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AN ACT

RELATING TO SPECIAL DISTRICTS; CREATING A WATER AND SANITATION

GROSS RECEIPTS TAX; ENACTING SECTIONS OF THE NMSA 1978.

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

Section 1. A new section of the County Local Option

Gross Receipts Taxes Act is enacted to read:

"WATER AND SANITATION GROSS RECEIPTS TAX--AUTHORITY TO

IMPOSE--RATE--ELECTION--USE OF REVENUE.--

A. An excise tax imposed by a governing body

pursuant to this section may be referred to as the "water and

sanitation gross receipts tax". The water and sanitation

gross receipts tax shall be imposed by a governing body as set

forth in this section, contingent upon a majority of the

voters voting in an election on the question of whether to

impose a water and sanitation gross receipts tax voting in

favor of the imposition.

B. Upon receipt of a resolution adopted and

submitted by the board of directors of a water and sanitation

district that requests the governing body to impose a water

and sanitation gross receipts tax on behalf of the water and

sanitation district, a governing body shall enact an ordinance

imposing a water and sanitation gross receipts tax in that

water and sanitation district. The ordinance shall impose the

tax at a rate of one-fourth percent on a person engaging in

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business within the area of the county located within the

water and sanitation district for the privilege of engaging in

business within that water and sanitation district within the

county.

C. The governing body, at the time of enacting an

ordinance imposing a water and sanitation gross receipts tax

authorized pursuant to Subsection A of this section, shall

dedicate the revenue only for the operation of the water and

sanitation district for which the tax is imposed. The tax

shall be imposed for six years from the date on which the

water and sanitation gross receipts tax goes into effect.

D. Within sixty days of the date the ordinance is

adopted by the governing body, the governing body shall adopt

a resolution calling for an election on the question of

whether to impose a water and sanitation gross receipts tax.

The question shall be submitted to the voters of the water and

sanitation district requesting the county to impose the tax.

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 water and sanitation gross

receipts tax, then the ordinance shall become effective in

accordance with the provisions of the County Local Option

Gross Receipts Taxes Act on either January 1 or July 1

following the election approving the imposition of the tax.

If the question of imposing the water and sanitation gross

receipts tax fails, a resolution from the board of directors

of the water and sanitation district initiating the request to

the county to impose a water and sanitation gross receipts tax

may not again be submitted to the governing body for a period

of one year from the date of the election.

E. The proceeds from the water and sanitation

gross receipts tax shall be administered by the governing body

and disbursed by the county treasurer to the appropriate water

and sanitation district in amounts and for the purposes

authorized in this section and as set out in the resolution

submitted by the board of directors to the governing body. An

agreement shall be entered into between the water and

sanitation district and the governing body that sets out the

responsibilities of both parties regarding administration,

distribution and use of the revenue from the water and

sanitation gross receipts tax."

Section 2. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2007.

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