SB0265

SENATE BILL 265

54th legislature - STATE OF NEW MEXICO - second session, 2020

INTRODUCED BY

John M. Sapien

AN ACT

RELATING TO TRANSPORTATION; PROVIDING FOR AGREEMENTS FOR A RENTAL CAR COMPANY OR A PEER-TO-PEER VEHICLE SHARING PROGRAM TO OPERATE AT A MUNICIPAL AIRPORT FACILITY; DESIGNATING THE REPORTING LOCATION FOR GROSS RECEIPTS AND DEDUCTIONS OF A PEER-TO-PEER VEHICLE SHARING PROGRAM OR PEER-TO-PEER VEHICLE OWNER; AMENDING SECTIONS OF THE LEASED VEHICLE GROSS RECEIPTS TAX ACT; REPEALING THE LEASED VEHICLE SURCHARGE.

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

SECTION 1. Section 3-39-1 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-40-1) is amended to read:

"3-39-1. MUNICIPAL AIRPORT LAW.--Sections [14-40-1 through 14-40-13 New Mexico Statutes Annotated, 1953 Compilation] 3-39-1 through 3-39-15 NMSA 1978 may be cited as the "Municipal Airport Law"."

SECTION 2. Section 3-39-3 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-40-3, as amended) is repealed and a new Section 3-39-3 NMSA 1978 is enacted to read:

"3-39-3. [NEW MATERIAL] DEFINITIONS.--As used in the Municipal Airport Law:

A. "airport facility" includes a runway, taxiway, terminal, real estate, parking facility, hangar facility, maintenance facility for repair, construction and modification and any other facility related to aircraft or airports;

B. "bond" means any bond, note, temporary bond, interim certificate, negotiable instrument or any other evidence of indebtedness issued under the Municipal Airport Law;

C. "federal government" means the United States or any of its agencies;

D. "obligee" means any bondholder, trustee for any bondholders or lessor, or the bondholder's, trustee's or lessor's assignee, of property leased to the municipality for use in connection with an airport facility and the state or federal government when a party to a contract with the municipality by which aid is given to the municipality;

E. "peer-to-peer vehicle" means a personal motor vehicle that is available for use through a peer-to-peer vehicle sharing program for a sharing period of thirty days or less that is registered as a private passenger vehicle pursuant to the laws of this or another state;

F. "peer-to-peer vehicle owner" means the registered owner of a peer-to-peer vehicle made available for peer-to-peer vehicle sharing facilitated by a peer-to-peer vehicle sharing program;

G. "peer-to-peer vehicle sharing" means the authorized use of a peer-to-peer vehicle by an individual other than a peer-to-peer vehicle owner through a peer-to-peer vehicle sharing program;

H. "peer-to-peer vehicle sharing program" means a person or entity that connects peer-to-peer vehicle owners with drivers to facilitate the sharing of peer-to-peer vehicles for consideration. A peer-to-peer vehicle sharing program is not a transportation network company as defined in the Transportation Network Company Services Act;

I. "peer-to-peer vehicle sharing start time" means the time when a peer-to-peer vehicle becomes subject to the control of a driver at or after the time the reservation of peer-to-peer vehicle sharing is scheduled to begin as documented in the records of a peer-to-peer vehicle sharing program;

J. "rental car" means a motor vehicle that is intended to be rented or leased for a period of ninety consecutive days or less by a driver who is not required to possess a commercial driver's license to operate the motor vehicle and the motor vehicle is one of the following:

(1) a private passenger motor vehicle, including a passenger van, minivan or sports utility vehicle; or

(2) a cargo vehicle, including a cargo van, pickup truck or truck with a gross vehicle weight of less than twenty-six thousand pounds; and

K. "rental car company" means a person in the business of renting rental cars to the public, including a franchise. "Rental car company" does not include a peer-to-

peer vehicle owner who makes no more than three motor vehicles available for peer-to-peer vehicle sharing through a peer-to-peer vehicle sharing program, or combination of programs, during a twelve-month period."

