0001| HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR
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0002| HOUSE BILLS 127, 243, 299, 301, 443 AND 450
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0003| 43rd legislature - STATE OF NEW MEXICO - second session, 1998
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0010|
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0011| AN ACT
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0012| RELATING TO TAXATION; AUTHORIZING AN INCREASE IN THE RATE OF
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0013| THE MUNICIPAL INFRASTRUCTURE GROSS RECEIPTS TAX; AUTHORIZING A
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0014| LOCAL OPTION COUNTY INFRASTRUCTURE GROSS RECEIPTS TAX;
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0015| REQUIRING VOTER APPROVAL OF CERTAIN TAXES; CHANGING THE
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0016| PURPOSES FOR WHICH CERTAIN LOCAL OPTION GROSS RECEIPTS TAXES
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0017| MAY BE IMPOSED; AUTHORIZING THE ISSUANCE OF CERTAIN MUNICIPAL
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0018| AND COUNTY GROSS RECEIPTS TAX REVENUE BONDS; AMENDING THE
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0019| LOCAL ECONOMIC DEVELOPMENT ACT; AMENDING AND ENACTING SECTIONS
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0020| OF THE NMSA 1978.
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0021|
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0022| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0023| Section 1. Section 3-31-1 NMSA 1978 (being Laws 1973,
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0024| Chapter 395, Section 3, as amended) is amended to read:
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0025| "3-31-1. REVENUE BONDS--AUTHORITY TO ISSUE--PLEDGE OF
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- 1 -0001| REVENUES--LIMITATION ON TIME OF ISSUANCE.--In addition to any
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0002| other law and constitutional home rule powers authorizing a
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0003| municipality to issue revenue bonds, a municipality may issue
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0004| revenue bonds pursuant to Chapter 3, Article 31 NMSA 1978 for
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0005| the purposes specified in this section. The term "pledged
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0006| revenues", as used in Chapter 3, Article 31 NMSA 1978, means
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0007| the revenues, net income or net revenues authorized to be
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0008| pledged to the payment of particular revenue bonds as
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0009| specifically provided in Subsections A through I of this
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0010| section.
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0011| A. Utility revenue bonds may be issued for
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0012| acquiring, extending, enlarging, bettering, repairing or
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0013| otherwise improving a municipal utility or for any combination
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0014| of the foregoing purposes. The municipality may pledge
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0015| irrevocably any or all of the net revenues from the operation
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0016| of the municipal utility or of any one or more of [any]
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0017| other such municipal utilities for payment of the interest on
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0018| and principal of the revenue bonds. These bonds are sometimes
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0019| referred to in Chapter 3, Article 31 NMSA 1978 as "utility
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0020| revenue bonds" or "utility bonds".
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0021| B. Joint utility revenue bonds may be issued for
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0022| acquiring, extending, enlarging, bettering, repairing or
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0023| otherwise improving joint water facilities, sewer facilities,
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0024| gas facilities or electric facilities or for any combination
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0025| of the foregoing purposes. The municipality may pledge
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- 2 -0001| irrevocably any or all of the net revenues from the operation
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0002| of these municipal utilities for the payment of the interest on
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0003| and principal of the bonds. These bonds are sometimes referred
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0004| to in Chapter 3, Article 31 NMSA 1978 as "joint utility revenue
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0005| bonds" or "joint utility bonds".
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0006| C. For the purposes of this subsection, "gross
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0007| receipts tax revenue bonds" means gross receipts tax revenue
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0008| bonds or sales tax revenue bonds. Gross receipts tax revenue
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0009| bonds may be issued for any one or more of the following
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0010| purposes:
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0011| (1) constructing, purchasing, furnishing,
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0012| equipping, rehabilitating, making additions to or making
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0013| improvements to one or more public buildings or purchasing or
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0014| improving any ground relating thereto, including but not
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0015| necessarily limited to acquiring and improving parking lots, or
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0016| any combination of the foregoing;
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0017| (2) acquiring or improving municipal or public
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0018| parking lots, structures or facilities or any combination of the
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0019| foregoing;
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0020| (3) purchasing, acquiring or rehabilitating
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0021| fire-fighting equipment or any combination of the foregoing;
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0022| (4) acquiring, extending, enlarging, bettering,
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0023| repairing, otherwise improving or maintaining storm sewers and
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0024| other drainage improvements, sanitary sewers, sewage treatment
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0025| plants or water utilities, including but not necessarily limited
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- 3 -0001| to the acquisition of rights of way and water and water rights,
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0002| or any combination of the foregoing;
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0003| (5) reconstructing, resurfacing, maintaining,
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0004| repairing or otherwise improving existing alleys, streets, roads
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0005| or bridges or any combination of the foregoing or laying off,
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0006| opening, constructing or otherwise acquiring new alleys, streets,
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0007| roads or bridges or any combination of the foregoing, provided
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0008| that any of the foregoing improvements may include but are not
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0009| limited to the acquisition of rights of way;
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0010| (6) purchasing, acquiring, constructing, making
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0011| additions to, enlarging, bettering, extending or equipping any
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0012| airport facilities or any combination of the foregoing, including
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0013| without limitation the acquisition of land, easements or rights
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0014| of way therefor;
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0015| (7) purchasing or otherwise acquiring or
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0016| clearing land or for purchasing, otherwise acquiring and
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0017| beautifying land for open space;
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0018| (8) acquiring, constructing, purchasing,
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0019| equipping, furnishing, making additions to, renovating,
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0020| rehabilitating, beautifying or otherwise improving public parks,
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0021| public recreational buildings or other public recreational
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0022| facilities or any combination of the foregoing; [and]
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0023| (9) acquiring, constructing, extending,
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0024| enlarging, bettering, repairing, otherwise improving or
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0025| maintaining solid waste disposal equipment, equipment for
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- 4 -0001| operation and maintenance of sanitary landfills, sanitary
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0002| landfills, solid waste facilities or any combination of the
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0003| foregoing; and
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0004| (10) acquiring, constructing, extending,
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0005| bettering, repairing or otherwise improving a public transit
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0006| system or any regional transit systems or facilities.
