SENATE BILL 39

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

INTRODUCED BY

Carlos R. Cisneros

AN ACT

RELATING TO TAXATION; GRADUATING THE RATE OF THE GAMING TAX ON CERTAIN RACETRACKS BASED ON THE RACETRACK'S NET TAKE.

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

     Section 1. Section 60-2E-47 NMSA 1978 (being Laws 1997, Chapter 190, Section 49, as amended) is amended to read:

     "60-2E-47. GAMING TAX--IMPOSITION--ADMINISTRATION.--

          A. An excise tax is imposed on the privilege of engaging in gaming activities in the state. This tax shall be known as the "gaming tax".

          B. The gaming tax is an amount equal to:

                (1) ten percent of the gross receipts of manufacturer licensees from the sale, lease or other transfer of gaming devices in or into the state, except receipts of a manufacturer from the sale, lease or other transfer to a licensed distributor for subsequent sale or lease may be excluded from gross receipts;

                (2) ten percent of the gross receipts of distributor licensees from the sale, lease or other transfer of gaming devices in or into the state;

                (3) ten percent of the net take of a gaming operator licensee that is a nonprofit organization; and

                (4) twenty-six percent of the net take of every other gaming operator licensee, except, if the total net take for a racetrack gaming operator licensee in the preceding fiscal year was less than fourteen million dollars ($14,000,000), then the gaming tax is an amount equal to:

                      (a) for fiscal year 2011, twenty percent of the net take of the gaming operator licensee; provided that if the cumulative net take for fiscal year 2011 exceeds ten million dollars ($10,000,000), the gaming tax for that gaming operator licensee for the remainder of that fiscal year is twenty-six percent of that gaming operator licensee's net take;

                     (b) for fiscal year 2012, fifteen percent of the net take of the gaming operator licensee; provided that if the cumulative net take for fiscal year 2012 exceeds ten million dollars ($10,000,000), the gaming tax for that gaming operator licensee for the remainder of that fiscal year is twenty-six percent of that gaming operator licensee's net take; and

                     (c) for fiscal year 2013 and subsequent

fiscal years, ten percent of the net take of the gaming operator licensee; provided that if the cumulative net take for any fiscal year exceeds ten million dollars ($10,000,000), the gaming tax for that gaming operator licensee for the remainder of that fiscal year is twenty-six percent of that gaming operator licensee's net take. [For the purposes of this section, "gross receipts" means the total amount of money or the value of other consideration received from selling, leasing or otherwise transferring gaming devices.]

          C. The gaming tax imposed on a licensee is in lieu of all state and local gross receipts taxes on that portion of the licensee's gross receipts attributable to gaming activities.

          D. The gaming tax is to be paid on or before the fifteenth day of the month following the month in which the taxable event occurs. The gaming tax shall be administered and collected by the taxation and revenue department in cooperation with the board. The provisions of the Tax Administration Act apply to the collection and administration of the tax.

          E. In addition to the gaming tax, a gaming operator licensee that is a racetrack shall pay twenty percent of its net take to purses to be distributed in accordance with rules adopted by the state racing commission. An amount not to exceed twenty percent of the interest earned on the balance of any fund consisting of money for purses distributed by racetrack gaming operator licensees pursuant to this subsection may be expended for the costs of administering the distributions. A racetrack gaming operator licensee shall spend no less than one-fourth percent of the net take of its gaming machines to fund or support programs for the treatment and assistance of compulsive gamblers.

          F. A nonprofit gaming operator licensee shall distribute at least sixty percent of the balance of its net take, after payment of the gaming tax and any income taxes,

for charitable or educational purposes.

          G. To determine the net take in a preceding fiscal

year, a gaming operator licensee shall calculate the cumulative net take receipts from July 1 through June 30 of the fiscal year for which the net take is being calculated. The net take receipts are those reported monthly to the taxation and revenue department in the twelve-month period beginning on August 25 of that fiscal year.

          H. As used in this section:

                (1) "fiscal year" means the state fiscal year

beginning on July 1 and ending on June 30 of the year designated in the name of the fiscal year; and

                (2) "gross receipts" means the total amount of

money or the value of other consideration received from selling, leasing or otherwise transferring gaming devices."

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

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