SENATE BILL 240

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

Phil A. Griego

AN ACT

RELATING TO TAXATION; CREATING THE LIVE HORSE RACE GAMING TAX CREDIT.

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

     SECTION 1. A new section of the Gaming Control Act is enacted to read:

     "[NEW MATERIAL] LIVE HORSE RACE GAMING TAX CREDIT.--

          A. Beginning on January 1, 2016, a taxpayer that is a gaming operator licensee that is a racetrack may claim, and the taxation and revenue department may allow, a tax credit against the taxpayer's gaming tax liability pursuant to Section 60-2E-47 NMSA 1978, subject to the limitations of this section. The tax credit provided by this section may be referred to as the "live horse race gaming tax credit".

          B. The purpose of the live horse race gaming tax credit is to help offset the expense of live horse racing in New Mexico.

          C. The live horse race gaming tax credit shall not exceed:

                (1) twelve thousand five hundred dollars ($12,500) for each day that a live horse race is conducted at the licensee's premises during a fiscal year; provided that the gaming operator licensee paid gaming tax in an amount equal to ten million dollars ($10,000,000) or less in the fiscal year immediately prior to the fiscal year in which the taxpayer claims the tax credit; or

                (2) seven thousand five hundred dollars ($7,500) for each day that a live horse race is conducted at the licensee's premises during a fiscal year; provided that the gaming operator licensee paid gaming tax in an amount equal to more than ten million dollars ($10,000,000) in the fiscal year immediately prior to the fiscal year in which the taxpayer claims the tax credit.

          D. The aggregate amount of live horse race gaming tax credits provided pursuant to this section that the taxation and revenue department may allow in a fiscal year shall not exceed three million dollars ($3,000,000). If the aggregate amount of live horse race gaming tax credits claimed exceeds the limitation in this subsection, the available amount of tax credits shall be prorated among the taxpayers eligible for the live horse race gaming tax credit in that fiscal year. The maximum tax credit amount an individual taxpayer may claim shall not exceed seventy-five percent of the gaming tax liability due from that taxpayer in that fiscal year.

          E. The live horse race gaming tax credit may be claimed on a monthly basis against the gaming tax remitted to the state on a form provided by the taxation and revenue department. The tax credit claimed each month shall not exceed seventy-five percent of the taxpayer's monthly gaming tax liability. Any additional tax credit that may be allowed may be carried forward to any month of the fiscal year in which the taxpayer claims the tax credit; provided that the maximum tax credit amount an individual taxpayer may claim shall not exceed seventy-five percent of the gaming tax liability due from that taxpayer in the fiscal year.

          F. To be eligible for the live horse race gaming tax credit, the taxpayer shall, in the fiscal year prior to the fiscal year for which the tax credit is claimed, conduct no fewer days of live horse racing than were conducted in fiscal year 2014, as determined by the state racing commission, unless the taxpayer receives approval from the state racing commission for the taxpayer to vary the minimum number of live horse racing days.

          G. The state racing commission shall certify the eligibility of a taxpayer for purposes of obtaining a live horse race gaming tax credit and shall promulgate rules establishing procedures for certification. The rules shall ensure compliance with the provisions of this section. The state racing commission shall issue a dated certificate of eligibility containing the identifying information of the taxpayer that qualifies for the live horse race gaming tax credit. All certificates of eligibility issued pursuant to this subsection shall be sequentially numbered, and an account of all certificates issued or destroyed shall be maintained by the state racing commission. The taxation and revenue department shall audit the records of the live horse race gaming tax credit maintained by the state racing commission on a periodic basis to ensure effective administration of the tax credit and compliance with the Tax Administration Act and the provisions of this section.

          H. The taxpayer shall report to the state racing commission the number of live horse racing days conducted in a fiscal year and the increase from a prior fiscal year, the number of New Mexico breed races held and the number of New Mexico-bred horses that raced at the licensee's premises and any other information that the state racing commission requires to determine the eligibility of the taxpayer and the effectiveness of the live horse race gaming tax credit.

          I. To claim a live horse race gaming tax credit, the taxpayer shall provide to the taxation and revenue department the certificate of eligibility issued by the state racing commission to the taxpayer pursuant to Subsection G of this section.

          J. A taxpayer allowed a tax credit pursuant to this section shall report the amount of the tax credit to the taxation and revenue department in a manner required by the department.

          K. The taxation and revenue department, with the cooperation of the state racing commission, shall compile an annual report on the live horse race gaming tax credit that shall include the number of taxpayers approved by the department to receive the tax credit, the aggregate amount of tax credits approved and any other information necessary to evaluate the effectiveness of the tax credit. Beginning in 2017, the taxation and revenue department shall compile and present the annual reports to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the effectiveness and cost of the tax credit and whether the tax credit is performing the purposes for which it was created.

          L. The live horse race gaming tax credit shall be administered by the taxation and revenue department pursuant to the Tax Administration Act."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2016.