SB 1066

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AN ACT

RELATING TO MUNICIPALITIES; EXTENDING THE REPEAL DATE OF THE

HOSPITALITY FEE ACT; AMENDING LAWS 2003, CHAPTER 417,

SECTION 13.

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

Section 1. Laws 2003, Chapter 417, Section 13 is

amended to read:

"Section 13. DELAYED REPEAL.--The Hospitality Fee Act

is repealed effective July 1, 2028."

Section 2. Section 3-38A-3 NMSA 1978 (being Laws 2003,

Chapter 417, Section 3) is amended to read:

"3-38A-3. HOSPITALITY FEE AUTHORIZED--RATE--PURPOSE.--

A. A municipality may impose by ordinance a

hospitality fee on the gross rent received by proprietors of

tourist accommodations within the municipality in an amount

not to exceed one percent of the gross rent. The fee imposed

by this subsection may be referred to as the "hospitality

fee".

B. Proceeds from the hospitality fee shall be used

as follows:

(1) fifty percent of the proceeds shall be

used to equip and furnish a municipal convention center;

(2) twenty-five percent of the proceeds

shall be used by the municipality to contract to purchase

SB 1066

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advertising that publicizes and promotes tourist-related

attractions, facilities and events in the municipality and

the county and tourist facilities or attractions within the

area; and

(3) twenty-five percent of the proceeds

shall be used to extinguish debt incurred by a municipality

for a metropolitan court facility."