0001| HOUSE BILL 534
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0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003| 1996
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0004| INTRODUCED BY
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0005| BEN LUJAN
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0006|
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0007|
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0008|
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0009|
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0010|
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0011| AN ACT
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0012| RELATING TO OCCUPANCY TAX REVENUES; CHANGING AND CLARIFYING THE
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0013| PURPOSES FOR WHICH THE REVENUES FROM THE OCCUPANCY TAX IMPOSED
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0014| PURSUANT TO THE LODGERS' TAX ACT MAY BE USED; CHANGING CERTAIN
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0015| AUDIT AND REPORTING REQUIREMENTS; AMENDING AND ENACTING SECTIONS
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0016| OF THE NMSA 1978.
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0017|
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0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019| Section 1. Section 3-38-13 NMSA 1978 (being Laws 1969,
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0020| Chapter 199, Section 1) is amended to read:
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0021| "3-38-13. SHORT TITLE.--[This act] Sections 3-38-13
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0022| through 3-38-24 NMSA 1978 may be cited as the "Lodgers' Tax
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0023| Act"."
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0024| Section 2. Section 3-38-14 NMSA 1978 (being Laws 1969,
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0025| Chapter 199, Section 2) is amended to read:
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0001| "3-38-14. DEFINITIONS.--As used in the Lodgers' Tax Act:
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0002| A. "gross taxable rent" means the total amount of
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0003| rent paid for lodging, not including the state gross receipts
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0004| tax or local sales taxes;
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0005| B. "lodging" means the transaction of furnishing
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0006| rooms or other [accomodations] accommodations by a vendor to
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0007| a vendee who for rent uses, possesses or has the right to use or
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0008| possess any room or rooms or other units of accommodations in or
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0009| at a taxable premises;
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0010| C. "lodgings" means the rooms or other
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0011| accommodations furnished by a vendor to a vendee by a taxable
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0012| service of lodgings;
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0013| D. "occupancy tax" means the tax on lodging
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0014| authorized by the Lodgers' Tax Act;
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0015| E. "person" means a corporation, firm, other body
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0016| corporate, partnership, association or individual. "Person"
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0017| includes an executor, administrator, trustee, receiver or other
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0018| representative appointed according to law and acting in a
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0019| representative capacity. [but] "Person" does not include the
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0020| United States of America, the state of New Mexico, any
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0021| corporation, department, instrumentality or agency of the
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0022| federal government or the state government or any political
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0023| subdivision of the state;
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0024| F. "rent" means the consideration received by a
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0025| vendor in money, credits, property or other consideration valued
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0001| in money for lodgings subject to an occupancy tax authorized in
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0002| the Lodgers' Tax Act;
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0003| G. "taxable premises" means a hotel, apartment,
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0004| apartment hotel, apartment house, lodge, lodging house, rooming
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0005| house, motor hotel, guest house, guest ranch, ranch resort,
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0006| guest resort, mobile home, motor court, auto court, auto camp,
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0007| trailer court, trailer camp, trailer park, tourist camp, cabin
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0008| or other premises used for lodging;
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0009| H. "tourist" means a person who travels for the
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0010| purpose of business, pleasure or culture to a municipality or
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0011| county imposing an occupancy tax;
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0012| I. "tourist-related events" means events that are
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0013| planned for, promoted to and attended by tourists;
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0014| J. "tourist-related facilities and attractions"
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0015| means facilities and attractions that are intended to be used by
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0016| or visited by tourists;
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0017| K. "tourist-related transportation systems" means
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0018| transportation systems that provide transportation for tourists
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0019| to and from tourist-related facilities, attractions and
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0020| events;
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0021| [H.] L. "vendee" means a natural person to whom
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0022| lodgings are furnished in the exercise of the taxable service of
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0023| lodging; and
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0024| [I.] M. "vendor" means a person furnishing
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0025| lodgings in the exercise of the taxable service of lodging."
