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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:
"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
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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. 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.
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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.
E. 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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