HOUSE JUDICIARY COMMITTEE SUBSTITUTE FOR
HOUSE BILL 1032
48th legislature - STATE OF NEW MEXICO - first session, 2007
AN ACT
RELATING TO SPECIAL DISTRICTS; CREATING A WATER AND SANITATION GROSS RECEIPTS TAX; ENACTING SECTIONS OF THE NMSA 1978.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the County Local Option Gross Receipts Taxes Act is enacted to read:
"[NEW MATERIAL] WATER AND SANITATION GROSS RECEIPTS TAX--AUTHORITY TO IMPOSE--RATE--ELECTION--USE OF REVENUE.--
A. An excise tax imposed by a governing body pursuant to this section may be referred to as the "water and sanitation gross receipts tax". The water and sanitation gross receipts tax shall be imposed by a governing body as set forth in this section, contingent upon a majority of the voters voting in an election on the question of whether to impose a water and sanitation gross receipts tax voting in favor of the imposition.
B. Upon receipt of a resolution adopted and submitted by the board of directors of a water and sanitation district that requests the governing body to impose a water and sanitation gross receipts tax on behalf of the water and sanitation district, a governing body shall enact an ordinance imposing a water and sanitation gross receipts tax in that water and sanitation district. The ordinance shall impose the tax at a rate of one-fourth percent on a person engaging in business within the area of the county located within the water and sanitation district for the privilege of engaging in business within that water and sanitation district within the county.
C. The governing body, at the time of enacting an
ordinance imposing a water and sanitation gross receipts tax authorized pursuant to Subsection A of this section, shall dedicate the revenue only for the operation of the water and sanitation district for which the tax is imposed. The tax shall be imposed for six years from the date on which the water and sanitation gross receipts tax goes into effect.
D. A water and sanitation district created pursuant to the Water and Sanitation District Act in a class B county, the population of which pursuant to the most recent federal decennial census was greater than twenty-nine thousand but less than thirty-three thousand, with a net taxable value for rate-setting purposes for the 2006 property tax year or a subsequent property tax year of more than eight hundred fifty million dollars ($850,000,000) but less than one billion dollars ($1,000,000,000) as determined by the local government division of the department of finance and administration, may adopt a resolution requesting the county in which the water and sanitation district is located to impose a water and sanitation gross receipts tax, and to call an election on the question within the water and sanitation district of whether the water and sanitation gross receipts tax shall be imposed. E. Within sixty days of the date the ordinance is adopted by the governing body, the governing body shall adopt a resolution calling for an election on the question of whether to impose a water and sanitation gross receipts tax. The question shall be submitted to the voters of the water and sanitation district requesting the county to impose the tax. A special election shall be called, conducted and canvassed in substantially the same manner as provided by law for general elections. If a majority of the voters voting on the question approves the ordinance imposing the water and sanitation gross receipts tax, then the ordinance shall become effective in accordance with the provisions of the County Local Option Gross Receipts Taxes Act on either January 1 or July 1 following the election approving the imposition of the tax. If the question of imposing the water and sanitation gross receipts tax fails, a resolution from the board of directors of the water and sanitation district initiating the request to the county to impose a water and sanitation gross receipts tax may not again be submitted to the governing body for a period of one year from the date of the election.
F. The proceeds from the water and sanitation gross receipts tax shall be administered by the governing body and disbursed by the county treasurer to the appropriate water and sanitation district in amounts and for the purposes authorized in this section and as set out in the resolution submitted by the board of directors to the governing body. An agreement shall be entered into between the water and sanitation district and the governing body that sets out the responsibilities of both parties regarding administration, distribution and use of the revenue from the water and sanitation gross receipts tax."
Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.
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