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0001| Section 3. Section 3-38-15 NMSA 1978 (being Laws 1969,
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0002| Chapter 199, Section 3, as amended) is amended to read:
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0003| "3-38-15. AUTHORIZATION OF TAX--LIMITATIONS ON USE OF
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0004| PROCEEDS.--
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0005| A. A municipality may impose by ordinance an
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0006| occupancy tax for revenues on lodging within the municipality,
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0007| and the board of county commissioners of a county may impose by
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0008| ordinance an occupancy tax for revenues on lodging within that
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0009| part of the county outside of the incorporated limits of a
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0010| municipality.
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0011| B. The occupancy tax shall not exceed five percent
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0012| of the gross taxable rent.
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0013| C. Every vendor who is furnishing any lodgings
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0014| within a municipality or county is exercising a taxable
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0015| privilege.
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0016| [D. A municipality or county imposing an occupancy
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tax of no more than two percent shall use not less than one-fourth of the proceeds of such tax for the purpose of
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advertising, publicizing and promoting facilities authorized in
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Section 3-38-21 NMSA 1978 and tourist attractions.
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E. Subject to the limitations of Subsection F of
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this section, a municipality or county imposing an occupancy tax
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of more than two percent shall use not less than one-half of the
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proceeds derived from the first three percent of such tax for
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the purpose of advertising, publicizing and promoting facilities
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authorized in Section 3-38-21 NMSA 1978 and tourist attractions.
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A municipality or county imposing an occupancy tax of more than
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three percent shall use all of the proceeds derived from the
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portion of the tax in excess of three percent in any manner
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authorized in Section 3-38-21 NMSA 1978.]
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0005| D. The following portions of the proceeds from the
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0006| occupancy tax shall be used only for advertising, publicizing
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0007| and promoting tourist-related attractions, facilities and
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0008| events:
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0009| (1) if the municipality or county imposes an
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0010| occupancy tax of no more than two percent, not less than one-fourth of the proceeds shall be used for those purposes;
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0011| (2) if the occupancy tax imposed is more than
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0012| two percent and the municipality is not located in a class A
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0013| county or the county is not a class A county, not less than one-half of the proceeds from the first three percent of the tax and
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0014| not less than one-fourth of the proceeds from the tax in excess
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0015| of three percent shall be used for those purposes; and
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0016| (3) if the occupancy tax imposed is more than
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0017| two percent and the municipality is located in a class A county
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0018| or the county is a class A county, not less than one-half of the
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0019| proceeds from the tax shall be used for those purposes.
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0020| E. The proceeds from the occupancy tax in excess of
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0021| the amount required to be used for advertising, publicizing and
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0022| promoting tourist-related attractions, facilities and events may
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0023| be used for any purpose authorized in Section 3-38-21 NMSA
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0024| 1978.
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0025| F. The proceeds from the occupancy tax that are
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0001| required to be used to advertise, publicize and promote tourist-related attractions, facilities and events shall be used within
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0002| two years of the close of the fiscal year in which they were
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0003| collected and shall not be accumulated beyond that date or used
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0004| for any other purpose.
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0005| G. Notwithstanding the provisions of Paragraph (2)
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0006| of Subsection D of this section, any use by a municipality or
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0007| county of occupancy tax proceeds on January 1, 1996 may continue
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0008| to be so used after July 1, 1996 in accordance with the
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0009| provisions of this section and Section 3-38-21 NMSA 1978 as they
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0010| were in effect prior to July 1, 1996; provided, any change in
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0011| the use of those tax proceeds after July 1, 1996 is subject to
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0012| the limitations of that paragraph.
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0013| [F.] H. Notwithstanding the provisions of
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0014| Paragraph (2) of Subsection [E] D of this section, the
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0015| payment of principal and interest on outstanding bonds issued
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0016| prior to [July 1, 1977] January 1, 1996 pursuant to Section
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0017| 3-38-23 or
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0018| 3-38-24 NMSA 1978 shall be made in accordance with the
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0019| retirement schedules of the bonds established at the time of
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0020| issuance. The amount of expenditures required under Paragraph
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0021| (2) of Subsection [E] D of this section shall be reduced
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0022| each year, if necessary, to make the required payments of
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0023| principal and interest of all outstanding bonds issued prior to
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0024| [July 1, 1977] January 1, 1996."