SECTION 3. A new section of the Municipal Airport Law is enacted to read:

"[NEW MATERIAL] AGREEMENTS FOR A RENTAL CAR COMPANY OR A PEER-TO-PEER VEHICLE SHARING PROGRAM TO OPERATE AT A MUNICIPAL AIRPORT FACILITY.--

A. A peer-to-peer vehicle sharing program, a peer-to-peer vehicle owner or a rental car company, upon request of the governing body of a municipality operating an airport facility, shall enter into an agreement, which may be a concession agreement, prior to:

(1) listing, publishing information about or advertising a peer-to-peer vehicle or a rental car parked at or on an airport facility;

(2) facilitating the use of a peer-to-peer vehicle or a rental car to transport airport customers to or from airport facilities, regardless of whether that use is to be initiated or has a peer-to-peer vehicle sharing start time that occurs on or off of the airport facility; or

(3) promoting or marketing a peer-to-peer vehicle or a rental car to transport airport customers to or from the airport facility, regardless of whether that transportation is to be initiated or has a peer-to-peer vehicle sharing start time that occurs on or off of the airport facility.

B. The agreement described in Subsection A of this section shall set forth reasonable standards, rules, procedures and fees applicable to a peer-to-peer vehicle sharing program, peer-to-peer vehicle sharing or a rental car company and based on current standards, rules, procedures and fees at similarly sized airports and population areas in the United States.

C. If a peer-to-peer vehicle sharing program, a peer-to-peer vehicle owner or a rental car company fails or refuses to enter into an agreement described in Subsection A of this section after a request by the governing body of a municipality operating an airport facility or performs, participates in or undertakes any of the actions set forth in Subsection A of this section before entering into an agreement after a request to do so, the affected municipality may seek an injunction prohibiting operations at the airport facility and may seek damages against the peer-to-peer vehicle sharing program, peer-to-peer vehicle owner or rental car company."

SECTION 4. Section 7-1-14 NMSA 1978 (being Laws 1969, Chapter 145, Section 1, as amended) is amended to read:

"7-1-14. SECRETARY MAY DETERMINE WHERE CERTAIN GROSS RECEIPTS ARE TO BE REPORTED--PLACE OF BUSINESS FOR CONSTRUCTION PROJECTS AND CERTAIN REAL PROPERTY SALES--LOCATION WHERE GROSS RECEIPTS AND DEDUCTIONS FROM CERTAIN VEHICLE-USE SERVICES ARE TO BE REPORTED.--

A. By regulation, the secretary may require any person maintaining one or more places of business to report the person's taxable gross receipts and deductions for each municipality or county or area within an Indian reservation or pueblo grant in which the person maintains a place of business.

B. For persons engaged in the construction business, the place where the construction project is performed is a "place of business", and all receipts from that project are to be reported from that place of business.

C. The secretary may, by regulation, also require any person maintaining a business outside the boundaries of a municipality on land owned by that municipality to report the person's taxable gross receipts for that municipality.

D. For a person engaged in the business of selling real estate, the location of the real property sold is the "place of business", and all receipts from that sale are to be reported from that place of business.

E. The reporting location for gross receipts and deductions from a customer for services provided by a peer-to-peer vehicle owner or a peer-to-peer vehicle sharing program shall be the location where the customer begins the use of the peer-to-peer vehicle. As used in this subsection:

(1) "peer-to-peer vehicle" means a personal motor vehicle that is available for use through a peer-to-peer

vehicle sharing program for a sharing period of thirty days or less that is registered as a private passenger vehicle pursuant to the laws of this or another state;

(2) "peer-to-peer vehicle owner" means the registered owner of a peer-to-peer vehicle made available for peer-to-peer vehicle sharing facilitated by a peer-to-peer vehicle sharing program; and

(3) "peer-to-peer vehicle sharing program" means a person or entity that connects peer-to-peer vehicle owners with drivers to facilitate the sharing of peer-to-peer vehicles for consideration."

SECTION 5. That version of Section 7-1-14 NMSA 1978 (being Laws 2019, Chapter 270, Section 11) that is to become effective July 1, 2021 is amended to read:

"7-1-14. LOCATION WHERE CERTAIN GROSS RECEIPTS ARE TO BE REPORTED--LOCATION FOR TRANSACTIONS SUBJECT TO THE COMPENSATING TAX.--

A. Gross receipts and deductions required to be reported pursuant to the Gross Receipts and Compensating Tax Act or any act that imposes a state or local gross receipts or compensating tax shall be reported as follows:

(1) gross receipts and deductions from the sale or lease of tangible personal property or licenses and from the licensing of tangible personal property shall be reported to the location of delivery of that tangible personal property to the customer; provided that the reporting location for receipts from leasing a vehicle is the location where the customer first makes use of the vehicle;

