SENATE BILL 487
49th legislature - STATE OF NEW MEXICO - first session, 2009
INTRODUCED BY
George K. Munoz
AN ACT
RELATING TO LIQUOR EXCISE TAXES; AUTHORIZING EACH COUNTY TO IMPOSE A LOCAL LIQUOR EXCISE TAX; LIMITING RATES OF LOCAL LIQUOR EXCISE TAXES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-24-9 NMSA 1978 (being Laws 1989, Chapter 326, Section 2) is amended to read:
"7-24-9. DEFINITIONS.--As used in the Local Liquor Excise Tax Act:
A. "alcoholic beverages" means distilled or rectified spirits, potable alcohol, brandy, whiskey, rum, gin and aromatic bitters or any similar alcoholic beverage, including blended or fermented beverages, dilutions or mixtures of one or more of the foregoing containing more than one-half of one percent alcohol, but excluding medicinal bitters;
B. "county" means:
(1) a class B county having a population of more than fifty-six thousand but less than seventy-five thousand, according to the most recent federal decennial census or any subsequent decennial census, and having a net taxable value for rate-setting purposes for the 1988 or any subsequent property tax year of more than five hundred million dollars ($500,000,000) but less than seven hundred million dollars ($700,000,000); or
(2) any county in the state other than a county identified in Paragraph (1) of this subsection;
C. "department" means the taxation and revenue department, the secretary of taxation and revenue or any employee of the department exercising authority lawfully delegated to that employee by the secretary;
D. "governing body" means the board of county commissioners of a county;
E. "microbrewer" means a person licensed as a small brewer pursuant to Section 60-6A-26.1 NMSA 1978 to produce beer in New Mexico and who produces less than five thousand barrels of beer in a calendar year;
[E.] F. "person" means any individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, joint venture, syndicate or other association; "person" also means, to the extent permitted by law, any federal, state or other governmental unit or subdivision or agency, department or instrumentality thereof;
[F.] G. "price" means the total amount of money or the reasonable value of other consideration or both paid for alcoholic beverages, inclusive of the amount of any tax paid pursuant to the Liquor Excise Tax Act; [and
G.] H. "retailer" means any person having a place of business within the county who sells, offers for sale or possesses for the purpose of selling alcoholic beverages within the county; and
I. "small winegrower" means a winegrower licensed pursuant to Section 60-6A-11 NMSA 1978 and who produces fewer than nine hundred fifty thousand liters of wine in a year."
Section 2. Section 7-24-10 NMSA 1978 (being Laws 1989, Chapter 326, Section 3) is amended to read:
"7-24-10. AUTHORIZATION TO IMPOSE LOCAL LIQUOR EXCISE TAX--RATE--USE OF PROCEEDS--ELECTION REQUIRED.--
A. The majority of the members elected to the governing body of a county identified in Paragraph (1) of Subsection B of Section 7-24-9 NMSA 1978 may enact an ordinance imposing on any retailer an excise tax on the price paid by the retailer for alcoholic beverages purchased by the retailer upon which the tax imposed by this section has not been paid. The tax may be imposed at a rate not to exceed five percent, provided that any lower rate shall be an even multiple of one percent. [The tax imposed under this section may be referred to as the "local liquor excise tax". Any tax imposed under this section shall be for a period of not more than three years from the effective date of the ordinance imposing the tax.]
B. The majority of the members elected to the governing body of a county identified in Paragraph (2) of Subsection B of Section 7-24-9 NMSA 1978 may enact an ordinance imposing on all wholesalers distributing alcoholic beverages to retailers in that county a "local liquor excise tax" at a rate not to exceed:
(1) on spirituous liquors, ninety-nine cents ($.99) per liter;
(2) on beer, except as provided in Paragraph (5) of this subsection, twenty-five cents ($.25) per gallon;
(3) on wine, except as provided in Paragraphs (4) and (6) of this subsection, twenty-eight cents ($.28) per liter;
(4) on fortified wine, ninety-three cents ($.93) per liter;
(5) on beer manufactured or produced by a microbrewer, which beer is sold in this state, provided that proof is furnished to the department that the beer was manufactured or produced by a microbrewer, five cents ($.05) per gallon;
(6) on wine manufactured or produced by a small winegrower and sold in New Mexico, provided that proof is furnished to the department that the wine was manufactured or produced by a small winegrower, six cents ($.06) per liter on the first eighty thousand liters sold and twelve cents ($.12) per liter on all liters sold over eighty thousand liters but less than nine hundred fifty thousand liters; and
(7) on cider, twenty-five cents ($.25) per gallon.
C. A tax imposed pursuant to this section shall be for a period of not more than three years from the effective date of the tax and may be referred to as the "local liquor excise tax".
D. Within the final year that a local liquor excise tax is in effect, the governing body may impose the tax for another three-year period, to begin in the month following the termination of the tax currently in effect, and submit the question of the tax to the voters of the county in the same manner as was required to approve the original tax.
[B. The] E. A governing body at the time of enacting an ordinance imposing [the] a tax authorized in [Subsection A of] this section shall dedicate the revenue to fund [educational programs and] direct services for the prevention and treatment of alcoholism and drug abuse within the county and for no other purpose. After approval of the imposition of a local liquor excise tax by the voters but before the effective date of the ordinance, the governing body shall hold a public meeting for the purpose of inviting comment on and suggestions for the most appropriate programs on which to expend the revenue produced by the tax. The governing body shall invite representatives from the appropriate federally recognized Indian nations, tribes [nations] and pueblos located in New Mexico to the meeting. If the governing body awards [any] a contract using funds derived from the local liquor excise tax, it shall do so only through a selection process requiring submission of sealed bids or proposals after public notice of the opportunity to submit the sealed bids or proposals.
[C.] F. The governing body enacting an ordinance imposing the local liquor excise tax shall submit the question of imposing the tax to the qualified voters of the county at a regular or special election.
[D.] G. Only those voters who are registered within the county shall be permitted to vote. The election shall be called, conducted and canvassed in substantially the same manner as provided by law for general elections.
[E.] H. If at an election called pursuant to this section a majority of the voters voting on the question [vote] votes in the affirmative on the question, then the ordinance imposing the local liquor excise tax shall be approved. If at such an election a majority of the voters voting on the question [fail] fails to approve the question, then the ordinance shall be disapproved and the question required to be submitted by [Subsection B of] this section shall not be submitted to the voters for a period of at least one year from the date of the election.
[F. Any] I. An ordinance enacted under the provisions of this section [which] that imposes a local liquor excise tax or changes the rate of tax imposed shall include an effective date [which] that is the first day of [any] a month [which] that begins no earlier than ninety days after the date of the election. A certified copy of [any] an ordinance imposing a local liquor excise tax shall be mailed or personally delivered to the department within five days after the ordinance is certified to have been approved by the voters.
[G. Any] J. An ordinance repealing the imposition of a tax under the provisions of this section shall contain an effective date [which] that is the first day of [any] a month beginning no earlier than sixty days from the date the ordinance repealing the tax is adopted by the governing body. A certified copy of [any] an ordinance repealing a local liquor excise tax shall be mailed or personally delivered to the department within five days of the date the ordinance is adopted."
Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2009.