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0007| The municipality may pledge irrevocably any or all of the
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0008| gross receipts tax revenue received by the municipality pursuant
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0009| to Section 7-1-6.4 or 7-1-6.12 [or 7-19A-6] NMSA 1978 [or
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pursuant to the Municipal Infrastructure Gross Receipts Tax Act]
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0011| to the payment of the interest on and principal of the gross
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0012| receipts tax revenue bonds for any of the purposes authorized in
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0013| this section or for specific purposes or for any area of
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0014| municipal government services, including but not limited to those
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0015| specified in Subsection [B] C of Section 7-19D-9 NMSA 1978,
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0016| or for public purposes authorized by municipalities having
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0017| constitutional home rule charters. [Any] A law that imposes
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0018| or authorizes the imposition of a municipal gross receipts tax or
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0019| that affects the municipal gross receipts tax, or [any] a law
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0020| supplemental thereto or otherwise appertaining thereto, shall not
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0021| be repealed or amended or otherwise directly or indirectly
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0022| modified in such a manner as to impair adversely any outstanding
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0023| revenue bonds that may be secured by a pledge of such municipal
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0024| gross receipts tax unless [such] the outstanding revenue
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0025| bonds have been discharged in full or provision has been fully
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- 5 -0001| made therefor.
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0002| Revenues in excess of the annual principal and interest due
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0003| on gross receipts tax revenue bonds secured by a pledge of gross
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0004| receipts tax revenue may be accumulated in a debt service reserve
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0005| account until an amount equal to the maximum amount permitted
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0006| pursuant to the provisions of the United States treasury
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0007| regulations is accumulated in the debt service reserve account.
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0008| After the debt service reserve account requirements have been
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0009| met, the excess revenue shall be accumulated in an extraordinary
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0010| mandatory redemption fund and annually used to redeem the bonds
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0011| prior to their stated maturity date. The governing body of the
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0012| municipality may appoint a commercial bank trust department to
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0013| act as trustee of the gross receipts tax revenue and to
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0014| administer the payment of principal of and interest on the bonds
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0015| and to redeem the bonds from the excess revenues deposited in the
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0016| extraordinary mandatory redemption fund.
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0017| D. As used in this section, the term "public
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0018| building" includes but is not limited to fire stations, police
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0019| buildings, municipal jails, regional jails or juvenile
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0020| detention facilities, libraries, museums, auditoriums,
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0021| convention halls, hospitals, buildings for administrative
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0022| offices, city halls and garages for housing, repairing and
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0023| maintaining city vehicles and equipment. As used in Chapter 3,
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0024| Article 31 NMSA 1978, the term "gross receipts tax revenue bonds"
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0025| means the bonds authorized in Subsection C of this section, and
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- 6 -0001| the term "gross receipts tax revenue" means the amount of money
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0002| distributed to the municipality as authorized by Section 7-1-6.4
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0003| NMSA 1978 or the amount of money transferred to the municipality
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0004| as authorized by Section 7-1-6.12 NMSA 1978 for any municipal
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0005| gross receipts tax imposed pursuant to [Section 7-19-4 NMSA
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1978] the Municipal Local Option Gross Receipts Taxes Act. As
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0007| used in Chapter 3, Article 31 NMSA 1978, the term "bond" means
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0008| any obligation of a municipality issued under Chapter 3, Article
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0009| 31 NMSA 1978, whether designated as a bond, note, loan, warrant,
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0010| debenture, lease-purchase agreement or other instrument
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0011| evidencing an obligation of a municipality to make payments.
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0012| E. Gasoline tax revenue bonds may be issued for
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0013| laying off, opening, constructing, reconstructing, resurfacing,
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0014| maintaining, acquiring rights of way, repairing and otherwise
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0015| improving municipal buildings, alleys, streets, public roads and
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0016| bridges or any combination of the foregoing purposes. The
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0017| municipality may pledge irrevocably any or all of the gasoline
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0018| tax revenue received by the municipality to the payment of the
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0019| interest on and principal of the gasoline tax revenue bonds. As
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0020| used in Chapter 3, Article 31 NMSA 1978, "gasoline tax revenue
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0021| bonds" means the bonds authorized in this subsection, and
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0022| "gasoline tax revenue" means all or portions of the amounts of
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0023| tax revenues distributed to municipalities pursuant to Sections
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0024| 7-1-6.9 [7-1-6.14] and 7-1-6.27 NMSA 1978, as from time to time
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0025| amended and supplemented.
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- 7 -0001| F. Project revenue bonds may be issued for acquiring,
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0002| extending, enlarging, bettering, repairing, improving,
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0003| constructing, purchasing, furnishing, equipping and
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0004| rehabilitating any revenue-producing project, including, where
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0005| applicable, purchasing, otherwise acquiring or improving the
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0006| ground therefor, including but not necessarily limited to
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0007| acquiring and improving parking lots, or for any combination of
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0008| the foregoing purposes. The municipality may pledge irrevocably
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0009| any or all of the net revenues from the operation of the revenue-
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0010| producing project for which the particular project revenue bonds
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0011| are issued to the payment of the interest on and principal of
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0012| [such] the project revenue bonds. The net revenues of any
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0013| revenue-producing project may not be pledged to the project
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0014| revenue bonds issued for [any] a revenue-producing project
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0015| that clearly is unrelated in nature; but nothing in this
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0016| subsection shall prevent the pledge to [any of] such project
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0017| revenue bonds of any [such] revenues received from [any]
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0018| existing, future or disconnected facilities and equipment that
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0019| are related to and that may constitute a part of the particular
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0020| revenue-producing project. [Any] A general determination by
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0021| the governing body that any facilities or equipment is reasonably
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0022| related to and shall constitute a part of a specified revenue-
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0023| producing project shall be conclusive if set forth in the
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0024| proceedings authorizing such project revenue bonds. As used in
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0025| Chapter 3, Article 31 NMSA 1978:
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- 8 -0001| (1) "project revenue bonds" means the bonds
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0002| authorized in this subsection; and
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0003| (2) "project revenues" means the net revenues
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0004| of revenue-producing projects that may be pledged to project
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0005| revenue bonds pursuant to this subsection.