(2) except as otherwise provided in this section, a seller of services shall report the seller's gross receipts and deductions as follows:

(a) professional services shall be reported to the seller's place of business;

(b) for a person engaged in the construction business, the location where the construction project is performed is the "place of business", and all gross receipts and deductions from that project are to be reported from that place of business;

(c) for a person engaged in the business of providing services with respect to the selling of real estate, the location of the real property is the "place of business", and all gross receipts and deductions from that sale are to be reported from that place of business; and

(d) services, other than those described in Subparagraphs (a) through (c) of this paragraph, are to be reported at the location where the service is performed;

(3) gross receipts and deductions from the sale, lease or granting of a license to use real property shall be reported to the location of the real property; [and]

(4) the reporting location for gross receipts and deductions from a customer for services provided by a transportation network company pursuant to the Transportation Network Company Services Act shall be the location where the customer enters the vehicle offered for a prearranged ride; and

(5) the reporting location for gross receipts and deductions from a customer for services provided by a peer-to-peer vehicle owner or a peer-to-peer vehicle sharing program shall be the location where the customer begins the use of the peer-to-peer vehicle. As used in this paragraph:

(a) "peer-to-peer vehicle" means a personal motor vehicle that is available for use through a peer-to-peer vehicle sharing program for a sharing period of thirty days or less that is registered as a private passenger vehicle pursuant to the laws of this or another state;

(b) "peer-to-peer vehicle owner" means the registered owner of a peer-to-peer vehicle made available for peer-to-peer vehicle sharing facilitated by a peer-to-peer

vehicle sharing program; and

(c) "peer-to-peer vehicle sharing program" means a person or entity that connects peer-to-peer vehicle owners with drivers to facilitate the sharing of peer-to-peer vehicles for consideration.

B. Consistent with this section and with intergovernmental agreements, the secretary may, by rule, provide for the reporting of gross receipts and deductions from transactions not otherwise specified in this section, including reporting gross receipts and deductions to locations:

(1) by taxpayers having more than one place of business; and

(2) for reporting tax imposed by taxing jurisdictions at the jurisdiction's location, including:

(a) outside a municipality;

(b) within an Indian reservation or pueblo grant;

(d) within any other taxing jurisdiction.

C. Values from transactions subject to the compensating tax shall be reported consistent with Subsections A and B of this section unless the taxpayer can demonstrate that the taxable use in New Mexico first occurred after the purchase, lease, license or other transaction giving rise to that value and that the first taxable use occurred in another location within the state.

D. The secretary shall develop and provide to taxpayers a location-rate database that sets out the tax rates applicable to locations within the state, by address, and sellers who properly rely on this database shall not be liable for any additional tax due to the use of an incorrect rate."

SECTION 6. Section 7-14A-4 NMSA 1978 (being Laws 1991, Chapter 197, Section 8, as amended) is amended to read:

"7-14A-4. PRESUMPTION OF TAXABILITY.--To prevent evasion of the leased vehicle gross receipts tax [and the leased vehicle surcharge] and to aid in [their] its administration, it is presumed that all receipts of a person engaging in business are subject to the leased vehicle gross receipts tax [and that all vehicles leased by that person are subject to the leased vehicle surcharge]."

SECTION 7. Section 7-14A-6 NMSA 1978 (being Laws 1991, Chapter 197, Section 10, as amended) is amended to read:

"7-14A-6. DATE PAYMENT DUE.--The tax [and the surcharge] imposed by the Leased Vehicle Gross Receipts Tax Act [are] is to be paid on or before the twenty-fifth day of the month following the month in which the taxable event occurs."

SECTION 8. Section 7-14A-11 NMSA 1978 (being Laws 1991, Chapter 197, Section 15, as amended) is amended to read:

"7-14A-11. ADMINISTRATION.--

A. The department shall interpret the provisions of the Leased Vehicle Gross Receipts Tax Act.

B. The department shall administer and enforce the collection of the leased vehicle gross receipts tax [and the leased vehicle surcharge] and the Tax Administration Act applies to the administration and enforcement of the tax [and the surcharge]."

SECTION 9. REPEAL.--Section 7-14A-3.1 NMSA 1978 (being Laws 1993, Chapter 359, Section 1, as amended) is repealed.

SECTION 10. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2020.

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