SENATE BILL 368

50th legislature - STATE OF NEW MEXICO - second session, 2012

INTRODUCED BY

George K. Munoz

AN ACT

RELATING TO TAXATION; CLARIFYING THAT THE ALLOCATION OF TAX PROCEEDS FROM THE LOCAL LIQUOR EXCISE TAX MAY BE INCLUDED IN JOINT POWERS AGREEMENTS.

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

     SECTION 1. Section 7-24-10.1 NMSA 1978 (being Laws 1992, Chapter 35, Section 1) is amended to read:

     "7-24-10.1. USE OF TAX PROCEEDS--LOCAL LIQUOR EXCISE TAX COMMITTEE--JOINT POWERS AGREEMENT--COMMUNITY PARTICIPATION.--

          A. Prior to [the] an election on the question of imposing a local liquor excise tax pursuant to the provisions of the Local Liquor Excise Tax Act, the governing body of a county shall enter into a joint powers agreement with the governing body of the most populated municipality and the governing bodies of any other municipalities in the county that choose to be parties to the agreement to provide for the use and administration of the tax proceeds. The agreement shall provide for the establishment and appointment of a local liquor excise tax committee to provide advice, assist in preventing duplication and supplanting of program funding and make recommendations to the governing body of [a] the county and the municipal governing bodies that are parties to the agreement on the use of the tax proceeds and may include agreements that:

                (1) clearly specify the use of the proceeds of the proposed local liquor excise tax, including the identification of specific local programs, agencies or entities that will be funded from the tax proceeds; [and]

                (2) determine the allocation of election expenses among the parties to the agreement; and

                (3) determine the allocation of the proceeds of the proposed local liquor excise tax between the county and each municipality that is a party to the agreement in proportion to the amount of tax proceeds generated within each municipality and the amount of tax proceeds generated within the county but outside of the municipalities.

          B. Prior to [any] the agreement by the governing body of a county and the municipal governing bodies for use of the proposed local liquor excise tax proceeds, the local liquor excise tax committee established pursuant to the [joint powers agreement in] provisions of Subsection A of this section shall conduct a public hearing for the purpose of inviting public comment on use of the proposed local liquor excise tax proceeds. The committee shall make every effort to provide public notice of the hearing and to invite a broad cross-section of community representatives and groups to comment on community needs. Following the hearing, the committee shall make its funding recommendations to the governing body of [a] the county and the municipal governing bodies."

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