0001|                           HOUSE BILL 1255
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0002|     43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003|                            INTRODUCED BY
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0004|                           JERRY W. SANDEL
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO TAXATION; IMPOSING A TAX FOR THE PRIVILEGE OF
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0012|     MANUFACTURING OR DISTRIBUTING GAMING MACHINES; PROVIDING FOR
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0013|     THE ADMINISTRATION AND ENFORCEMENT OF THE TAX; CREATING A FUND;
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0014|     MAKING AN APPROPRIATION.
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0015|     
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0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017|          Section 1.  SHORT TITLE.--This act may be cited as the
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0018|     "Gaming Impact Tax Act".
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0019|          Section 2.  DEFINITIONS.--As used in the Gaming Impact Tax
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0020|     Act:
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0021|               A.  "department" means the taxation and revenue
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0022|     department, the secretary of taxation and revenue or any
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0023|     employee of the taxation and revenue department exercising
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0024|     authority lawfully delegated to him by the secretary of
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0025|     taxation and revenue;
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0001|               B.  "distributing" means supplying or selling gaming
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0002|     machines in New Mexico;
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0003|               C.  "gaming machine" means a mechanical,
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0004|     electromechanical or electronic contrivance or machine that
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0005|     upon insertion of a coin, token or similar object, or upon
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0006|     payment of any consideration, is available to play or operate a
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0007|     game, whether the payoff is made automatically from the machine
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0008|     or in any other manner;
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0009|               D.  "manufacturing" means assembling, producing,
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0010|     programming, making or modifying a gaming machine; and
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0011|               E.  "person" means an individual or any legal
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0012|     entity.
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0013|          Section 3.  GAMING IMPACT TAX IMPOSED--PAYMENT OF TAX.--
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0014|               A.  For the privilege of manufacturing or
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0015|     distributing gaming machines, every person who manufactures or
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0016|     distributes gaming machines for use in New Mexico shall pay a
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0017|     fee of two thousand dollars ($2,000) for each gaming machine
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0018|     manufactured or distributed for use in New Mexico on which the
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0019|     fee has not been paid.
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0020|               B.  The fee imposed by this section shall be known
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0021|     as the "gaming impact tax".
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0022|               C.  The gaming impact tax is imposed at the time
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0023|     that:
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0024|                    (1)  a manufacturer delivers a gaming machine
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0025|     to another person for the purpose of sale or use by the person
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0001|     to whom the gaming machine is delivered; or
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0002|                    (2)  a distributor delivers a gaming machine to
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0003|     another person for the purpose of use by the person to whom the
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0004|     gaming machine is delivered.
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0005|               E.  The gaming impact tax shall be paid to the
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0006|     department on the twenty-fifth day of the month following the
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0007|     month in which the tax is imposed.
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0008|          Section 4.  GAMING IMPACT FUND CREATED--PURPOSE.--
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0009|               A.  The "gaming impact fund" is created in the state
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0010|     treasury and shall consist of the net receipts from the gaming
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0011|     impact tax imposed pursuant to the Gaming Impact Tax Act and
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0012|     any other money distributed, transferred or otherwise accruing
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0013|     to the fund.  Earnings from investment of the fund shall be
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0014|     credited to the fund, and balances at the end of any fiscal
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0015|     year shall not revert to the general fund.
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0016|               B.  Money in the gaming impact fund is available for
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0017|     appropriation annually by the legislature to address gaming
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0018|     impacts and includes, but is not limited to, appropriation for
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0019|     education, social and welfare services, infrastructure
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0020|     development, transportation, law enforcement and public safety.
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0021|          Section 5.  GAMING IMPACT TAX--INTERPRETATION OF ACT--
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0022|     ADMINISTRATION AND ENFORCEMENT OF ACT.--
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0023|               A.  The department shall interpret the provisions of
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0024|     the Gaming Impact Tax Act.
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0025|               B.  The department shall administer and enforce the
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0001|     collection of the gaming impact tax authorized by the Gaming
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0002|     Impact Tax Act, and the Tax Administration Act applies to the
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0003|     administration and enforcement of the tax.
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0004|          Section 6.  A new section of the Tax Administration Act is
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0005|     enacted to read:
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0006|          "[<u>NEW MATERIAL</u>]  DISTRIBUTION--GAMING IMPACT TAX.--A
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0007|     distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be
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0008|     made to the gaming impact fund in an amount equal to the net
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0009|     receipts attributable to the gaming impact tax imposed pursuant
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0010|     to the Gaming Impact Tax Act." 
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0011|          Section 7.  EFFECTIVE DATE.--The effective date of the
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0012|     provisions of this act is July 1, 1997.
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0013|                                  
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0014|          
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