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0006| G. Fire district revenue bonds may be issued for
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0007| acquiring, extending, enlarging, bettering, repairing, improving,
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0008| constructing, purchasing, furnishing, equipping and
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0009| rehabilitating any fire district project, including, where
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0010| applicable, purchasing, otherwise acquiring or improving the
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0011| ground therefor, or for any combination of the foregoing
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0012| purposes. The municipality may pledge irrevocably any or all of
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0013| the revenues received by the fire district from the fire
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0014| protection fund as provided in Sections 59A-53-1 through
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0015| 59A-53-17 NMSA 1978 and any or all of the revenues provided for
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0016| the operation of the fire district project for which the
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0017| particular bonds are issued to the payment of the interest on and
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0018| principal of [such] the bonds. The revenues of any fire
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0019| district project shall not be pledged to the bonds issued for
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0020| [any] a fire district project that clearly is unrelated in
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0021| its purpose; but nothing in this section shall prevent the pledge
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0022| to [any] such bonds of any [such] revenues received from
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0023| [any] existing, future or disconnected facilities and equipment
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0024| that are related to and that may constitute a part of the
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0025| particular fire district project. [Any] A general
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- 9 -0001| determination by the governing body of the municipality that any
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0002| facilities or equipment are reasonably related to and shall
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0003| constitute a part of a specified fire district project shall be
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0004| conclusive if set forth in the proceedings authorizing such fire
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0005| district bonds.
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0006| H. Law enforcement protection revenue bonds may be
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0007| issued for the repair and purchase of law enforcement apparatus
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0008| and equipment that meet nationally recognized standards. The
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0009| municipality may pledge irrevocably any or all of the revenues
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0010| received by the municipality from the law enforcement protection
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0011| fund distributions pursuant to Sections 29-13-1 through 29-13-9
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0012| NMSA 1978 to the payment of the interest on and principal of the
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0013| law enforcement protection revenue bonds.
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0014| I. Economic development gross receipts tax revenue
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0015| bonds may be issued for the purpose of furthering economic
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0016| development projects as defined in the Local Economic Development
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0017| Act. The municipality may pledge irrevocably any or all of the
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0018| revenue received from the municipal infrastructure gross receipts
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0019| tax to the payment of the interest on and principal of the
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0020| economic development gross receipts tax revenue bonds for any of
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0021| the purposes authorized in this subsection. A law that imposes
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0022| or authorizes the imposition of a municipal infrastructure gross
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0023| receipts tax or that affects the municipal infrastructure gross
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0024| receipts tax, or a law supplemental to or otherwise pertaining to
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0025| the tax, shall not be repealed or amended or otherwise directly
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- 10 -0001| or indirectly modified in such a manner as to impair adversely
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0002| any outstanding revenue bonds that may be secured by a pledge of
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0003| the municipal infrastructure gross receipts tax unless the
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0004| outstanding revenue bonds have been discharged in full or
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0005| provision has been fully made for their discharge. As used in
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0006| Chapter 3, Article 31 NMSA 1978, "economic development gross
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0007| receipts tax revenue bonds" means the bonds authorized in this
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0008| subsection, and "municipal infrastructure gross receipts tax
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0009| revenue" means any or all of the revenue from the municipal
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0010| infrastructure gross receipts tax transferred to the municipality
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0011| pursuant to Section 7-1-6.12 NMSA 1978.
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0012| [I.] J. Except for the purpose of refunding
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0013| previous revenue bond issues, no municipality may sell revenue
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0014| bonds payable from pledged revenues after the expiration of two
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0015| years from the date of the ordinance authorizing the issuance of
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0016| the bonds or, for bonds to be issued and sold to the New Mexico
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0017| finance authority as authorized in Subsection C of Section 3-31-4
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0018| NMSA 1978, after the expiration of two years from the date of the
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0019| resolution authorizing the issuance of the bonds. However, any
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0020| period of time during which a particular revenue bond issue is in
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0021| litigation shall not be counted in determining the expiration
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0022| date of that issue."
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0023| Section 2. Section 4-62-1 NMSA 1978 (being Laws 1992,
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0024| Chapter 95, Section 1, as amended) is amended to read:
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0025| "4-62-1. REVENUE BONDS--AUTHORITY TO ISSUE--PLEDGE OF
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- 11 -0001| REVENUES--LIMITATION ON TIME OF ISSUANCE.--
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0002| A. In addition to any other law authorizing a county
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0003| to issue revenue bonds, a county may issue revenue bonds pursuant
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0004| to Chapter 4, Article 62 NMSA 1978 for the purposes specified in
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0005| this section. The term "pledged revenues", as used in Chapter 4,
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0006| Article 62 NMSA 1978, means the revenues, net income or net
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0007| revenues authorized to be pledged to the payment of particular
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0008| revenue bonds as specifically provided in Subsections B through
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0009| [J] K of this section.
