SENATE BILL 102

51st legislature - STATE OF NEW MEXICO - first session, 2013

INTRODUCED BY

Peter Wirth

AN ACT

RELATING TO TAXATION; AMENDING CERTAIN DEFINITIONS OF THE LODGERS' TAX ACT FOR THE PURPOSE OF IMPOSING THE TAX.

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

     SECTION 1. Section 3-38-14 NMSA 1978 (being Laws 1969, Chapter 199, Section 2, as amended) is amended to read:

     "3-38-14. DEFINITIONS.--As used in the Lodgers' Tax Act:

          A. "gross taxable rent" means the total amount of rent and fees paid by a vendee for lodging, not including the state gross receipts tax or local sales taxes;

          B. "lodging" means the transaction of [furnishing] charging rent or a fee for:

                (1) rooms or other accommodations by a vendor to a vendee who, in exchange for rent, uses, possesses or has the right to use or possess the rooms or other units of accommodations in or at a taxable premises;

                (2) a license that allows a vendee to occupy rooms or other accommodations at a taxable premises;

                (3) arranging for a vendee's occupancy of rooms or other accommodations by a vendor at a taxable premises;

                (4) establishing the total rent a vendee will pay to a vendor for rooms or other accommodations at a taxable premises; or

                (5) collecting the rent payments from the vendee;

          C. "lodgings" means the rooms or other accommodations furnished by a vendor to a vendee by a taxable service of [lodgings] lodging;

          D. "occupancy tax" means the tax on lodging authorized by the Lodgers' Tax Act;

          E. "person" means a corporation, firm, other body corporate, partnership, association or individual. "Person" includes an executor, administrator, trustee, receiver or other representative appointed according to law and acting in a representative capacity. "Person" does not include the United States of America, the state of New Mexico, any corporation, department, instrumentality or agency of the federal government or the state government or any political subdivision of the state;

          F. "rent" means the consideration received by a vendor in money, credits, property or other consideration valued in money for lodgings subject to an occupancy tax authorized in the Lodgers' Tax Act;

          G. "taxable premises" means a hotel, apartment, apartment hotel, apartment house, lodge, lodging house, rooming house, motor hotel, guest house, guest ranch, ranch resort, guest resort, mobile home, motor court, auto court, auto camp, trailer court, trailer camp, trailer park, tourist camp, cabin or other premises used for lodging;

          H. "tourist" means a person who travels for the purpose of business, pleasure or culture to a municipality or county imposing an occupancy tax;

          I. "tourist-related events" means events that are planned for, promoted to and attended by tourists;

          J. "tourist-related facilities and attractions" means facilities and attractions that are intended to be used by or visited by tourists;

          K. "tourist-related transportation systems" means transportation systems that provide transportation for tourists to and from tourist-related facilities and attractions and tourist-related events;

          L. "vendee" means a natural person to whom lodgings are furnished in the exercise of the taxable service of lodging; and

          M. "vendor" means a person or [his] the person's agent [furnishing lodgings] who, in the exercise of the taxable service of lodging:

                (1) furnishes lodgings;

                (2) offers a license that allows a vendee to occupy lodgings;

                (3) arranges for a vendee's occupancy of lodgings;

                (4) establishes the total rent a vendee will pay for lodgings; or

                (5) collects the rent payments from the vendee."

     SECTION 2. Section 3-38-15 NMSA 1978 (being Laws 1969, Chapter 199, Section 3, as amended) is amended to read:

     "3-38-15. AUTHORIZATION OF TAX--LIMITATIONS ON USE OF PROCEEDS.--

          A. A municipality may impose by ordinance an occupancy tax for revenues on lodging within the municipality, and the board of county commissioners of a county may impose by ordinance an occupancy tax for revenues on lodging within that part of the county outside of the incorporated limits of a municipality.

          B. The occupancy tax shall not exceed five percent of the gross taxable rent.

          C. Every vendor who [is furnishing any lodgings] engages in lodging within a municipality or county is exercising a taxable privilege.

          D. The following portions of the proceeds from the occupancy tax shall be used only for advertising, publicizing and promoting tourist-related facilities and attractions [facilities] and tourist-related events:

                (1) if the municipality or county imposes an occupancy tax of no more than two percent, not less than one-fourth of the proceeds shall be used for those purposes;

                (2) if the occupancy tax imposed is more than two percent and the municipality is not located in a class A county or the county is not a class A county, not less than one-half of the proceeds from the first three percent of the occupancy tax and not less than one-fourth of the proceeds from the occupancy tax in excess of three percent shall be used for those purposes; and

                (3) if the occupancy tax imposed is more than two percent and the municipality is located in a class A county or the county is a class A county, not less than one-half of the proceeds from the occupancy tax shall be used for those purposes.

          E. The proceeds from the occupancy tax in excess of the amount required to be used for advertising, publicizing and promoting tourist-related facilities and attractions [facilities] and tourist-related events may be used for any purpose authorized in Section 3-38-21 NMSA 1978.

          F. The proceeds from the occupancy tax that are required to be used to advertise, publicize and promote tourist-related facilities and attractions [facilities] and tourist-related events shall be used within two years of the close of the fiscal year in which they were collected and shall not be accumulated beyond that date or used for any other purpose.

          G. Notwithstanding the provisions of Paragraph (2) of Subsection D of this section, any use by a municipality or county of occupancy tax proceeds on January 1, 1996 may continue to be so used after July 1, 1996 in accordance with the provisions of this section and Section 3-38-21 NMSA 1978 as they were in effect prior to July 1, 1996; provided that any change in the use of those occupancy tax proceeds after July 1, 1996 is subject to the limitations of that paragraph.

          H. Notwithstanding the provisions of Paragraph (2) of Subsection D of this section, the payment of principal and interest on outstanding bonds issued prior to January 1, 1996 pursuant to Section 3-38-23 or 3-38-24 NMSA 1978 shall be made in accordance with the retirement schedules of the bonds established at the time of issuance. The amount of expenditures required under Paragraph (2) of Subsection D of this section shall be reduced each year, if necessary, to make the required payments of principal and interest of all outstanding bonds issued prior to January 1, 1996."

     SECTION 3. APPLICABILITY.--The provisions of this act apply to gross taxable rent paid on or after July 1, 2013.

     SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.

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