0001| . HOUSE BILL 275 | 0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, | 0003| 1996 | 0004| INTRODUCED BY | 0005| ROBERT A. PERLS | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO TAXATION; AUTHORIZING IMPOSITION OF A MUNICIPAL | 0013| TOBACCO PRODUCTS TAX FOR THE PURPOSE OF RAISING REVENUES FOR | 0014| PUBLIC SCHOOL CONSTRUCTION; ENACTING THE MUNICIPAL TOBACCO | 0015| PRODUCTS TAX ACT. | 0016| | 0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0018| Section l. SHORT TITLE.--This act may be cited as the | 0019| "Municipal Tobacco Products Tax Act". | 0020| Section 2. DEFINITIONS.--As used in the Municipal Tobacco | 0021| Products Tax Act: | 0022| A. "cigarette" means any roll of tobacco or any | 0023| substitute therefor wrapped in paper or any substance other than | 0024| tobacco; | 0025| B. "engaging in business" means carrying on or | 0001| causing to be carried on any activity with the purpose of direct | 0002| or indirect benefit; | 0003| C. "governing body" means the city council or city | 0004| commission of a city, the board of trustees of a town or village | 0005| or the board of county commissioners of an H class county; | 0006| D. "municipality" means any incorporated city, town | 0007| or village and H class county; | 0008| E. "person" means any individual or other legal | 0009| entity; | 0010| F. "price" means the total amount of money or the | 0011| reasonable value or other consideration or both paid to a | 0012| retailer for tobacco products; | 0013| G. "retailer" means any person engaging in business | 0014| who sells, offers for sale or possesses for the purpose of | 0015| selling cigarettes at retail; and | 0016| H. "tobacco product" means any product, including | 0017| cigarettes, made from or containing tobacco. | 0018| Section 3. IMPOSITION OF MUNICIPAL TOBACCO PRODUCTS | 0019| TAX--RATE--ELECTION REQUIRED.-- | 0020| A. The majority of the members of the governing body | 0021| of a municipality may enact an ordinance imposing an excise tax | 0022| on the sale of tobacco products by a retailer within the | 0023| boundaries of the municipality at a rate not to exceed thirty | 0024| percent of the price paid for the tobacco products upon which | 0025| the tax imposed by this subsection has not been paid. The tax | 0001| may be imposed in increments of one percent. | 0002| B. The tax imposed by this section may be referred | 0003| to as the "municipal tobacco products tax" and is in addition to | 0004| the cigarette tax imposed pursuant to the Cigarette Tax Act and | 0005| the tobacco products tax imposed pursuant to the Tobacco | 0006| Products Tax Act. | 0007| C. The ordinance imposing the municipal tobacco | 0008| products tax or any increment of the tax shall not go into | 0009| effect until after the governing body submits the question of | 0010| imposing the tax to the voters in the municipality and a | 0011| majority of the voters voting on the question votes in favor of | 0012| imposing the municipal tobacco products tax. | 0013| D. The governing body shall hold the election on the | 0014| question of imposing the municipal tobacco products tax within | 0015| sixty days after the adoption of the ordinance. The question | 0016| may be submitted to the voters at any regular or special | 0017| election or at any special election called for that purpose by | 0018| the governing body. Any special election shall be called, | 0019| conducted and canvassed as provided for special municipal | 0020| elections in the Municipal Election Code. If a majority of | 0021| voters voting on the question votes in favor of adoption of the | 0022| ordinance, the municipal tobacco products tax or increment of | 0023| the tax shall be imposed. If the question of imposing a | 0024| municipal tobacco products tax fails, the governing body shall | 0025| not again adopt an ordinance imposing a municipal tobacco | 0001| products tax or increment of the tax for a period of one year | 0002| after the election. | 0003| E. Upon approval by the voters of the municipality | 0004| of imposition of a municipal tobacco products tax, the governing | 0005| body shall submit a certified copy of the ordinance to the | 0006| taxation and revenue department. | 0007| Section 4. REGISTRATION REQUIRED.--Every retailer engaging | 0008| in business within the boundaries of a municipality that imposes | 0009| a municipal tobacco products tax shall register with the | 0010| municipality as a retailer. | 0011| Section 5. COLLECTION OF MUNICIPAL TOBACCO PRODUCTS | 0012| TAX--DATE TAX DUE.-- | 0013| A. The municipality shall collect the municipal | 0014| tobacco products tax imposed by the Municipal Tobacco Products | 0015| Tax Act. | 0016| B. Every retailer subject to the municipal tobacco | 0017| products tax shall file a tax return on forms provided by and | 0018| with such information as may be required by the municipality. | 0019| The municipal tobacco products tax shall be due on or before the | 0020| twenty-fifth day of the month following the month in which the | 0021| tobacco products are sold at retail within the boundaries of the | 0022| municipality. | 0023| Section 6. USE OF MUNICIPAL TOBACCO PRODUCTS TAX--DISTRIBUTION TO SCHOOL DISTRICTS.