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0010| B. Gross receipts tax revenue bonds may be issued for
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0011| [any] one or more of the following purposes:
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0012| (1) constructing, purchasing, furnishing,
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0013| equipping, rehabilitating, making additions to or making
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0014| improvements to one or more public buildings or purchasing or
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0015| improving [any] ground relating thereto, including but not
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0016| necessarily limited to acquiring and improving parking lots, or
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0017| any combination of the foregoing;
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0018| (2) acquiring or improving county or public
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0019| parking lots, structures or facilities or any combination of the
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0020| foregoing;
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0021| (3) purchasing, acquiring or rehabilitating
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0022| firefighting equipment or any combination of the foregoing;
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0023| (4) acquiring, extending, enlarging, bettering,
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0024| repairing, otherwise improving or maintaining storm sewers and
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0025| other drainage improvements, sanitary sewers, sewage treatment
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- 12 -0001| plants, [or] water utilities or other water, wastewater or
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0002| related facilities, including but not limited to the acquisition
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0003| of rights of way and water and water rights or any combination of
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0004| the foregoing;
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0005| (5) reconstructing, resurfacing, maintaining,
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0006| repairing or otherwise improving existing alleys, streets, roads
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0007| or bridges or any combination of the foregoing or laying off,
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0008| opening, constructing or otherwise acquiring new alleys, streets,
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0009| roads or bridges or any combination of the foregoing; provided
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0010| that any of the foregoing improvements may include the
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0011| acquisition of rights of way;
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0012| (6) purchasing, acquiring, constructing, making
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0013| additions to, enlarging, bettering, extending or equipping
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0014| airport facilities or any combination of the foregoing, including
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0015| without limitation the acquisition of land, easements or rights
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0016| of way;
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0017| (7) purchasing or otherwise acquiring or
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0018| clearing land or purchasing, otherwise acquiring and beautifying
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0019| land for open space;
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0020| (8) acquiring, constructing, purchasing,
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0021| equipping, furnishing, making additions to, renovating,
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0022| rehabilitating, beautifying or otherwise improving public parks,
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0023| public recreational buildings or other public recreational
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0024| facilities or any combination of the foregoing; [or]
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0025| (9) acquiring, constructing, extending,
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- 13 -0001| enlarging, bettering, repairing or otherwise improving or
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0002| maintaining solid waste disposal equipment, equipment for
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0003| operation and maintenance of sanitary landfills, sanitary
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0004| landfills, solid waste facilities or any combination of the
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0005| foregoing; or
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0006| (10) acquiring, constructing, extending,
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0007| bettering, repairing or otherwise improving public transit
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0008| systems or any regional transit systems or facilities.
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0009| A county may pledge irrevocably any or all of the revenue
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0010| from the first one-eighth of one percent increment and the third
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0011| one-eighth of one percent increment of the county gross receipts
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0012| tax and the county infrastructure gross receipts tax for
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0013| payment of principal and interest due in connection with, and
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0014| other expenses related to, gross receipts tax revenue bonds for
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0015| any of the purposes authorized in this section or specific
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0016| purposes or for any area of county government services. If the
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0017| [county gross receipts tax] revenue from the first one-eighth
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0018| of one percent increment or the third one-eighth of one percent
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0019| increment of the county gross receipts tax or the county
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0020| infrastructure gross receipts tax is pledged for payment of
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0021| principal and interest as authorized by this subsection, the
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0022| pledge shall require the revenues received from that increment of
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0023| the county gross receipts tax or the county infrastructure gross
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0024| receipts tax to be deposited into a special bond fund for
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0025| payment of the principal, interest and expenses. At the end of
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- 14 -0001| each fiscal year, [any] money remaining in the special bond
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0002| fund after the annual obligations for the bonds are fully met may
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0003| be transferred to any other fund of the county.
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0004| Revenues in excess of the annual principal and interest due
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0005| on gross receipts tax revenue bonds secured by a pledge of gross
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0006| receipts tax revenue may be accumulated in a debt service reserve
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0007| account until an amount equal to the maximum amount permitted
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0008| pursuant to the provisions of the United States treasury
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0009| regulations is accumulated in the debt service reserve account.
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0010| After the debt service reserve account requirements have been
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0011| met, the excess revenue shall be accumulated in an extraordinary
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0012| mandatory redemption fund and annually used to redeem the bonds
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0013| prior to their stated maturity date. The governing body of the
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0014| county may appoint a commercial bank trust department to act as
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0015| trustee of the proceeds of the tax and to administer the payment
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0016| of principal of and interest on the bonds and redeem the bonds
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0017| from the excess revenues deposited in the extraordinary mandatory
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0018| redemption fund.
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0019| C. Fire protection revenue bonds may be issued for
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0020| acquiring, extending, enlarging, bettering, repairing, improving,
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0021| constructing, purchasing, furnishing, equipping or rehabilitating
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0022| any independent fire district project or facilities, including,
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0023| where applicable, purchasing, otherwise acquiring or improving
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0024| the ground for the project or any combination of such purposes.
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0025| A county may pledge irrevocably any or all of the county fire
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- 15 -0001| protection excise tax revenue for payment of principal and
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0002| interest due in connection with, and other expenses related to,
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0003| fire protection revenue bonds. These bonds may be referred to in
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0004| Chapter 4, Article 62 NMSA 1978 as "fire protection revenue
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0005| bonds".
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0006| D. Environmental revenue bonds may be issued for the
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0007| acquisition and construction of solid waste facilities, water
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0008| facilities, wastewater facilities, sewer systems and related
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0009| facilities. A county may pledge irrevocably any or all of the
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0010| county environmental services gross receipts tax revenue for
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0011| payment of principal and interest due in connection with, and
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0012| other expenses related to, environmental revenue bonds. These
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0013| bonds may be referred to in Chapter 4, Article 62 NMSA 1978 as
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0014| "environmental revenue bonds".
