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AN ACT

RELATING TO TAXATION; EXPANDING THE DEFINITION OF A

MUNICIPALITY ELIGIBLE TO IMPOSE THE MUNICIPAL HIGHER

EDUCATION FACILITIES GROSS RECEIPTS TAX.

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

Section 1. Section 7-19D-16 NMSA 1978 (being Laws 2007,

Chapter 148, Section 1) is amended to read:

"7-19D-16. MUNICIPAL HIGHER EDUCATION FACILITIES GROSS

RECEIPTS TAX.--

A. The majority of the members of the governing

body of an eligible municipality may impose by ordinance an

excise tax at a rate not to exceed one-fourth of one percent

of the gross receipts of a person engaging in business in the

municipality for the privilege of engaging in business. The

tax may be imposed in increments of one-sixteenth of one

percent not to exceed an aggregate rate of one-fourth of one

percent. The tax shall be imposed for a period of not more

than twenty years from the effective date of the ordinance

imposing the tax.

B. The tax imposed pursuant to this section may be

referred to as the "municipal higher education facilities

gross receipts tax".

C. The governing body, at the time of enacting an

ordinance imposing a rate of tax authorized in Subsection A

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of this section, shall dedicate the revenue only for:

(1) acquisition, construction, renovation or

improvement of facilities of a four-year post-secondary

public educational institution located in the municipality

and acquisition of or improvements to land for those

facilities; or

(2) payment of municipal higher education

facilities gross receipts tax revenue bonds issued pursuant

to Chapter 3, Article 31 NMSA 1978.

D. An ordinance imposing any increment of the

municipal higher education facilities gross receipts tax

shall not go into effect until after an election is held and

a majority of the voters of the municipality voting in the

election votes in favor of imposing the tax. The governing

body shall adopt a resolution calling for an election on the

question of imposing the tax at the next regular municipal

election. The question shall be submitted to the voters of

the municipality as a separate question. If a majority of

the voters voting on the question approves the ordinance

imposing the municipal higher education facilities gross

receipts tax, the ordinance shall become effective in

accordance with the provisions of the Municipal Local Option

Gross Receipts Taxes Act. If the question of imposing the

municipal higher education facilities gross receipts tax

fails, the governing body shall not again propose the

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imposition of any increment of the tax for a period of one

year from the date of the election.

E. For the purposes of this section, "eligible

municipality" means:

(1) a municipality that has a population

greater than fifty thousand according to the most recent

federal decennial census and that is located in a class B

county having a net taxable value for rate-setting purposes

for the 2006 property tax year or any subsequent year of more

than two billion dollars ($2,000,000,000); and

(2) any municipality that qualified under

Paragraph (1) of this subsection prior to January 1, 2008."

Section 2. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2008.