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0025| Section 4. Section 3-38-17.1 NMSA 1978 (being Laws 1992,
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0001| Chapter 12, Section 2) is amended to read:
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0002| "3-38-17.1. AUDIT OF VENDORS.--The governing body of any
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0003| municipality or county collecting over [fifty thousand dollars
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($50,000)] two hundred fifty thousand dollars ($250,000) in
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0005| occupancy tax proceeds shall select for annual random audits one
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0006| or more vendors to verify the amount of gross rent subject to
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0007| the occupancy tax and to ensure that the full amount of
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0008| occupancy tax on that rent is collected. The governing body of
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0009| any municipality or county collecting less than [fifty thousand
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dollars ($50,000)] two hundred fifty thousand dollars
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0011| ($250,000) in receipts, per annum, of occupancy tax proceeds
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0012| shall conduct random audits to verify full payment of occupancy
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0013| tax receipts. Copies of audits completed shall be filed
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0014| annually with the local government division of the department of
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0015| finance and administration."
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0016| Section 5. A new section of the Lodgers' Tax Act, Section
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0017| 3-38-17.2 NMSA 1978, is enacted to read:
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0018| "3-38-17.2. [NEW MATERIAL] FINANCIAL REPORTING.--
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0019| A. The governing body of any municipality or county
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0020| imposing and collecting an occupancy tax shall furnish to the
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0021| advisory board that portion of any proposed budget, report or
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0022| audit filed or received by the governing body pursuant to either
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0023| Chapter 6, Article 6 NMSA 1978 or the Audit Act that relates to
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0024| the expenditure of occupancy tax funds within ten days of the
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0025| filing or receipt of such proposed budget, report or audit by
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0001| the local governing body.
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0002| B. The governing body of any municipality or county
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0003| imposing and collecting an occupancy tax shall report to the
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0004| local government division of the department of finance and
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0005| administration on a quarterly basis any expenditure of occupancy
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0006| tax funds pursuant to Sections 3-38-15 and 3-38-21 NMSA 1978 and
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0007| shall furnish a copy of this report to the advisory board when
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0008| it is filed with the division."
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0009| Section 6. A new section of the Lodgers' Tax Act, Section
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0010| 3-38-17.3 NMSA 1978, is enacted to read:
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0011| "3-38-17.3. [NEW MATERIAL] ENFORCEMENT.--
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0012| A. An action to enforce the Lodgers' Tax Act may be
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0013| brought by:
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0014| (1) the attorney general or the district
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0015| attorney in the county of jurisdiction; or
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0016| (2) a vendor who is collecting the proceeds of
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0017| an occupancy tax in the county of jurisdiction.
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0018| B. A district court may issue a writ of mandamus or
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0019| order an injunction or other appropriate remedy to enforce the
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0020| provisions of the Lodgers' Tax Act.
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0021| C. The court shall award costs and reasonable
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0022| attorneys' fees to the prevailing party in a court action to
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0023| enforce the provisions of the Lodgers' Tax Act."