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0015| E. Gasoline tax revenue bonds may be issued for the
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0016| acquisition of rights of way for and the construction,
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0017| reconstruction, resurfacing, maintenance, repair or other
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0018| improvement of county roads and bridges. A county may pledge
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0019| irrevocably any or all of the county gasoline tax revenue for
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0020| payment of principal and interest due in connection with, and
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0021| other expenses related to, county gasoline tax revenue bonds.
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0022| These bonds may be referred to in Chapter 4, Article 62 NMSA 1978
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0023| as "gasoline tax revenue bonds".
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0024| F. Utility revenue bonds or joint utility revenue
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0025| bonds may be issued for acquiring, extending, enlarging,
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- 16 -0001| bettering, repairing or otherwise improving water facilities,
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0002| sewer facilities, gas facilities or electric facilities or for
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0003| any combination of the foregoing purposes. A county may pledge
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0004| irrevocably any or all of the net revenues from the operation of
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0005| the utility or joint utility for which the particular utility or
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0006| joint utility bonds are issued to the payment of principal and
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0007| interest due in connection with, and other expenses related to,
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0008| utility or joint utility revenue bonds. These bonds may be
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0009| referred to in Chapter 4, Article 62 NMSA 1978 as "utility
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0010| revenue bonds" or "joint utility revenue bonds".
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0011| G. Project revenue bonds may be issued for acquiring,
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0012| extending, enlarging, bettering, repairing, improving,
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0013| constructing, purchasing, furnishing, equipping or rehabilitating
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0014| any revenue-producing project, including, as applicable,
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0015| purchasing, otherwise acquiring or improving the ground therefor
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0016| and including but not limited to acquiring and improving parking
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0017| lots, or may be issued for any combination of the foregoing
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0018| purposes. The county may pledge irrevocably any or all of the
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0019| net revenues from the operation of the revenue-producing project
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0020| for which the particular project revenue bonds are issued to the
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0021| payment of the interest on and principal of the project revenue
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0022| bonds. The net revenues of any revenue-producing project may not
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0023| be pledged to the project revenue bonds issued for any other
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0024| revenue-producing project that is clearly unrelated in nature;
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0025| but nothing in this subsection prevents the pledge to any of the
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- 17 -0001| project revenue bonds of [any] the revenues received from
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0002| [any] existing, future or disconnected facilities and equipment
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0003| that are related to and that may constitute a part of the
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0004| particular revenue-producing project. A general determination by
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0005| the governing body that facilities or equipment are reasonably
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0006| related to and constitute a part of a specified revenue-producing
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0007| project shall be conclusive if set forth in the proceedings
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0008| authorizing the project revenue bonds. As used in Chapter 4,
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0009| Article 62 NMSA 1978:
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0010| (1) "project revenue bonds" means the bonds
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0011| authorized in this subsection; and
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0012| (2) "project revenues" means the net revenues
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0013| of revenue-producing projects that may be pledged to project
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0014| revenue bonds pursuant to this subsection.
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0015| H. Fire district revenue bonds may be issued for
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0016| acquiring, extending, enlarging, bettering, repairing, improving,
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0017| constructing, purchasing, furnishing, equipping and
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0018| rehabilitating any fire district project, including, where
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0019| applicable, purchasing, otherwise acquiring or improving the
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0020| ground therefor, or for any combination of the foregoing
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0021| purposes. The county may pledge irrevocably any or all of the
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0022| revenues received by the fire district from the fire protection
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0023| fund as provided in Sections 59A-53-1 through 59A-53-17 NMSA 1978
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0024| and any or all of the revenues provided for the operation of the
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0025| fire district project for which the particular bonds are issued
|
- 18 -0001| to the payment of the interest on and principal of [such] the
|
0002| bonds. The revenues of a fire district project shall not be
|
0003| pledged to the bonds issued for a fire district project that
|
0004| clearly is unrelated in its purpose; but nothing in this section
|
0005| shall prevent the pledge to [any of] such bonds of [any such]
|
0006| revenues received from [any] existing, future or [of]
|
0007| disconnected facilities and equipment that are related to and
|
0008| that may constitute a part of the particular fire district
|
0009| project. A general determination by the governing body of the
|
0010| county that facilities or equipment are reasonably related to and
|
0011| constitute a part of a specified fire district project shall be
|
0012| conclusive if set forth in the proceedings authorizing the fire
|
0013| district bonds.
|
0014| I. Law enforcement protection revenue bonds may be
|
0015| issued for the repair and purchase of law enforcement apparatus
|
0016| and equipment that meet nationally recognized standards. The
|
0017| county may pledge irrevocably any or all of the revenues received
|
0018| by the county from the law enforcement protection fund
|
0019| distributions pursuant to Sections 29-13-1 through 29-13-9 NMSA
|
0020| 1978 to the payment of the interest on and principal of the law
|
0021| enforcement protection revenue bonds.
|
0022| J. Hospital emergency gross receipts tax revenue
|
0023| bonds may be issued for acquisition, equipping, remodeling or
|
0024| improvement of a county hospital facility. A county may pledge
|
0025| irrevocably, to the payment of the interest on and principal of
|
- 19 -0001| the hospital emergency gross receipts tax revenue bonds, any or
|
0002| all of the revenues received by the county from a county hospital
|
0003| emergency gross receipts tax imposed pursuant to Section
|
0004| 7-20E-12.1 NMSA 1978 and dedicated to payment of bonds or a loan
|
0005| for acquisition, equipping, remodeling or improvement of a county
|
0006| hospital facility.
|
0007| K. Economic development gross receipts tax revenue
|
0008| bonds may be issued for the purpose of furthering economic
|
0009| development projects as defined in the Local Economic Development
|
0010| Act. A county may pledge irrevocably any or all of the county
|
0011| infrastructure gross receipts tax to the payment of the interest
|
0012| on and principal of the economic development gross receipts tax
|
0013| revenue bonds for any of the purposes authorized in this
|
0014| subsection.
