SENATE BILL 483

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

George K. Munoz

AN ACT

RELATING TO TAXATION; CLARIFYING POLITICAL SUBDIVISION QUALIFICATIONS FOR IMPOSING CERTAIN TAXES.

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

     SECTION 1. A new section of the Tax Administration Act is enacted to read:

     "[NEW MATERIAL] TAXES IMPOSED BY QUALIFIED POLITICAL SUBDIVISIONS--LEGISLATIVE INTENT--CONTINUING QUALIFICATION.--

          A. It is the intent of the legislature that once a political subdivision authorized by virtue of area, population, net taxable base for rate-setting purposes or other criteria to impose a tax does so in accordance with applicable law, the political subdivision shall not be automatically precluded from continuing to impose or reimpose that tax even though it may no longer meet one or more of the criteria that qualified it to impose the tax in the first place.

          B. Once a tax has been imposed by a political subdivision pursuant to the provisions of Chapter 7 NMSA 1978, the political subdivision shall not lose its qualifying status to continue to impose or reimpose that tax based upon any change in county classification, area, population or net taxable base for rate-setting purposes, provided that the tax has not been repealed or terminated."

     SECTION 2. APPLICABILITY.--The provisions of this act shall apply retroactively.

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