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0024| Section 7. Section 3-38-21 NMSA 1978 (being Laws 1969,
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0025| Chapter 199, Section 9, as amended) is amended to read:
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0001| "3-38-21. [USE] ELIGIBLE USES OF TAX PROCEEDS.--Subject to the limitations contained in Section 3-38-15 NMSA
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0002| 1978, a municipality or county imposing an occupancy tax may
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0003| use the proceeds [thereof] from the tax to defray costs of:
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0004| A. collecting and otherwise administering the tax,
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0005| [B. establishing and operating, constructing,
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purchasing, otherwise acquiring, reconstructing, extending,
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bettering or otherwise improving fairgrounds, exposition
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buildings, fieldhouses, auditoriums, welcome centers, tourist
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information centers, museums, performing arts facilities in
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operation prior to January 1, 1989, convention halls or other
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convention facilities of the municipality, of the county within
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which the municipality is located or of the county and acquiring
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improvements incidental thereto;
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C. equipping and furnishing such facilities, as
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specified in Subsection B of this section, of the municipality
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or county;
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D. acquiring a suitable site, grounds or other real
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property or any interest therein for such facilities of the
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municipality or county] including the performance of audits
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0020| required by the Lodgers' Tax Act pursuant to guidelines issued
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0021| by the department of finance and administration;
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0022| B. establishing, operating, purchasing,
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0023| constructing, otherwise acquiring, reconstructing, extending,
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0024| improving, equipping, furnishing or acquiring real property or
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0025| any interest in real property for the site or grounds for
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0001| tourist-related facilities, attractions or transportation
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0002| systems of the municipality, the county in which the
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0003| municipality is located or the county;
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0004| [E.] C. the principal of and interest on any
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0005| prior redemption premiums due in connection with and any other
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0006| charges pertaining to revenue bonds authorized by Section
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0007| 3-38-23 or
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0008| 3-38-24 NMSA 1978;
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0009| [F.] D. advertising, publicizing and promoting
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0010| [such] tourist-related attractions, facilities and events
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0011| of the municipality or county and tourist facilities or
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0012| attractions within the area; [except that a municipality
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located in a class A county or a class A county imposing an
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occupancy tax of more than two percent shall use not less than
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one-half of the proceeds derived from the tax for the purposes
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of this subsection; provided that this use of the proceeds of
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the occupancy tax shall not affect the payment of principal and
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interest on outstanding bonds issued prior to July 1, 1977
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pursuant to Section 3-38-23 or 3-38-24 NMSA 1978 which shall be
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made in accordance with the retirement schedules of the bonds
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established at the time of issuance. The amount of expenditures
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required by this subsection shall be reduced each year, if
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necessary, to make the required payments of principal and
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interest of all outstanding bonds issued prior to July 1, 1977;
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G. provision of public transportation within a
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three-mile area of a ski lift facility, provided such a ski lift
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facility originates inside the boundaries or within three
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hundred feet of the boundaries of a municipality;
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H. the operation, maintenance and capital costs
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associated with a public transportation system serving the ski
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area and other tourist areas within a nineteen-mile radius of a
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town that has a population of more than four thousand but less
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than four thousand five hundred according to the 1990 federal
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decennial census; or]
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0010| E. providing police and fire protection and
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0011| sanitation service for tourist-related events, facilities and
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0012| attractions located in the respective municipality or county;
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0013| or
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0014| [I.] F. any combination of the foregoing
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0015| purposes or transactions stated in this section, but for no
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0016| other municipal or county purpose."
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0017| Section 8. A new section of the Lodgers' Tax Act, Section
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0018| 3-38-21.1 NMSA 1978, is enacted to read:
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0019| "3-38-21.1. [NEW MATERIAL] CONTRACTING FOR SERVICES.--
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0020| A. The governing body of a municipality or county
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0021| may contract for the management of programs and activities
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0022| funded with revenue from the tax authorized in Section 3-38-15
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0023| NMSA 1978. The governing body shall require periodic reports to
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0024| the governing body, at least quarterly, listing the expenditures
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0025| for those periods. Within ten days of receiving the reports,
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0001| the governing body shall furnish copies of them to the advisory
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0002| board. Funds provided to the contracting person or governmental
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0003| agency shall be maintained in a separate account established for
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0004| that purpose and shall not be commingled with any other money.
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0005| B. A person or governmental agency with whom a
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0006| municipality contracts under this section to conduct an activity
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0007| authorized by Section 3-38-21 NMSA 1978 shall maintain complete
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0008| and accurate financial records of each expenditure of the tax
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0009| revenue made and upon request of the governing body of the
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0010| municipality or county shall make such records available for
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0011| inspection.
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0012| C. The occupancy tax revenue spent for a purpose
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0013| authorized by the Lodgers' Tax Act may be spent for day-to-day
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0014| operations, supplies, salaries, office rental, travel expenses
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0015| and other administrative costs only if those administrative
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0016| costs are incurred directly for that purpose.