|
0015| [K.] L. except for the purpose of refunding
|
0016| previous revenue bond issues, no county may sell revenue bonds
|
0017| payable from pledged revenue after the expiration of two years
|
0018| from the date of the ordinance authorizing the issuance of the
|
0019| bonds or, for bonds to be issued and sold to the New Mexico
|
0020| finance authority as authorized in Subsection C of Section 4-62-4
|
0021| NMSA 1978, after the expiration of two years from the date of the
|
0022| resolution authorizing the issuance of the bonds. However, any
|
0023| period of time during which a particular revenue bond issue is in
|
0024| litigation shall not be counted in determining the expiration
|
0025| date of that issue.
|
- 20 -0001| [L.] M. No bonds may be issued by a county, other
|
0002| than an H class county, a class B county as defined in Section
|
0003| 4-36-8 NMSA 1978 or a class A county as described in Section
|
0004| 4-36-10 NMSA 1978, to acquire, equip, extend, enlarge, better,
|
0005| repair or construct [any] a utility unless the utility is
|
0006| regulated by the New Mexico public utility commission pursuant to
|
0007| the Public Utility Act and the issuance of the bonds is approved
|
0008| by the commission. For purposes of Chapter 4, Article 62 NMSA
|
0009| 1978, a "utility" includes but is not limited to [any] a
|
0010| water, wastewater, sewer, gas or electric utility or joint
|
0011| utility serving the public. H class counties shall obtain New
|
0012| Mexico public utility commission approvals required by Section
|
0013| 3-23-3 NMSA 1978.
|
0014| [M.] N. Any law that imposes or authorizes the
|
0015| imposition of a county gross receipts tax, a county environmental
|
0016| services gross receipts tax, a county fire protection excise
|
0017| tax, a county infrastructure gross receipts tax, the gasoline
|
0018| tax or the county hospital emergency gross receipts tax, or that
|
0019| affects any of those taxes, shall not be repealed or amended in
|
0020| such a manner as to impair [any] outstanding revenue bonds that
|
0021| are issued pursuant to Chapter 4, Article 62 NMSA 1978 and that
|
0022| may be secured by a pledge of those taxes unless the outstanding
|
0023| revenue bonds have been discharged in full or provision has been
|
0024| fully made therefor.
|
0025| [N.] O. As used in this section:
|
- 21 -0001| (1) "county infrastructure gross receipts tax
|
0002| revenue" means the revenue from the county infrastructure gross
|
0003| receipts tax transferred to the county pursuant to Section
|
0004| 7-1-6.13 NMSA 1978;
|
0005| [(1)] (2) "county environmental services
|
0006| gross receipts tax revenue" means the revenue from the county
|
0007| environmental services gross receipts tax transferred to the
|
0008| county pursuant to Section 7-1-6.13 NMSA 1978;
|
0009| [(2)] (3) "county fire protection excise
|
0010| tax revenue" means the revenue from the county fire protection
|
0011| excise tax transferred to the county pursuant to Section 7-1-6.13
|
0012| NMSA 1978;
|
0013| [(3)] (4) "county gross receipts tax
|
0014| revenue" means the revenue attributable to the first one-eighth
|
0015| of one percent [increment] and the third one-eighth of one
|
0016| percent increments of the county gross receipts tax transferred
|
0017| to the county pursuant to Section 7-1-6.13 NMSA 1978 and any
|
0018| distribution related to the first one-eighth of one percent made
|
0019| pursuant to Section 7-1-6.16 NMSA 1978;
|
0020| [(4)] (5) "gasoline tax revenue" means the
|
0021| revenue from that portion of the gasoline tax distributed to the
|
0022| county pursuant to Sections 7-1-6.9 and 7-1-6.26 NMSA 1978; and
|
0023| [(5)] (6) "public building" includes but is
|
0024| not limited to fire stations, police buildings, county or
|
0025| regional jails, county or regional juvenile detention
|
- 22 -0001| facilities, libraries, museums, auditoriums, convention halls,
|
0002| hospitals, buildings for administrative offices, courthouses and
|
0003| garages for housing, repairing and maintaining county vehicles
|
0004| and equipment.
|
0005| [O.] P. As used in Chapter 4, Article 62 NMSA
|
0006| 1978, the term "bond" means any obligation of a county issued
|
0007| under Chapter 4, Article 62 NMSA 1978, whether designated as a
|
0008| bond, note, loan, warrant, debenture, lease-purchase agreement or
|
0009| other instrument evidencing an obligation of a county to make
|
0010| payments."
