HOUSE BILL 262
49th legislature - STATE OF NEW MEXICO - second session, 2010
INTRODUCED BY
Edward C. Sandoval
AN ACT
RELATING TO TAX ADMINISTRATION; INCREASING CERTAIN ADMINISTRATIVE FEES CHARGED BY THE TAXATION AND REVENUE DEPARTMENT BY ONE-FOURTH PERCENT; ADJUSTING SECTION REFERENCES ACCORDINGLY; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-1-6.12 NMSA 1978 (being Laws 1983, Chapter 211, Section 17, as amended) is amended to read:
"7-1-6.12. TRANSFER--REVENUES FROM MUNICIPAL LOCAL OPTION GROSS RECEIPTS TAXES.--
A. A transfer pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each municipality for which the department is collecting a local option gross receipts tax imposed by that municipality in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the net receipts attributable to the local option gross receipts tax imposed by that municipality, less any deduction for administrative cost determined and made by the department pursuant to the provisions of the act authorizing imposition by that municipality of the local option gross receipts tax [and any additional administrative fee withheld pursuant to Subsection C of Section 7-1-6.41 NMSA 1978].
B. A transfer pursuant to this section may be adjusted for a distribution made to a tax increment development district with respect to a portion of a gross receipts tax increment dedicated by a municipality pursuant to the Tax Increment for Development Act."
Section 2. Section 7-1-6.13 NMSA 1978 (being Laws 1983, Chapter 211, Section 18, as amended) is amended to read:
"7-1-6.13. TRANSFER--REVENUES FROM COUNTY LOCAL OPTION GROSS RECEIPTS TAXES.--
A. Except as provided in [Subsections] Subsection B [and C] of this section, a transfer pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each county for which the department is collecting a local option gross receipts tax imposed by that county in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the net receipts attributable to the local option gross receipts tax imposed by that county, less any deduction for administrative cost determined and made by the department pursuant to the provisions of the act authorizing imposition by that county of the local option gross receipts tax [and any additional administrative fee withheld pursuant to Subsection C of Section 7-1-6.41 NMSA 1978].
B. A transfer pursuant to this section may be adjusted for a distribution made to a tax increment development district with respect to a portion of a gross receipts tax increment dedicated by a county pursuant to the Tax Increment for Development Act.
[C. Through June 30, 2009, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the sole community provider fund from revenue attributable to the county gross receipts tax imposed by a county pursuant to Section 7-20E-9 NMSA 1978, subject to the approval of the board of county commissioners of that county. The distribution shall be in an amount equal to one-twelfth of the county's annual approved contribution for support of sole community provider payments. Revenue in excess of the amount required for the contribution shall be transferred to the county pursuant to the provisions of Subsection A of this section.]"
Section 3. Section 7-1-6.32 NMSA 1978 (being Laws 1990, Chapter 99, Section 44, as amended) is amended to read:
"7-1-6.32. DISTRIBUTION--SOLID WASTE ASSESSMENT FEE.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the solid waste facility grant fund of the net receipts attributable to the solid waste assessment fee authorized under the Solid Waste Act less any administrative fee withheld pursuant to Section [1 of this 1997 act] 7-1-6.41 NMSA 1978."
Section 4. Section 7-1-6.41 NMSA 1978 (being Laws 1997, Chapter 125, Section 1) is amended to read:
"7-1-6.41. ADMINISTRATIVE FEE IMPOSED--APPROPRIATION.--
[A. The taxation and revenue department is directed to withhold an administrative fee of three percent of the net amount to be distributed under the provisions of:
(1) Section 7-1-6.32 NMSA 1978;
(2) Section 66-12-20 NMSA 1978; and
(3) Section 74-1-13 NMSA 1978.
B. The administrative fee to be withheld pursuant to Subsection A of this section shall be withheld on distributions made on or after July 1, 1997 and shall continue until the earlier of December 31, 2006 or the date on which the New Mexico finance authority certifies to the taxation and revenue department that all obligations for bonds issued
pursuant to Section 12 of this 1997 act have been fully discharged and directs the department to cease distributing money to the authority pursuant to this section.
C. The taxation and revenue department is directed to withhold an additional administrative fee at the following percentage of the net amount to be distributed pursuant to the following provisions of law:
(1) two percent of the net amount to be distributed pursuant to Section 7-1-6.12 NMSA 1978; and
(2) six-tenths of one percent of the net amount to be distributed pursuant to Section 7-1-6.13 NMSA 1978.
D. The administrative fee to be withheld under Subsection C of this section shall be withheld on distributions made on or after July 1, 1997 and shall continue until the earlier of July 1, 2000 or the date on which the New Mexico finance authority certifies to the taxation and revenue department that all obligations for bonds issued pursuant to Section 12 of this 1997 act have been fully discharged and directs the department to cease distributing money to the authority pursuant to this section.
E.] A. The administrative fee to be withheld by the [taxation and revenue] department under [Section] Sections 7-1-6.12 and 7-1-6.13 NMSA 1978 or pursuant to any other provision of law that requires the department to withhold an administrative fee pursuant to this section shall be set at three and twenty-five hundredths percent of the net amount to be distributed pursuant to the provisions of those sections.