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0017| D. A person or governmental agency with whom a local
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0018| governmental body contracts under this section may subcontract
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0019| with the approval of the governing body of the municipality or
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0020| county. A subcontractor shall be subject to the same terms and
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0021| conditions as the contractor regarding separate financial
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0022| accounts, periodic reports and inspection of records."
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0023| Section 9. Section 3-38-22 NMSA 1978 (being Laws 1977,
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0024| Chapter 294, Section 2) is amended to read:
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0025| "3-38-22. ADVISORY BOARDS CREATED--DUTIES.--
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0001| A. The mayor of every municipality [which] that
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0002| imposes an occupancy tax [under Sections 14-37-14 through
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14-37-24 NMSA 1953] pursuant to the Lodgers' Tax Act shall
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0004| appoint [an advisory board of five residents of the
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municipality; two of whom shall represent the lodging industry,
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two of whom are directly involved in tourist-related industries
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and one member at large who shall represent the general public]
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0008| a five-member advisory board that consists of two members who
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0009| are owners or operators of lodgings subject to the occupancy tax
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0010| within the municipality, two members who are owners or operators
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0011| of industries located within the municipality that primarily
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0012| provide services or products to tourists and one member who is a
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0013| resident of the municipality and represents the general public.
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0014| B. The chairman of every county commission [which]
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0015| that imposes an occupancy tax [under Sections 14-37-14
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through 14-37-24 NMSA 1953] pursuant to the Lodgers' Tax Act
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0017| shall appoint [an advisory board of five residents of the
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county; two of whom shall represent the lodging industry, two of
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whom are directly involved in tourist-related industries and one
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member at large who shall represent the general public] a
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0021| five-member advisory board that consists of two members who are
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0022| owners or operators of lodgings subject to the occupancy tax
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0023| within the unincorporated area of the county, two members who
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0024| are owners or operators of industries located within the
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0025| unincorporated area of the county that primarily provide
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0001| services or products to tourists and one member who is a
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0002| resident of the unincorporated area of the county who represents
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0003| the general public.
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0004| C. Members of the boards created under Subsections A
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0005| and B of this section shall serve at the pleasure of the
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0006| respective appointing authorities. The boards shall advise the
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0007| respective governing bodies on the expenditure of funds
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0008| authorized by Section [14-37-16 NMSA 1953] 3-38-15 NMSA 1978
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0009| for advertising, publicizing and promoting tourist attractions
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0010| and facilities in the respective counties and municipalities.
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0011| D. The advisory board shall submit to the mayor and
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0012| council or county commission recommendations for the
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0013| expenditures of funds authorized pursuant to the Lodgers' Tax
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0014| Act for advertising, publicizing and promoting tourist-related
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0015| attractions, facilities and events in the respective counties
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0016| and municipalities."
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0017| Section 10. Section 3-38-23 NMSA 1978 (being Laws 1969,
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0018| Chapter 199, Section 10, as amended) is amended to read:
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0019| "3-38-23. REVENUE BONDS.--
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0020| A. Revenue bonds may be issued at any time or from
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0021| time to time by a municipality or county to defray wholly or in
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0022| part the costs of any one, all or any combination of purposes
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0023| authorized in Subsections B through E of Section 3-38-21 NMSA
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0024| 1978.
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0025| B. The revenue bonds may be payable from and such
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0001| payment may be secured by a pledge of and lien on the revenues
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0002| derived from:
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0003| (1) the proceeds of the occupancy tax of the
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0004| municipality or county after the deduction of those amounts
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0005| required to be expended pursuant to Subsections D and E of
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0006| Section 3-38-15 NMSA 1978 and the administration costs
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0007| pertaining to the tax in an amount not to exceed ten percent of
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0008| the [gross taxable rent] occupancy tax receipts collected by
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0009| the municipality or county in any fiscal year, excluding from
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0010| the computation of such costs the administration costs
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0011| ultimately recovered from delinquent vendors by civil action as
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0012| penalties, costs of collection and attorneys' fees but not as
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0013| interest on unpaid principal;
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0014| (2) the [recreational facilities] tourist-related facilities, attractions or transportation systems to
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0015| which the bonds pertain, after provision is made for the payment
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0016| of the operation and maintenance expenses of such facilities,
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0017| attractions or transportation systems; or
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0018| (3) a combination of such net revenues from
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0019| both sources designated in Paragraphs (1) and (2) of this
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0020| subsection.
