estate Tax Act;

(15) Railroad Car Company Tax Act;

(16) Investment Credit Act, Capital Equipment Tax Credit Act, rural job tax credit, Laboratory Partnership with Small Business Tax Credit Act and Technology Jobs Tax Credit Act;

(17) Corporate Income and Franchise Tax Act;

(18) Uniform Division of Income for Tax Purposes Act;

(19) Multistate Tax Compact;

(20) Tobacco Products Tax Act; and

(21) the telecommunications relay service surcharge imposed by Section 63-9F-11 NMSA 1978, which surcharge shall be considered a tax for the purposes of the Tax Administration Act;

B. the administration and enforcement of the following taxes, surtaxes, advanced payments or tax acts as they now exist or may hereafter be amended:

(1) Resources Excise Tax Act;

(2) Severance Tax Act;

(3) any severance surtax;

(4) Oil and Gas Severance Tax Act;

(5) Oil and Gas Conservation Tax Act;

(6) Oil and Gas Emergency School Tax Act;

(7) Oil and Gas Ad Valorem Production Tax Act;

(8) Natural Gas Processors Tax Act;

(9) Oil and Gas Production Equipment Ad Valorem Tax Act;

(10) Copper Production Ad Valorem Tax Act;

(11) any advance payment required to be made by any act specified in this subsection, which advance payment shall be considered a tax for the purposes of the Tax Administration Act;

(12) Enhanced Oil Recovery Act;

(13) Natural Gas and Crude Oil Production Incentive Act; and

(14) intergovernmental production tax credit and intergovernmental production equipment tax credit;

C. the administration and enforcement of the following taxes, surcharges, fees or acts as they now exist or may hereafter be amended:

(1) Weight Distance Tax Act;

(2) the workers' compensation fee authorized by Section 52-5-19 NMSA 1978, which fee shall be considered a tax for purposes of the Tax Administration Act;

(3) Uniform Unclaimed Property Act;

(4) 911 emergency surcharge and the network and database surcharge, which surcharges shall be considered taxes for purposes of the Tax Administration Act;

(5) the solid waste assessment fee authorized by the Solid Waste Act, which fee shall be considered a tax for purposes of the Tax Administration Act;

(6) the water conservation fee imposed by Section 74-1-13 NMSA 1978, which fee shall be considered a tax for the purposes of the Tax Administration Act; [and]

(7) the gaming tax imposed pursuant to the Gaming Control Act; and

(8) the water protection fees imposed pursuant to the Water Protection Fee Act, which fees shall be considered a tax for the purposes of the Tax Administration Act; and

D. the administration and enforcement of all other laws, with respect to which the department is charged with responsibilities pursuant to the Tax Administration Act, but only to the extent that the other laws do not conflict with the Tax Administration Act."

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