0001| HOUSE BILL 299 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| FRED LUNA | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO TAXATION; AMENDING THE COUNTY CORRECTIONAL | 0012| FACILITY GROSS RECEIPTS TAX; EXPANDING THE DEFINITION OF | 0013| "COUNTY"; PROVIDING FOR BONDING PURSUANT TO THE NEW MEXICO | 0014| FINANCE AUTHORITY ACT; DECLARING AN EMERGENCY. | 0015| | 0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0017| Section 1. A new section of the New Mexico Finance | 0018| Authority Act is enacted to read: | 0019| "[NEW MATERIAL] BONDS FOR COUNTY CORRECTIONAL FACILITY | 0020| LOANS.--The authority may issue bonds for a county seeking a | 0021| loan to develop a county correctional facility pursuant to the | 0022| County Correctional Facility Gross Receipts Tax Act only after | 0023| a majority of the registered qualified electors of the county | 0024| has voted to allow the county to impose a county correctional | 0025| facility gross receipts tax in the amount needed to repay | - 1 - 0001| bonds issued by the authority for the purpose of developing a | 0002| county correctional facility." | 0003| Section 2. Section 7-20F-2 NMSA 1978 (being Laws 1993, | 0004| Chapter 303, Section 2) is amended to read: | 0005| "7-20F-2. DEFINITIONS.--As used in the County | 0006| Correctional Facility Gross Receipts Tax Act: | 0007| A. "county" means: | 0008| (1) a class A county, the population of which | 0009| does not exceed one hundred fifty thousand people as | 0010| determined by the 1990 federal decennial census; ~~[or]~~ | 0011| (2) a class B county with a population of at | 0012| least fifty-seven thousand people but less than sixty | 0013| thousand ~~[according to]~~ as determined by the 1990 federal | 0014| decennial census; or | 0015| (3) a class B county with a population of at | 0016| least forty-five thousand people but less than forty-seven | 0017| thousand as determined by the 1990 federal decennial census; | 0018| B. "county board" means the board of county | 0019| commissioners of a county; | 0020| C. "department" means the taxation and revenue | 0021| department, the secretary of taxation and revenue or any | 0022| employee of the department exercising authority lawfully | 0023| delegated to that employee by the secretary; | 0024| D. "judicial-correctional facility" means a | 0025| facility for housing and use by judicial and corrections | - 2 - 0001| agencies, including housing for persons confined in county | 0002| corrections facilities; however, none of the facilities are | 0003| required to be located on the same or contiguous parcels of | 0004| land; | 0005| E. "municipality" means any incorporated city, | 0006| town or village, whether incorporated under general act, | 0007| special act or special charter; | 0008| F. "person" means an individual or any other | 0009| legal entity; | 0010| G. "pledged revenues" means the revenue, net | 0011| income or net revenues authorized to be pledged to the payment | 0012| of revenue bonds issued pursuant to the provisions of the | 0013| County Correctional Facility Gross Receipts Tax Act; | 0014| H. "refunding bond" means a refunding revenue bond | 0015| issued pursuant to the provisions of the County Correctional | 0016| Facility Gross Receipts Tax Act to refund revenue bonds issued | 0017| pursuant to the provisions of that act; and | 0018| I. "revenue bond" means a county correctional | 0019| facility gross receipts tax revenue bond." | 0020| Section 3. Section 7-20F-3 NMSA 1978 (being Laws 1993, | 0021| Chapter 303, Section 3, as amended) is amended to read: | 0022| "7-20F-3. COUNTY CORRECTIONAL FACILITY GROSS RECEIPTS | 0023| TAX--AUTHORITY TO IMPOSE--RATE--ORDINANCE REQUIREMENTS-- | 0024| REFERENDUM.-- | 0025| A. The majority of the members elected to the | - 3 - 0001| county board may enact an ordinance imposing on a county-wide | 0002| basis an excise tax not to exceed a rate of one-eighth of one | 0003| percent of the gross receipts of any person engaging in | 0004| business in the county, including all municipalities within | 0005| the county; provided that the voters of: ~~[the county]~~ | 0006| (1) a class A county described in Paragraph | 0007| (1) of Subsection A of Section 7-20F-2 NMSA 1978 or a class B | 0008| county described in Paragraph (2) of Subsection A of Section | 0009| 7-20F-2 NMSA 1978 have approved the issuance of general | 0010| obligation bonds of the county sufficient to pay at least | 0011| one-half of the costs of the construction and equipping of the | 0012| new county judicial-correctional facility for which the county | 0013| correctional facility gross receipts tax revenue is dedicated; | 0014| or | 0015| (2) a class B county described in Paragraph | 0016| (3) of Subsection A of Section 7-20F-2 NMSA 1978 have approved | 0017| the issuance of bonds by the New Mexico finance authority | 0018| sufficient to pay at least one-half of the costs of the | 0019| construction, equipping and furnishing of the new county | 0020| correctional facility for which the county correctional | 0021| facility gross receipts tax revenue is dedicated. | 0022| B. The tax imposed pursuant to Subsection A of | 0023| this section may be referred to as the "county correctional | 0024| facility gross receipts tax". The county correctional | 0025| facility gross receipts tax shall be imposed only once for the | - 4 - 0001| period necessary for payment of the principal and interest on | 0002| revenue bonds issued pursuant to the County Correctional | 0003| Facility Gross Receipts Tax Act, but the period shall not | 0004| exceed ten years from the effective date of the ordinance | 0005| imposing the tax. | 0006| ~~[B.]