HOUSE BILL 257

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

Candy Spence Ezzell

AN ACT

RELATING TO TAXATION; EXPANDING THE PERMISSIBLE USES OF REVENUE FROM THE MUNICIPAL ENVIRONMENTAL SERVICES GROSS RECEIPTS TAX; CHANGING THE ELIGIBILITY CRITERIA FOR IMPOSING THAT TAX.

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

     SECTION 1. Section 7-19D-10 NMSA 1978 (being Laws 1990, Chapter 99, Section 51, as amended) is amended to read:

     "7-19D-10. MUNICIPAL ENVIRONMENTAL SERVICES GROSS RECEIPTS TAX--AUTHORITY TO IMPOSE--ORDINANCE REQUIREMENTS.--

          A. [Except as otherwise provided in this section] The majority of the members of the governing body of a municipality may enact an ordinance imposing an excise tax on any person engaging in business in the municipality for the privilege of engaging in business. Except as otherwise provided in this section, the rate of the tax shall be one-sixteenth of one percent of the gross receipts of the person engaging in business.

          B. The tax imposed in accordance with Subsection A of this section may be referred to as the "municipal environmental services gross receipts tax". The imposition of a municipal environmental services gross receipts tax is not subject to referendum.

          C. The governing body of a municipality shall, at the time of enacting an ordinance imposing the rate of the tax authorized in Subsection A of this section, dedicate the revenue for the acquisition, construction, operation and maintenance of solid waste facilities, which includes the collection of solid waste and disposal of demolition debris, water facilities, wastewater facilities, sewer systems, [and] infrastructure necessary for storm water runoff control or related facilities.

          D. The governing body of a municipality in a class B county with a net taxable value used for rate-setting purposes for the 2008 property tax year of greater than [seven hundred fifty million dollars ($750,000,000)] six hundred million dollars ($600,000,000) and with a population, [in the entire county] according to the most recent federal decennial census, of less than twenty-five thousand may enact an ordinance imposing [an excise] a municipal environmental services gross receipts tax on [any person] persons engaging in business in the municipality for the privilege of engaging in business; provided that:

                (1) the rate of the tax imposed [shall] does not exceed one-half of one percent of the gross receipts of the person engaging in business;

                (2) the tax is imposed in one-fourth of one percent increments; and

                (3) the population, according to the most recent federal decennial census, of the municipality imposing the [municipal environmental services gross receipts] tax [according to the most recent federal decennial census] is:

                     (a) more than [seven] six thousand five hundred but less than seven thousand eight hundred; or

                     (b) more than one thousand five hundred but less than two thousand."

- 3 -