HOUSE BILL 215

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

INTRODUCED BY

Sheryl Williams Stapleton and Nate Gentry and Mark Moores

AN ACT

RELATING TO THE STATE FAIRGROUNDS; ENACTING THE STATE FAIR FUNDING ACT; AUTHORIZING A STATE FAIR SURCHARGE; PROHIBITING PROCEEDS OF THE STATE FAIR SURCHARGE TO BE USED TO BENEFIT PROPERTY LEASED TO OR UNDER THE CONTROL OF A PERSON LICENSED PURSUANT TO THE HORSE RACING ACT OR THE GAMING CONTROL ACT; EXEMPTING FROM THE GROSS RECEIPTS AND GOVERNMENTAL GROSS RECEIPTS TAXES RECEIPTS ATTRIBUTABLE TO THE STATE FAIRGROUNDS IF A STATE FAIR SURCHARGE IS IMPOSED.

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

     SECTION 1. Section 7-1-2 NMSA 1978 (being Laws 1965, Chapter 248, Section 2, as amended) is amended to read:

     "7-1-2. APPLICABILITY.--The Tax Administration Act applies to and governs:

          A. the administration and enforcement of the following taxes or tax acts as they now exist or may hereafter be amended:

                (1) Income Tax Act;

                (2) Withholding Tax Act;

                (3) Venture Capital Investment Act;

                (4) Gross Receipts and Compensating Tax Act and any state gross receipts tax;

                (5) Liquor Excise Tax Act;

                (6) Local Liquor Excise Tax Act;

                (7) any municipal local option gross receipts tax;

                (8) any county local option gross receipts tax;

                (9) Special Fuels Supplier Tax Act;

                (10) Gasoline Tax Act;

                (11) petroleum products loading fee, which fee shall be considered a tax for the purpose of the Tax Administration Act;

                (12) Alternative Fuel Tax Act;

                (13) Cigarette Tax Act;

                (14) Estate Tax Act;

                (15) Railroad Car Company Tax Act;

                (16) Investment Credit Act, rural job tax credit, Laboratory Partnership with Small Business Tax Credit Act, Technology Jobs Tax Credit Act, film production tax credit, [New Mexico filmmaker tax credit] Affordable Housing Tax Credit Act, high-wage jobs tax credit and Research and Development Small Business Tax Credit Act;

                (17) Corporate Income and Franchise Tax Act;

                (18) Uniform Division of Income for Tax Purposes Act;

                (19) Multistate Tax Compact;

                (20) Tobacco Products Tax Act; and

                (21) the telecommunications relay service surcharge imposed by Section 63-9F-11 NMSA 1978, which surcharge shall be considered a tax for the purposes of the Tax Administration Act;

          B. the administration and enforcement of the following taxes, surtaxes, advanced payments or tax acts as they now exist or may hereafter be amended:

                (1) Resources Excise Tax Act;

                (2) Severance Tax Act;

                (3) any severance surtax;

                (4) Oil and Gas Severance Tax Act;

                (5) Oil and Gas Conservation Tax Act;

                (6) Oil and Gas Emergency School Tax Act;

                (7) Oil and Gas Ad Valorem Production Tax Act;

                (8) Natural Gas Processors Tax Act;

                (9) Oil and Gas Production Equipment Ad Valorem Tax Act;

                (10) Copper Production Ad Valorem Tax Act;

                (11) any advance payment required to be made by any act specified in this subsection, which advance payment shall be considered a tax for the purposes of the Tax Administration Act;

                (12) Enhanced Oil Recovery Act;

                (13) Natural Gas and Crude Oil Production Incentive Act; and

                (14) intergovernmental production tax credit and intergovernmental production equipment tax credit;               C. the administration and enforcement of the following taxes, surcharges, fees or acts as they now exist or may hereafter be amended:

                (1) Weight Distance Tax Act;

                (2) the workers' compensation fee authorized by Section 52-5-19 NMSA 1978, which fee shall be considered a tax for purposes of the Tax Administration Act;

                (3) Uniform Unclaimed Property Act (1995);

                (4) 911 emergency surcharge and the network and database surcharge, which surcharges shall be considered taxes for purposes of the Tax Administration Act;

                (5) the solid waste assessment fee authorized by the Solid Waste Act, which fee shall be considered a tax for purposes of the Tax Administration Act;

                (6) the water conservation fee imposed by Section 74-1-13 NMSA 1978, which fee shall be considered a tax for the purposes of the Tax Administration Act; [and]

                (7) the gaming tax imposed pursuant to the Gaming Control Act; and

                (8) the state fair surcharge, which surcharge shall be considered a tax for purposes of the Tax Administration Act; and

          D. the administration and enforcement of all other laws, with respect to which the department is charged with responsibilities pursuant to the Tax Administration Act, but only to the extent that the other laws do not conflict with the Tax Administration Act."

     SECTION 2. A new section of the Tax Administration Act is enacted to read:

     "[NEW MATERIAL] TRANSFER--STATE FAIR SURCHARGE.--A transfer pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state fair commission in an amount equal to the net receipts attributable to the state fair surcharge."