|
0011| Section 3. Section 5-10-3 NMSA 1978 (being Laws 1993,
|
0012| Chapter 297, Section 3) is amended to read:
|
0013| "5-10-3. DEFINITIONS.--As used in the Local Economic
|
0014| Development Act:
|
0015| A. "department" means the economic development
|
0016| department;
|
0017| B. "economic development project" or "project" means
|
0018| the provision of direct or indirect assistance to a qualifying
|
0019| business by a local or regional government and includes the
|
0020| purchase, lease, grant, construction, reconstruction, improvement
|
0021| or other acquisition or conveyance of land, buildings or other
|
0022| infrastructure; public works improvements essential to the
|
0023| location or expansion of a qualifying business; [and] payments
|
0024| for professional services contracts necessary for local or
|
0025| regional governments to implement a plan or project; the
|
- 23 -0001| provision of direct loans or grants for land, buildings or
|
0002| infrastructure; loan guarantees securing the cost of land,
|
0003| buildings or infrastructure in an amount not to exceed the
|
0004| revenue that may be derived from the municipal infrastructure
|
0005| gross receipts tax or the county infrastructure gross receipts
|
0006| tax; grants for public works infrastructure improvements
|
0007| essential to the location or expansion of a qualifying business;
|
0008| purchase of land for a publicly held industrial park; and the
|
0009| construction of a building for use by a qualifying business;
|
0010| C. "governing body" means the city council or city
|
0011| commission of a city, the board of trustees of a town or village
|
0012| or the board of county commissioners of a county;
|
0013| D. "local government" means a municipality or county;
|
0014| E. "municipality" means any incorporated city, town
|
0015| or village;
|
0016| F. "person" means an individual, corporation,
|
0017| association, partnership or other legal entity;
|
0018| G. "qualifying entity" means a corporation, limited
|
0019| liability company, partnership, joint venture, syndicate,
|
0020| association or other person that is one or a combination of two
|
0021| or more of the following:
|
0022| (1) an industry for the manufacturing,
|
0023| processing or assembling of [any] agricultural or manufactured
|
0024| products;
|
0025| (2) a commercial enterprise for storing,
|
- 24 -0001| warehousing, distributing or selling products of agriculture,
|
0002| mining or industry, but, other than as provided in Paragraph (5)
|
0003| of this subsection, not including any enterprise for sale of
|
0004| goods or commodities at retail or for distribution to the public
|
0005| of electricity, gas, water or telephone or other services
|
0006| commonly classified as public utilities;
|
0007| (3) a business in which all or part of the
|
0008| activities of the business involves the supplying of services to
|
0009| the general public or to governmental agencies or to a specific
|
0010| industry or customer, but, other than as provided in Paragraph
|
0011| (5) of this subsection, not including businesses primarily
|
0012| engaged in the sale of goods or commodities at retail;
|
0013| (4) an Indian nation, tribe or pueblo or a
|
0014| federally chartered tribal corporation; or
|
0015| (5) a telecommunications sales enterprise that
|
0016| makes the majority of its sales to persons outside New Mexico;
|
0017| and
|
0018| H. "regional government" means any combination of
|
0019| municipalities and counties that enter into a joint powers
|
0020| agreement to provide for economic development projects pursuant
|
0021| to a plan adopted by all parties to the joint powers agreement."
|
0022| Section 4. Section 5-10-4 NMSA 1978 (being Laws 1993,
|
0023| Chapter 297, Section 4) is amended to read:
|
0024| "5-10-4. ECONOMIC DEVELOPMENT PROJECTS--RESTRICTIONS ON
|
0025| PUBLIC EXPENDITURES OR PLEDGES OF CREDIT.--
|
- 25 -0001| A. No local or regional government shall provide
|
0002| public support for economic development projects as permitted
|
0003| pursuant to Article 9, Section 14 of the constitution of
|
0004| New Mexico except as provided in the Local Economic Development
|
0005| Act or as otherwise permitted by law.
|
0006| B. The total amount of public money expended and the
|
0007| value of credit pledged in the fiscal year in which that money is
|
0008| expended by a local government for economic development projects
|
0009| pursuant to Article 9, Section 14 of the constitution of New
|
0010| Mexico and the Local Economic Development Act shall not exceed
|
0011| five percent of the annual general fund expenditures of the local
|
0012| government in that fiscal year. The limits of this subsection
|
0013| shall not apply to:
|
0014| (1) the value of any land or building
|
0015| contributed to any project pursuant to a project participation
|
0016| agreement [shall not be subject to the limits of this
|
subsection];
|
0018| (2) revenue generated through the imposition
|
0019| of the municipal infrastructure gross receipts tax pursuant to
|
0020| the Municipal Local Option Gross Receipts Taxes Act for
|
0021| furthering or implementing economic development plans and
|
0022| projects as defined in the Local Economic Development Act;
|
0023| provided that no more than the greater of fifty thousand dollars
|
0024| ($50,000) or ten percent of the revenue collected shall be used
|
0025| for promotion and administration of or professional services
|
- 26 -0001| contracts related to the implementation of any such economic
|
0002| development plan adopted by the governing body;
|
0003| (3) revenue generated through the imposition
|
0004| of a county infrastructure gross receipts tax pursuant to the
|
0005| County Local Option Gross Receipts Taxes Act for furthering or
|
0006| implementing economic development plans and projects as defined
|
0007| in the Local Economic Development Act; provided that no more than
|
0008| the greater of fifty thousand dollars ($50,000) or ten percent of
|
0009| the revenue collected shall be used for promotion and
|
0010| administration of or professional services contracts related to
|
0011| the implementation of any such economic development plan adopted
|
0012| by the governing body;
|
0013| (4) the proceeds of a revenue bond issue to
|
0014| which municipal infrastructure gross receipts tax revenue is
|
0015| pledged;
|
0016| (5) the proceeds of a revenue bond issue to
|
0017| which county infrastructure gross receipts tax revenue is
|
0018| pledged; or
|
0019| (6) funds donated by private entities to be
|
0020| used for defraying the cost of a project.
|
0021| C. A regional or local government that generates
|
0022| revenue for economic development projects to which the limits of
|
0023| Subsection B of this section do not apply shall create an
|
0024| economic development fund into which such revenues shall be
|
0025| deposited. The economic development fund and income from the
|
- 27 -0001| economic development fund shall be deposited as provided by law.
|
0002| Money in the economic development fund may be expended only as
|
0003| provided in the Local Economic Development Act."
|
0004| Section 5. Section 5-10-6 NMSA 1978 (being Laws 1993,
|
0005| Chapter 297, Section 6) is amended to read:
|
0006| "5-10-6. ECONOMIC DEVELOPMENT PLAN--CONTENTS--
|
0007| PUBLICATION.--
|
0008| A. Every local or regional government seeking to
|
0009| pursue economic development projects shall adopt an economic
|
0010| development plan or a comprehensive plan that includes an
|
0011| economic development component. The plan may be specific to a
|
0012| single economic development goal or strategy or may include
|
0013| several goals or strategies. Any plan or plan amendment shall be
|
0014| adopted by ordinance of the governing body of the local
|
0015| government or each local government of a regional government
|
0016| proposing the plan or plan amendment.