[F. The administrative fee to be withheld under Subsection E of this section shall be withheld on distributions made on or after July 1, 2000 and shall continue until the earlier of December 31, 2006 or the date on which the New Mexico finance authority certifies to the taxation and revenue department that all obligations for bonds issued pursuant to Section 12 of this 1997 act have been fully discharged and directs the department to cease distributing money to the authority pursuant to this section. After the department has been directed by the authority to cease distributing money to the authority pursuant to this section, the administrative fee shall be remitted to the state treasurer for deposit in the state general fund each month.
G. The administrative fee shall be distributed monthly to the New Mexico finance authority to be pledged irrevocably for the payment of principal, interest and any expenses or obligations related to the bonds issued by the authority to finance the taxation and revenue information management systems project.]
B. The portion of the administrative fee withheld pursuant to the provisions of this section equal to twenty-five hundredths percent of the amount to be distributed pursuant to Sections 7-1-6.12 and 7-1-6.13 NMSA 1978 shall be retained by the department and is appropriated to the department for audit and collection activities. The remaining portion of the administrative fee shall be remitted to the state treasurer each month for deposit in the state general fund."
Section 5. Section 7-19D-7 NMSA 1978 (being Laws 1993, Chapter 346, Section 7, as amended) is amended to read:
"7-19D-7. COLLECTION BY DEPARTMENT--TRANSFER OF
PROCEEDS--DEDUCTIONS.--
A. The department shall collect each tax imposed pursuant to the provisions of the Municipal Local Option Gross Receipts Taxes Act in the same manner and at the same time it collects the state gross receipts tax.
B. Except as provided in Subsection C of this section, the department shall withhold an administrative fee pursuant to Section [1 of this 1997 act] 7-1-6.41 NMSA 1978. The department shall transfer to each municipality for which it is collecting a tax pursuant to the provisions of the Municipal Local Option Gross Receipts Taxes Act the amount of each tax collected for that municipality, less the administrative fee withheld and less any disbursements for tax credits, refunds and the payment of interest applicable to the tax. The transfer to the municipality shall be made within the month following the month in which the tax is collected.
C. With respect to the municipal gross receipts tax imposed by a municipality pursuant to Section 7-19D-9 NMSA 1978, the department shall withhold the administrative fee pursuant to Section [1 of this 1997 act] 7-1-6.41 NMSA 1978 only on that portion of the municipal gross receipts tax arising from a municipal gross receipts tax rate in excess of one-half of one percent."
Section 6. Section 66-12-20 NMSA 1978 (being Laws 1959, Chapter 338, Section 19, as amended) is amended to read:
"66-12-20. DISPOSITION OF FEES.--The fees collected pursuant to the provisions of the Boat Act, less the administrative fee withheld pursuant to Section [1 of this 1997 act] 7-1-6.41 NMSA 1978, shall be [covered into the state park and recreation fund] distributed and appropriated to the energy, minerals and natural resources department for use pursuant to the provisions of Section 16-2-19 NMSA 1978. Money distributed pursuant to this section shall not revert to the general fund."
Section 7. Section 74-1-13 NMSA 1978 (being Laws 1993, Chapter 317, Section 2, as amended) is amended to read:
"74-1-13. WATER CONSERVATION FEE--IMPOSITION--DEFINITIONS.--
A. There is imposed on every person who operates a public water supply system a water conservation fee in an amount equal to three cents ($.03) per thousand gallons of water produced on which the fee imposed by this subsection has not been paid.
B. The "water conservation fund" is created in the state treasury and shall be administered by the department [of environment]. The fund shall consist of water conservation fees collected pursuant to this section. Balances in the fund at the end of any fiscal year shall not revert to the general fund but shall accrue to the credit of the fund. Earnings on the fund shall be credited to the fund.
C. Money in the water conservation fund is appropriated to the department [of environment] for administration of a public water supply program to:
(1) test public water supplies for the contaminants required to be tested pursuant to the provisions of Section 1412 of the federal Safe Drinking Water Act of 1974, as finalized through July 1, 1992, and collect chemical compliance samples as required by those provisions of the federal act;
(2) perform vulnerability assessments [which] that will be used to assess a public water supply's susceptibility to those contaminants; and
(3) implement new requirements of the Utility Operators Certification Act and provide training for all public water supply operators.
D. The taxation and revenue department shall provide by regulation for the manner and form of collection of the water conservation fee. All water conservation fees collected by the taxation and revenue department, less the administrative fee withheld pursuant to Section [1 of this 1997 act] 7-1-6.41 NMSA 1978, shall be deposited in the water conservation fund.
E. The fee imposed by this section shall be administered in accordance with the provisions of the Tax Administration Act and shall be paid to the taxation and revenue department by each person who operates a public water supply system in the manner required by the department on or before the twenty-fifth day of the month following the month in which the water is produced.
F. Each operator of a public water supply system shall register and comply with the provisions of Section 7-1-12 NMSA 1978 and furnish such information as may be required by the taxation and revenue department.
G. As used in this section:
(1) "person" means any individual or legal entity and also means, to the extent permitted by law, any federal, state or other governmental unit or subdivision or an agency, department or instrumentality thereof; and
(2) "public water supply system" means a system that provides piped water to the public for human consumption and that has at least fifteen service connections or regularly services an average of at least twenty-five individuals at least sixty days per year."
Section 8. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2010.
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