SENATE BILL 938
48th legislature - STATE OF NEW MEXICO - first session, 2007
INTRODUCED BY
James G. Taylor
AN ACT
RELATING TO TAXATION; AUTHORIZING MUNICIPALITIES AND COUNTIES TO IMPOSE A GROSS RECEIPTS TAX FOR RECREATIONAL PURPOSES; PRESCRIBING ORDINANCE REQUIREMENTS; REQUIRING AN ELECTION FOR IMPOSITION OF THE MUNICIPAL OR COUNTY RECREATION GROSS RECEIPTS TAX; AUTHORIZING MUNICIPALITIES AND COUNTIES TO ISSUE BONDS PAYABLE FROM RECREATION GROSS RECEIPTS TAX REVENUE; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Municipal Local Option Gross Receipts Taxes Act is enacted to read:
"[NEW MATERIAL] MUNICIPAL RECREATION GROSS RECEIPTS TAX-- AUTHORITY TO IMPOSE RATE--ORDINANCE REQUIREMENTS--ELECTION.--
A. A 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. The rate of the tax shall not exceed one-fourth of one percent of the gross receipts of the person engaging in business and may be imposed in one-sixteenth of one percent increments by separate ordinances.
B. The tax imposed pursuant to Subsection A of this section may be referred to as the "municipal recreation gross receipts tax".
C. The governing body of a municipality, at the time of enacting an ordinance imposing the rate of the tax authorized in Subsection A of this section, shall dedicate the revenue for:
(1) acquiring, constructing, purchasing, equipping, furnishing, making additions to, renovating, rehabilitating, beautifying or otherwise improving public parks or public recreational buildings or facilities;
(2) operating, maintaining or staffing public parks or public recreational buildings or facilities;
(3) marketing, advertising, planning, coordinating, operating or professional services contracts related to amateur recreational or sporting programs or events held at public parks or public recreational buildings or facilities; or
(4) payment of gross receipts tax revenue bonds issued pursuant to Chapter 3, Article 31 NMSA 1978 for public parks or recreational purposes.
D. An ordinance imposing any increment of the municipal recreation gross receipts tax shall not go into effect until after an election is held and a majority of the voters in the municipality voting in the election votes in favor of imposing the tax. The governing body shall adopt a resolution calling for an election within ninety days of the date the ordinance is adopted on the question of imposing the tax. The question may be submitted to the voters as a separate question at a general election or at a special election called for that purpose by the governing body. A special election shall be called, conducted and canvassed in substantially the same manner as provided by law for general elections. In any election held, the ballot shall clearly state the purpose to which the revenue will be dedicated pursuant to this section. If a majority of the voters voting on the question approves the ordinance imposing the municipal recreation gross receipts tax, the ordinance shall become effective in accordance with the provisions of the Municipal Local Option Gross Receipts Taxes Act. If the question of imposing the municipal recreation gross receipts tax fails, the governing body shall not again propose the imposition of the tax for a period of one year from the date of the election.
E. A municipality that has imposed a municipal recreation gross receipts tax may issue revenue bonds pursuant to Chapter 3, Article 31 NMSA 1978 to pay for some or all of the cost of acquiring, constructing, purchasing, equipping, furnishing, making additions to, renovating, rehabilitating, beautifying or otherwise improving a public park or a public recreational building or facility. The bonds shall be secured by municipal recreation gross receipts tax revenue.
F. A municipality that has issued bonds pursuant to Subsection E of this section shall establish a "municipal recreation bonding fund" for deposit of municipal recreation gross receipts tax revenue and any revenue from an amateur recreational or sporting program or event held at a public park or a public recreational building or facility acquired, constructed or improved with revenue from the municipal recreation gross receipts tax. Money in the fund may be used to pay:
(1) payments of principal, interest or prior redemption premiums due in connection with, and any other charges pertaining to, the bonds, including any sinking fund or reserve fund required by the bond resolution;
(2) costs of operating, maintaining or staffing public parks or public recreational buildings or facilities, provided that no such costs shall be paid if there are current payments due pursuant to Paragraph (1) of this subsection;
(3) costs of marketing, advertising, planning, coordinating, operating or professional services contracts related to amateur recreational or sporting programs or events held at public parks or public recreational buildings or facilities, provided that no such costs shall be paid if there are current payments due pursuant to Paragraph (1) of this subsection; or
(4) costs of acquiring, constructing, purchasing, equipping, furnishing, making additions to, renovating, rehabilitating, beautifying or otherwise improving public parks or public recreational buildings or facilities, provided that no such costs shall be paid if there are current payments due pursuant to Paragraph (1) of this subsection.
G. At least ten percent of the revenue collected pursuant to a municipal recreation gross receipts tax shall be used to repair, renovate or operate existing municipal recreational facilities or parks, provided that no such costs shall be paid if there are current payments due pursuant to Paragraph (1) of Subsection F of this section.
H. Bonds issued pursuant to this section shall be payable solely from the municipal recreation bonding fund and do not create an obligation or indebtedness of the state or the municipality within the meaning of any constitutional provision. A breach of any contractual obligation incurred pursuant to this section shall not impose a pecuniary liability or charge upon the general credit or taxing power of the state or the municipality, and the bonds are not general obligations for which the state's or the municipality's full faith and credit is pledged.
