HOUSE BILL 202

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

Thomas A. Garcia

AN ACT

RELATING TO TAXATION; PROVIDING AUTHORITY TO IMPOSE THE MUNICIPAL ENVIRONMENTAL SERVICES GROSS RECEIPTS TAX ON CERTAIN COMMUNITIES AT A MAXIMUM RATE OF ONE PERCENT.

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

     Section 1. Section 7-19D-10 NMSA 1978 (being Laws 1990, Chapter 99, Section 51, as amended) is amended to read:

     "7-19D-10. MUNICIPAL ENVIRONMENTAL SERVICES GROSS RECEIPTS TAX--AUTHORITY TO IMPOSE--ORDINANCE REQUIREMENTS.--

          A. Except as otherwise provided in this section, the majority of the members of the governing body of a municipality may enact an ordinance imposing an excise tax on any person engaging in business in the municipality for the privilege of engaging in business. The rate of the tax shall be one-sixteenth of one percent of the gross receipts of the person engaging in business.

          B. The tax imposed in accordance with Subsection A of this section may be referred to as the "municipal environmental services gross receipts tax". The imposition of a municipal environmental services gross receipts tax is not subject to referendum.

          C. The governing body of a municipality shall, at the time of enacting an ordinance imposing the rate of the tax authorized in Subsection A of this section, dedicate the revenue for acquisition, construction, operation and maintenance of solid waste facilities, water facilities, wastewater facilities, sewer systems and related facilities.

          D. The governing body of a municipality in a class B county with a net taxable value used for rate-setting purposes for the 2008 property tax year of greater than seven hundred fifty million dollars ($750,000,000) and a population in the entire county according to the most recent federal decennial census of less than twenty-five thousand may enact an ordinance imposing an excise tax on any person engaging in business in the municipality for the privilege of engaging in business; provided that:

                (1) the rate of the tax imposed shall not exceed one-half of one percent of the gross receipts of the person engaging in business;

                (2) the tax is imposed in one-fourth of one percent increments; and

                (3) the population of the municipality imposing the municipal environmental services gross receipts tax according to the most recent federal decennial census is:

                     (a) more than seven thousand five hundred but less than seven thousand eight hundred; or

                     (b) more than one thousand five hundred but less than two thousand.

          E. The governing body of a municipality in a class B county with a population according to the most recent federal decennial census of more than one thousand forty but less than one thousand fifty may enact an ordinance imposing an excise tax on any person engaging in business in the municipality for the privilege of engaging in business; provided that:

                (1) the rate of the municipal environmental services gross receipts tax imposed shall not exceed one percent of the gross receipts of the person engaging in business;

                (2) the tax is imposed in one-sixteenth of one percent increments; and

                (3) having once qualified to impose the municipal environmental services gross receipts tax pursuant to this subsection, a municipality shall remain qualified despite a change or update in census data."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2010.

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