-- | 0024| A. The net receipts from the municipal tobacco | 0025| products tax shall be used for the design, construction, | 0001| remodeling, renovation, equipping or furnishing of public | 0002| schools. To carry out this purpose, the municipality shall | 0003| distribute the net receipts from the tax at least quarterly to | 0004| the school district within the boundaries of the municipality or | 0005| in equal amounts to the school districts, if there are more than | 0006| one, within the municipality. | 0007| B. The municipality may retain an amount not to | 0008| exceed five percent of the proceeds from the municipal tobacco | 0009| products tax as an administrative fee. | 0010| C. The local school board of each school district | 0011| receiving municipal tobacco products tax proceeds shall report | 0012| annually to the governing body of the municipality on the public | 0013| school projects funded with the proceeds. | 0014| Section 7. ENFORCEMENT OF MUNICIPAL TOBACCO PRODUCTS | 0015| TAX.--To enforce the provisions of the Municipal Tobacco | 0016| Products Tax Act and prevent evasion of the municipal tobacco | 0017| products tax, the municipality shall require that all tobacco | 0018| products sold by any retailer within the boundaries of the | 0019| municipality bear a municipal stamp. Each person who sells | 0020| tobacco products to a retailer for resale within the boundaries | 0021| of the municipality shall affix a municipal stamp to each | 0022| package or container of tobacco products sold to the retailer | 0023| for resale and report to the governing body of the municipality | 0024| the quantities of municipal-stamped tobacco products sold to | 0025| each retailer for resale in the municipality. | 0001| Section 8. EXEMPTION.-- | 0002| A. Exempted from the municipal tobacco products tax | 0003| are sales of tobacco products: | 0004| (l) to the United States or any agency or | 0005| instrumentality thereof or the state of New Mexico or any | 0006| political subdivision thereof; | 0007| (2) to the governing body or to any enrolled | 0008| tribal member licensed by the governing body of any Indian | 0009| nation, tribe or pueblo for use or sale on that reservation or | 0010| pueblo grant; and | 0011| (3) sales that the state is prohibited from | 0012| taxing by a provision of the United States constitution or the | 0013| constitution of New Mexico. | 0014| B. As used in this section, "agency or | 0015| instrumentality" does not include persons who are agents or | 0016| instrumentalities of the United States for a particular purpose | 0017| or only when acting in a particular capacity or corporate | 0018| agencies or instrumentalities. | 0019| Section 9. PENALTIES.-- | 0020| A. The governing body of a municipality imposing a | 0021| municipal tobacco products tax may provide by ordinance for | 0022| penalties not exceeding ninety days in jail or a fine of three | 0023| hundred dollars ($300) for failure to pay the municipal tobacco | 0024| products tax due, to remit the proceeds of the tax to the | 0025| municipality or to account for the tobacco products subject to | 0001| the tax and the tax proceeds as required by the municipality. | 0002| B. The governing body of the municipality may | 0003| provide by ordinance that a retailer is liable for the payment | 0004| of the proceeds of the municipal tobacco products tax that the | 0005| retailer failed to remit to the municipality and may provide for | 0006| a civil penalty for any such failure in an amount not exceeding | 0007| ten percent of the tax due but not remitted to the municipality | 0008| but in an amount not less than one hundred dollars ($l00). | 0009| C. The municipality may bring an action in district | 0010| court for the collection of any amount due, including without | 0011| limitation penalties on that amount, interest on the unpaid | 0012| balance at a rate not exceeding one percent a month, the costs | 0013| of collection and reasonable attorneys' fees incurred in | 0014| connection with the action. | 0015|  State of New Mexico | 0016| House of Representatives | 0017| | 0018| FORTY-SECOND LEGISLATURE | 0019| SECOND SESSION, 1996 | 0020| | 0021| | 0022| February 7, 1996 | 0023| | 0024| | 0025| Mr. Speaker: | 0001| | 0002| Your GOVERNMENT AND URBAN AFFAIRS COMMITTEE, to | 0003| whom has been referred | 0004| | 0005| HOUSE BILL 275 | 0006| | 0007| has had it under consideration and reports same with | 0008| recommendation that it DO NOT PASS, and thence referred to | 0009| the BUSINESS AND INDUSTRY COMMITTEE. | 0010| | 0011| Respectfully submitted, | 0012| | 0013| | 0014| | 0015| | 0016| Lynda M. Lovejoy, Chairwoman | 0017| | 0018| | 0019| Adopted Not Adopted | 0020| | 0021| (Chief Clerk) (Chief Clerk) | 0022| | 0023| Date | 0024| | 0025| The roll call vote was 6 For 2 Against | 0001| Yes: 6 | 0002| No: Pederson, Perls | 0003| Excused: Macko, Roberts, Wallace | 0004| Absent: None | 0005| | 0006| | 0007| | 0008| | 0009| H0275GU1 |