HOUSE BILL 299

47th legislature - STATE OF NEW MEXICO - second session, 2006

INTRODUCED BY

Brian K. Moore

AN ACT

RELATING TO SMALL CITIES ASSISTANCE; PROVIDING FOR AN INCREASED DISTRIBUTION TO THE SMALL CITIES ASSISTANCE FUND; INCREASING THE MINIMUM AMOUNT AVAILABLE FOR DISTRIBUTION TO MUNICIPALITIES PURSUANT TO THE SMALL CITIES ASSISTANCE ACT; MAKING AN APPROPRIATION.

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

     Section 1. Section 3-37A-2 NMSA 1978 (being Laws 1979, Chapter 284, Section 2, as amended) is amended to read:

     "3-37A-2. DEFINITIONS.--As used in the Small Cities Assistance Act:

          A. "municipality" means an incorporated city, town or village, whether incorporated under general act, special act or special charter, and incorporated counties and H-class counties;

          B. "municipal share" means one and [thirty-five one-hundredths] two hundred twenty-five thousandths percent of the taxable gross receipts as defined in the Gross Receipts and Compensating Tax Act reported annually for each municipality to the taxation and revenue department during a twelve-month period ending June 30;

          C. "total municipal share" means the sum of all municipal shares;

          D. "statewide per capita average" means the quotient of the total municipal share divided by the total population in all municipalities;

          E. "municipal per capita average" means the quotient of the municipal share divided by the municipality's population;

          F. "population" means the most recent official census or estimate determined by the bureau of the census or, if neither is available, "population" means an estimate as determined by the local government division of the department of finance and administration;

          G. "local tax effort" means the amount produced by a one-fourth of one percent municipal gross receipts tax in the previous fiscal year;

          H. "qualifying municipality" means a municipality with a population of less than ten thousand that has enacted on or before the last day of the preceding fiscal year an ordinance or ordinances imposing a municipal gross receipts tax pursuant to Section 7-19D-9 NMSA 1978 at a rate of one-fourth of one percent or more;

          I. "enacted" means adopted by a majority of the members of the governing body of the municipality pursuant to Section 7-19D-9 NMSA 1978 and:

                (1) for which no election has been called in the manner and within the time provided by Section 7-19D-9 NMSA 1978; or

                (2) that has been approved by a majority of the registered voters voting on the question pursuant to Section 7-19D-9 NMSA 1978; and

          J. "minimum amount" means an amount equal to [thirty-five thousand dollars ($35,000)] seventy-five thousand dollars ($75,000)."

     Section 2. Section 7-1-6.2 NMSA 1978 (being Laws 1983, Chapter 211, Section 7, as amended) is amended to read:

     "7-1-6.2. DISTRIBUTION--SMALL CITIES ASSISTANCE FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the small cities assistance fund in an amount equal to [ten] fifteen percent of the net receipts attributable to the compensating tax."

     Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2006.

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