     SECTION 3. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:

     "[NEW MATERIAL] EXEMPTION--GROSS RECEIPTS TAX AND GOVERNMENTAL GROSS RECEIPTS TAX--STATE FAIR SURCHARGE.-- Exempted from the gross receipts tax and from the governmental gross receipts tax are the receipts from selling tickets, parking, souvenirs, concessions, programs, advertising, merchandise and corporate suites or boxes; broadcast revenues; and all other products, services or activities sold at, related to or occurring at the state fairgrounds on which a state fair surcharge is imposed pursuant to the State Fair Funding Act."

     SECTION 4. [NEW MATERIAL] SHORT TITLE.--Sections 4 through 10 of this act may be cited as the "State Fair Funding Act".

     SECTION 5. [NEW MATERIAL] DEFINITIONS.--As used in the State Fair Funding Act:

          A. "event center" means an event center located in the exposition center that provides seating for ten to fifteen thousand people and includes land, buildings and related improvements that are primarily designed and intended for cultural, educational, entertainment and sporting events, but does not include a civic or convention center;

          B. "state fair commission" means the state fair commission whose members are appointed by the governor pursuant to Section 16-6-1 NMSA 1978;

          C. "state fairgrounds" means real or personal property located on land owned by the state, commonly known as the "state fairgrounds", within the exterior boundaries of the city of Albuquerque;

          D. "vendor" means every person, corporation, partnership or other entity, including a division or department of the state or a political subdivision of the state, providing products or services sold at or related to the state fairgrounds; and

          E. "vendor contract" means a contract, agreement or other written arrangement between the state fair commission and a vendor pursuant to which the vendor provides products or services sold at or related to the state fairgrounds, including tickets, parking, souvenirs, concessions, programs, advertising, merchandise, corporate suites or boxes and broadcast revenues.

     SECTION 6. [NEW MATERIAL] AUTHORIZATION OF SURCHARGE--USE OF PROCEEDS.--

          A. There is imposed a surcharge of six and five-sixteenths percent of each vendor contract entered into by the state fair commission. The surcharge imposed pursuant to this section may be referred to as the "state fair surcharge".

          B. The state fair commission shall include the state fair surcharge in the terms of each vendor contract into which it enters. The chair of the state fair commission shall sign each vendor contract into which the commission enters.

          C. The state fair commission shall establish a fund for deposit of all state fair surcharge proceeds transferred to the commission pursuant to Section 2 of this 2016 act. Money in the fund shall be used as determined by the state fair commission and in accordance with Sections 16-6-13 through 16-6-22 NMSA 1978; provided that money in the fund:

                (1) shall first be used to pay the costs of constructing, renovating, equipping or maintaining an event center and related event center improvements or to pay debt service payments on bonds secured for the same purposes; and

                (2) shall not be used to benefit land, or any buildings, improvements or personal property located on the land, that is leased to or under the direct control of a person licensed as a racetrack licensee pursuant to the Horse Racing Act or as a licensee pursuant to the Gaming Control Act.

     SECTION 7. [NEW MATERIAL] COLLECTION OF STATE FAIR SURCHARGE--REMITTANCE TO THE TAXATION AND REVENUE DEPARTMENT.--Upon the sale of a product or service subject to the state fair surcharge, a vendor shall collect the surcharge from the purchaser of that product or service. The surcharge collected shall be remitted monthly to the taxation and revenue department, which shall administer and enforce collection of the surcharge in accordance with the Tax Administration Act. The surcharge shall be remitted to the department no later than the twenty-fifth day of the month following the month in which the surcharge was imposed. At that time, a return for the preceding month shall be filed with the department in such form as the department prescribes. A vendor required to file a return shall deliver the return together with a remittance of the amount of the surcharge payable to the department. The vendor shall maintain a record of the amount of each surcharge collected for a period of three years after the time the surcharges were collected.

     SECTION 8. [NEW MATERIAL] AUDITS.--The state fair commission shall provide a method to audit or otherwise ensure that vendors subject to the state fair surcharge collect and remit to the taxation and revenue department the full amount of the surcharge receipts due to the state fair commission.

     SECTION 9. [NEW MATERIAL] ENFORCEMENT--PENALTIES.--

          A. An action to enforce the imposition and collection of a state fair surcharge by a vendor may be brought by the state fair commission.

          B. A district court may issue an appropriate judgment, order or remedy to enforce the provisions of a vendor contract.

          C. A judgment issued by a district court requiring state fair surcharge receipts to be paid to the taxation and revenue department by a vendor shall also award interest at an annual rate of twelve percent on past due amounts, attorney fees and costs to the state fair commission.

     SECTION 10. [NEW MATERIAL] ISSUANCE OF BONDS.--

          A. The state fair commission may issue revenue bonds, in accordance with the procedures set forth in Sections 16-6-16 through 16-6-22 NMSA 1978 and Section 6 of this 2016 act.

          B. Revenue bonds issued by the state fair commission may be secured by state fair surcharge receipts.

          C. An action shall not be brought questioning the legality of the pledge of state fair surcharge receipts bonds issued pursuant to the State Fair Funding Act, issuance of those bonds, a state fair surcharge included in a vendor contract or any other matter concerning the bonds after thirty days from the date of publication of the state board of finance authorizing issuance of the bonds and the pledging of state fair surcharge receipts to make debt service payments.

          D. The legislature shall not repeal, amend or otherwise modify any law or ordinance that adversely affects or impairs the state fair surcharge or any bonds secured by a pledge of the state fair surcharge receipts unless the bonds have been paid in full or provisions have been made for full payment.

     SECTION 11. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2016.

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