HOUSE BILL 192

52nd legislature - STATE OF NEW MEXICO - second session, 2016

INTRODUCED BY

Candy Spence Ezzell and Bob Wooley

AN ACT

RELATING TO TAXATION; ALLOWING MUNICIPALITIES AND COUNTIES TO USE A PORTION OF LODGERS' TAX REVENUE TO PROVIDE A REQUIRED MINIMUM REVENUE GUARANTEE FOR AIR SERVICE TO THE MUNICIPALITY OR COUNTY TO INCREASE THE ABILITY OF TOURISTS TO MORE EASILY ACCESS THE MUNICIPALITY'S OR COUNTY'S TOURIST-RELATED FACILITIES, ATTRACTIONS AND EVENTS.

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

     SECTION 1. Section 3-38-21 NMSA 1978 (being Laws 1969, Chapter 199, Section 9, as amended) is amended to read:

     "3-38-21. ELIGIBLE USES OF TAX PROCEEDS.--

          A. Subject to the limitations contained in Section 3-38-15 NMSA 1978, a municipality or county imposing an occupancy tax may use the proceeds from the occupancy tax to defray costs of:

                [A.] (1) collecting and otherwise administering the occupancy tax, including the performance of audits required by the Lodgers' Tax Act pursuant to guidelines issued by the department of finance and administration;

                [B.] (2) establishing, operating, purchasing, constructing, otherwise acquiring, reconstructing, extending, improving, equipping, furnishing or acquiring real property or any interest in real property for the site or grounds for tourist-related facilities and attractions or tourist-related transportation systems of the municipality, the county in which the municipality is located or the county;

                [C.] (3) the principal of and interest on any prior redemption premiums due in connection with and any other charges pertaining to revenue bonds authorized by Section 3-38-23 or 3-38-24 NMSA 1978;

                [D.] (4) advertising, publicizing and promoting tourist-related attractions, facilities and events of the municipality or county and [tourist] tourist-related facilities, [or] attractions and events within the area;

                [E.] (5) providing police and fire protection and sanitation service for tourist-related [events] facilities, [and] attractions and events located in the respective municipality or county; [or]

               (6) providing a required minimum revenue guarantee for air service to the municipality or county to increase the ability of tourists to easily access the municipality's or county's tourist-related facilities, attractions and events; or

                [F.] (7) any combination of the foregoing purposes or transactions stated in this section, but for no other municipal or county purpose.

          B. As used in this section, "minimum revenue guarantee" is the amount of money guaranteed by a municipality or county to be earned by an airline providing air services to and from that municipality or county, which is the difference between the minimum flight charge revenue specified in the contract between the municipality or county and the airline and the amount of actual flight charge revenue received by the airline that is less than that contractual amount."

     SECTION 2. Section 3-38-23 NMSA 1978 (being Laws 1969, Chapter 199, Section 10, as amended) is amended to read:

     "3-38-23. REVENUE BONDS.--

          A. Revenue bonds may be issued at any time or from time to time by a municipality or county to defray wholly or in part the costs of any one, all or any combination of purposes authorized in [Subsections B through E] Paragraphs (2) through (5) of Subsection A of Section 3-38-21 NMSA 1978.

          B. The revenue bonds may be payable from and such payment may be secured by a pledge of and lien on the revenues derived from:

                (1) the proceeds of the occupancy tax of the municipality or county after the deduction of those amounts required to be expended pursuant to [Subsections] Subsection D [and E] of Section 3-38-15 NMSA 1978 and the administration costs pertaining to the occupancy tax in an amount not to exceed ten percent of the occupancy tax receipts collected by the municipality or county in any fiscal year, excluding from the computation of such costs the administration costs ultimately recovered from delinquent vendors by civil action as penalties, costs of collection and [attorneys'] attorney fees but not as interest on unpaid principal;

                (2) the tourist-related facilities and attractions or tourist-related transportation systems to which the bonds pertain, after provision is made for the payment of the operation and maintenance expenses of [such] the tourist-related facilities and attractions or tourist-related transportation systems; or

                (3) a combination of such net revenues from both sources designated in Paragraphs (1) and (2) of this subsection.

          C. The bonds shall bear interest at a rate [or rates] as authorized in the Public Securities Act, and the first interest payment may be for any period authorized in the Public Securities Act.

          D. Except as otherwise provided in the Lodgers' Tax Act, revenue bonds authorized in the Lodgers' Tax Act shall be issued in accordance with the provisions of Sections 3-31-2 through 3-31-6 NMSA 1978."

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