HOUSE BILL 430

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

Sarah Maestas Barnes and Patricio Ruiloba and Rod Montoya

and Steven P. Neville

AN ACT

RELATING TO MUNICIPALITIES; PROHIBITING A MUNICIPALITY FROM IMPOSING AN EXCISE TAX ON FOOD OR BEVERAGES.

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

     SECTION 1. Section 3-18-2 NMSA 1978 (being Laws 1972, Chapter 26, Section 1, as amended) is amended to read:

     "3-18-2. PROHIBITION ON MUNICIPAL TAXING POWER.--

          A. Unless otherwise provided by law, no municipality may impose:

                [A.] (1) an income tax;

                [B.] (2) a tax on property measured on an ad valorem, per unit or other basis; or

                [C.] (3) any excise tax, including [but not limited to]:

                     [(1)] (a) sales taxes;

                     [(2)] (b) gross receipts taxes; and

                     [(3)] (c) excise taxes on any incident relating to: [(a)] 1) tobacco; [(b)] 2) liquor; [(c)] 3) food or beverages; 4) motor fuels; and [(d)] 5) motor vehicles.

          [D.] B. However, any municipality may impose excise taxes of the sales, gross receipts or any other type on specific products and services, other than those enumerated in Subparagraph (c) of Paragraph (3) of Subsection [C] A of this section, if the products and services taxed are each named specifically in the ordinance imposing the tax on them and if the ordinance is approved by a majority vote in the municipality.

          [E. Subsections C and D] C. The provisions in Paragraph (3) of Subsection A and in Subsection B of this section shall not [be construed to] apply to [or otherwise affect any occupation tax imposed prior to or after the effective date of this act under Sections 3-38-1 through 3-38-12 NMSA 1978, as those sections may be amended from time to time; provided the provisions of this subsection shall not apply to the sale of motor vehicles] a license fee authorized pursuant to Section 3-38-1 NMSA 1978."

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