I. The state pledges that any law authorizing the imposition of municipal recreation gross receipts tax shall not be amended or repealed or otherwise modified so as to impair the bonds to which the municipal recreation bonding fund is dedicated as provided in this section.
J. Nothing in this section shall prohibit public-private partnership projects in connection with public parks, public recreational buildings or facilities, sporting events or programs funded by the municipal recreation gross receipts tax."
Section 2. A new section of the County Local Option Gross Receipts Taxes Act is enacted to read:
"[NEW MATERIAL] COUNTY RECREATION GROSS RECEIPTS TAX-- AUTHORITY TO IMPOSE RATE--USE OF FUNDS--ELECTION.--
A. The majority of the members of the governing body of a county may enact an ordinance imposing an excise tax at a rate not to exceed one-fourth of one percent of the gross receipts of any person engaging in business in the county area for the privilege of engaging in business. The rate of the tax shall not exceed one-fourth of one percent of the gross receipts of the person engaging in business and may be imposed in one-sixteenth of one percent increments by separate ordinances.
B. The tax imposed pursuant to Subsection A of this section may be referred to as the "county recreation gross receipts tax".
C. The governing body, at the time of enacting an ordinance imposing a rate of tax authorized in Subsection A of this section, shall dedicate the revenue for:
(1) acquiring, constructing, purchasing, equipping, furnishing, making additions to, renovating, rehabilitating, beautifying or otherwise improving public parks or public recreational buildings or facilities;
(2) operating, maintaining or staffing public parks or public recreational buildings or facilities;
(3) marketing, advertising, planning, coordinating, operating or professional services contracts related to amateur recreational or sporting programs or events held at public parks or public recreational buildings or facilities; or
(4) payment of gross receipts tax revenue bonds issued pursuant to Chapter 4, Article 62 NMSA 1978.
D. An ordinance imposing the county recreation gross receipts tax shall not go into effect until after an election is held and a majority of the voters in the county area voting in the election votes in favor of imposing the tax. The governing body shall adopt a resolution calling for an election within ninety days of the date the ordinance is adopted on the question of imposing the tax. The question shall be submitted to the voters of the county area as a separate question at a general election or at a special election called for that purpose by the governing body. A special election shall be called, conducted and canvassed in substantially the same manner as provided by law for general elections. If a majority of the voters voting on the question approves the ordinance imposing the county recreation gross receipts tax, then the ordinance shall become effective in accordance with the provisions of the County Local Option Gross Receipts Taxes Act. If the question of imposing the county recreation gross receipts tax fails, the governing body shall not again propose the imposition of the tax for a period of one year from the date of the election.
E. A county that has imposed a county recreation gross receipts tax may issue revenue bonds pursuant to Chapter 4, Article 62 NMSA 1978 to pay for some or all of the cost of acquiring, constructing, purchasing, equipping, furnishing, making additions to, renovating, rehabilitating, beautifying or otherwise improving a public park or public recreational building or facility. The bonds shall be secured by county recreation gross receipts tax revenue.
F. A county that has issued bonds pursuant to Subsection E of this section shall establish a "county recreation bonding fund" for deposit of county recreation gross receipts tax revenue, and any revenue from an amateur recreational or sporting program or event held at a public park or a public recreational building or facility acquired, constructed or improved with revenue from the county recreation gross receipts tax. Money in the fund may be used to pay:
(1) payments of principal, interest or prior redemption premiums due in connection with, and any other charges pertaining to, the bonds, including any sinking fund or reserve fund required by the bond resolution;
(2) costs of operating, maintaining or staffing public parks or public recreational buildings or facilities, provided that no such costs shall be paid if there are current payments due pursuant to Paragraph (1) of this subsection;
(3) costs of marketing, advertising, planning, coordinating, operating or professional services contracts related to amateur recreational or sporting programs or events held at public parks or a public recreational buildings or facilities, provided that no such costs shall be paid if there are current payments due pursuant to Paragraph (1) of this subsection; or
(4) costs of acquiring, constructing, purchasing, equipping, furnishing, making additions to, renovating, rehabilitating, beautifying or otherwise improving public parks or public recreational buildings or facilities, provided that no such costs shall be paid if there are current payments due pursuant to Paragraph (1) of this subsection.
G. At least ten percent of the revenue collected pursuant to a county recreation gross receipts tax shall be used to repair, renovate or operate existing county recreational facilities or parks, provided that no such costs shall be paid if there are current payments due pursuant to Paragraph (1) of Subsection F of this section.
H. Bonds issued pursuant to this section shall be payable solely from the county recreation bonding fund and do not create an obligation or indebtedness of the state or county within the meaning of any constitutional provision. A breach of any contractual obligation incurred pursuant to this section shall not impose a pecuniary liability or charge upon the general credit or taxing power of the state or county, and the bonds are not general obligations for which the state's or county's full faith and credit is pledged.
I. The state pledges that any law authorizing the imposition of county recreation gross receipts tax shall not be amended or repealed or otherwise modified so as to impair the bonds to which the county recreation bonding fund is dedicated as provided in this section.
J. Nothing in this section shall prohibit public-private partnership projects in connection with public parks or recreational buildings or facilities, sporting events or programs funded by the county recreation gross receipts tax."
Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.
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