~~ C. Any ordinance imposing a county | 0007| correctional facility gross receipts tax pursuant to this | 0008| section shall: | 0009| (1) impose the tax in any number of | 0010| increments of one-sixteenth of one percent not to exceed an | 0011| aggregate amount of one-eighth of one percent; | 0012| (2) specify that the imposition of the tax | 0013| will begin on either July 1 or January 1, whichever occurs | 0014| first after the expiration of at least three months from the | 0015| date that the department is notified personally or by mail by | 0016| the county that imposition of the county correctional facility | 0017| gross receipts tax has been approved by a majority of the | 0018| registered voters in the county voting on the question; and | 0019| (3) dedicate the revenue from the county | 0020| correctional facility gross receipts tax for the purpose of | 0021| constructing, purchasing, furnishing, equipping, | 0022| rehabilitating, expanding or improving a judicial-correctional | 0023| or a county correctional facility or the grounds of a | 0024| judicial-correctional or county correctional facility, | 0025| including but not limited to acquiring and improving parking | - 5 - 0001| lots, landscaping or any combination of the foregoing or to | 0002| payment of principal and interest on revenue bonds or | 0003| refunding bonds issued pursuant to the provisions of the | 0004| County Correctional Facility Gross Receipts Tax Act. | 0005| ~~[C.]~~ D. An ordinance imposing a county | 0006| correctional facility gross receipts tax pursuant to this | 0007| section shall not become effective until after an election is | 0008| held and a simple majority of the qualified electors of the | 0009| county voting in the election votes in favor of imposing the | 0010| tax. | 0011| E. The governing body shall adopt a resolution | 0012| calling for an election within seventy-five days of the date | 0013| the ordinance is adopted on the question of imposing the tax, | 0014| and: | 0015| (1) in a class A county described in | 0016| Paragraph (1) of Subsection A of Section 7-20F-2 NMSA 1978 or | 0017| a class B county described in Paragraph (2) of Subsection A of | 0018| Section 7-20F-2 NMSA 1978, if a property tax at a rate | 0019| necessary to comply with the provisions of Subsection A of | 0020| this section has not been approved by the voters of the | 0021| county, the question submitted to the voters shall be the | 0022| question of imposing a county correctional facility gross | 0023| receipts tax and a property tax at a rate necessary for the | 0024| issuance of general obligation bonds of the county sufficient | 0025| to comply with the provisions of the County Correctional | - 6 - 0001| Facility Gross Receipts Tax Act; or | 0002| (2) in a class B county described in | 0003| Paragraph (3) of Subsection A of Section 7-20F-2 NMSA 1978, | 0004| the question to be submitted to the voters is "Shall a county | 0005| correctional facility gross receipts tax be imposed to pay for | 0006| the development of a county correctional facility and to repay | 0007| bonds that will be issued by the New Mexico finance authority | 0008| in an amount sufficient to pay at least one-half of the costs | 0009| of developing the new county correctional facility?". | 0010| F. The question shall be submitted to the voters | 0011| at any general election or special election called for that | 0012| purpose by the board. | 0013| G. The election upon the question shall be | 0014| called, held, conducted and canvassed in substantially the | 0015| same manner as may be provided by law for general elections. | 0016| H. If the question of imposing the | 0017| county correctional facility gross receipts tax and a property | 0018| tax, if the question includes a property tax, fails, the board | 0019| shall not again propose imposition of a county correctional | 0020| facility gross receipts tax for a period of one year after the | 0021| election. | 0022| ~~[D.]~~ I. Revenue produced by the imposition of | 0023| a county correctional facility gross receipts tax that is in | 0024| excess of the annual principal and interest due on bonds | 0025| secured by a pledge of the county correctional facility gross | - 7 - 0001| receipts tax may be accumulated in a debt service reserve | 0002| account until an amount equal to the maximum amount permitted | 0003| pursuant to the provisions of the United States treasury | 0004| regulations is accumulated in the debt service reserve | 0005| account. After the debt service reserve account requirements | 0006| have been met, the excess revenue shall be accumulated in an | 0007| extraordinary mandatory redemption fund and annually used to | 0008| redeem the bonds prior to their stated maturity date. | 0009| ~~[E.]~~ J. When all outstanding bonds have been | 0010| paid, whether from the debt service reserve, the redemption | 0011| fund or maturity, the ordinance shall be repealed if the | 0012| county correctional facility gross receipts tax revenue is no | 0013| longer required for the purposes for which it may be used | 0014| pursuant to the provisions of the County Correctional Facility | 0015| Gross Receipts Tax Act. | 0016| ~~[F.]~~ K. The repeal of an ordinance imposing a | 0017| county correctional facility gross receipts tax shall state | 0018| that the repeal shall be effective on January 1 or July 1, | 0019| whichever occurs first following the date the department is | 0020| notified personally or by mail by the county of the repeal." | 0021| Section 4. EMERGENCY.--It is necessary for the public | 0022| peace, health and safety that this act take effect | 0023| immediately. | 0024| |