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0021| C. The bonds shall bear interest at a rate or rates
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0022| as authorized in the Public Securities Act, and the first
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0023| interest payment may be for any period authorized in the Public
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0024| Securities Act.
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0025| D. Except as otherwise provided in the Lodgers' Tax
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0001| Act, revenue bonds authorized in the Lodgers' Tax Act shall be
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0002| issued in accordance with the provisions of Sections 3-31-2
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0003| through 3-31-6 NMSA 1978."
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0004| Section 11. A new section of Chapter 6, Article 6 NMSA
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0005| 1978 is enacted to read:
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0006| "[NEW MATERIAL] LOCAL GOVERNMENT DIVISION--ADDITIONAL
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0007| DUTIES--OCCUPANCY TAX QUARTERLY REPORTS.--The local government
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0008| division of the department of finance and administration shall
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0009| promulgate rules and regulations that require the governing body
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0010| of any municipality or county imposing and collecting an
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0011| occupancy tax pursuant to the Lodgers' Tax Act to report to the
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0012| division on a quarterly basis any expenditure of occupancy tax
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0013| funds pursuant to Sections 3-38-15 and 3-38-21 NMSA 1978."
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0014| Section 12. EFFECTIVE DATE.--The effective date of the
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0015| provisions of this act is July 1, 1996.
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0016| State of New Mexico
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0017| House of Representatives
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0018|
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0019| FORTY-SECOND LEGISLATURE
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0020| SECOND SESSION, 1996
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0021|
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0022|
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0023| February 5, 1996
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0024|
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0025|
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0001| Mr. Speaker:
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0002|
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0003| Your TAXATION AND REVENUE COMMITTEE, to whom has
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0004| been referred
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0005|
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0006| HOUSE BILL 534
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0007|
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0008| has had it under consideration and reports same with
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0009| recommendation that it DO PASS, and thence referred to the
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0010| APPROPRIATIONS AND FINANCE COMMITTEE.
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0011|
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0012| Respectfully submitted,
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0013|
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0014|
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0015|
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0016|
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0017| Jerry W. Sandel, Chairman
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0018|
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0019|
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0020| Adopted Not Adopted
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0021|
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0022| (Chief Clerk) (Chief Clerk)
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0023|
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0024| Date
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0025|
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0001| The roll call vote was 12 For 0 Against
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0002| Yes: 12
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0003| Excused: Sandoval
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0004| Absent: None
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0005|
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0006|
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0007|
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0008| H0534TR1
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0009|
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0010| FORTY-SECOND LEGISLATURE
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0011| SECOND SESSION, 1996
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0012|
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0013|
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0014| February 12, 1996
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0015|
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0016| Mr. President:
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0017|
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0018| Your WAYS AND MEANS COMMITTEE, to whom has been
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0019| referred
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0020|
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0021| HOUSE BILL 534
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0022|
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0023| has had it under consideration and reports same with
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0024| recommendation that it DO PASS.
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0025|
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0001| Respectfully submitted,
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0002|
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0003|
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0004|
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0005| __________________________________
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0006| TITO D. CHAVEZ, Chairman
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0007|
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0008|
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0009|
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0010| Adopted_______________________ Not Adopted_______________________
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0011| (Chief Clerk) (Chief Clerk)
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0012|
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0013|
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0014|
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0015| Date ________________________
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0016|
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0017|
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0018| The roll call vote was 5 For 0 Against
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0019| Yes: 5
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0020| No: 0
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0021| Excused: Jennings, Riley, Wiener
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0022| Absent: None
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0023|
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0024|
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0025| H0534WM1
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0001|
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