|
0017| B. The economic development plan or the ordinance
|
0018| adopting the plan may:
|
0019| (1) describe the local or regional government's
|
0020| economic development and community goals and assign priority to
|
0021| and strategies for achieving those goals;
|
0022| (2) describe the types of qualifying entities
|
0023| and economic activities that will qualify for economic
|
0024| development projects;
|
0025| (3) describe the criteria to be used to
|
- 28 -0001| determine eligibility of an economic development project and a
|
0002| qualifying entity to participate in an economic development
|
0003| project;
|
0004| (4) describe the manner in which a qualifying
|
0005| entity may submit an economic development project application,
|
0006| including the type of information required from the qualifying
|
0007| entity sufficient to ensure its solvency and ability to perform
|
0008| its contractual obligations, its commitment to remain in the
|
0009| community and its commitment to the stated economic development
|
0010| goals of the local or regional government;
|
0011| (5) describe the process the local or regional
|
0012| government will use to verify the information submitted on an
|
0013| economic development project application;
|
0014| (6) if an economic development project is
|
0015| determined to be unsuccessful or if a qualifying entity seeks to
|
0016| leave the area, describe the methods the local or regional
|
0017| government will use to terminate its economic assistance and
|
0018| recoup its investment;
|
0019| (7) identify revenue sources, [other than]
|
0020| including those of the local or regional government, [which
|
must] that will be used to support economic development
|
0022| projects;
|
0023| (8) identify other resources the local or
|
0024| regional government is prepared to offer qualifying
|
0025| [businesses] entities, including specific land or buildings
|
- 29 -0001| it is willing to lease, sell or grant a qualifying [business]
|
0002| entity; community infrastructure it is willing to build, extend
|
0003| or expand, including roads, water, sewers or other utilities; and
|
0004| professional services contracts by local or regional governments
|
0005| necessary to provide these resources;
|
0006| (9) detail the minimum benefit the local or
|
0007| regional government requires from a qualifying entity, including
|
0008| the number and types of jobs to be created; the proposed payroll;
|
0009| repayment of loans, if any; purchase by the qualifying [basic
|
business] entity of local or regional government-provided
|
0011| land, buildings or infrastructure; the public to private
|
0012| investment ratio; and direct local tax base expansion;
|
0013| (10) describe the safeguards of public
|
0014| resources that will be ensured, including specific ways the local
|
0015| or regional government can recover any costs, land, buildings or
|
0016| other thing of value if a qualifying entity ceases operation,
|
0017| relocates or otherwise defaults or reneges on its contractual or
|
0018| implied obligations to the local or regional government; and
|
0019| (11) if a regional government, describe the
|
0020| joint powers agreement, including whether it can be terminated
|
0021| and, if so, how the contractual or other obligations, risks and
|
0022| any property will be assigned or divided among the local
|
0023| governments who are party to the agreement.
|
0024| C. The economic development plan shall be printed and
|
0025| made available to the residents within the local or regional
|
- 30 -0001| government area."
|
0002| Section 6. Section 7-19D-11 NMSA 1978 (being Laws 1991,
|
0003| Chapter 9, Section 3, as amended) is amended to read:
|
0004| "7-19D-11. MUNICIPAL INFRASTRUCTURE GROSS RECEIPTS
|
0005| TAX--AUTHORITY BY MUNICIPALITY TO IMPOSE--ORDINANCE
|
0006| REQUIREMENTS--ELECTION.--
|
0007| A. A majority of the members of the governing body of
|
0008| a municipality may enact an ordinance imposing an excise tax on
|
0009| any person engaging in business in the municipality for the
|
0010| privilege of engaging in business. The rate of the tax shall not
|
0011| exceed [one-eighth] one-fourth of one percent of the gross
|
0012| receipts of the person engaging in business and [prior to July
|
1, 1993] may be imposed in one-sixteenth of one percent
|
0014| increments by separate ordinances. Any ordinance [enacted]
|
0015| enacting any increment of the first one-eighth of one percent of
|
0016| the tax is not subject to a referendum of any kind,
|
0017| notwithstanding any requirement of any charter municipality,
|
0018| except that an increment that is imposed after July 1, 1998 for
|
0019| economic development purposes set forth in Paragraph (5) of
|
0020| Subsection C of this section shall be subject to a referendum as
|
0021| provided in Subsection D of this section.
|
0022| B. The tax imposed pursuant to Subsection A of this
|
0023| section may be referred to as the "municipal infrastructure gross
|
0024| receipts tax".
|
0025| C. The governing body of a municipality, at the time
|
- 31 -0001| of enacting any ordinance imposing the rate of the tax authorized
|
0002| in Subsection A of this section, may dedicate the revenue
|
0003| [either] for:
|
0004| (1) payment of special obligation bonds
|
0005| issued pursuant to a revenue bond act; [or for]
|
0006| (2) repair, replacement, construction or
|
0007| acquisition of infrastructure improvements, including but not
|
0008| limited to sanitary sewer lines, storm sewers and other drainage
|
0009| improvements, water, water rights, water lines and utilities,
|
0010| streets, alleys, rights of way, easements, international ports of
|
0011| entry and land within the municipality or within the
|
0012| extraterritorial zone of the municipality; [or may use the
|
revenue for]
|
0014| (3) municipal general purposes;
|
0015| (4) acquiring, constructing, extending,
|
0016| bettering, repairing or otherwise improving or operating or
|
0017| maintaining public transit systems or regional transit systems or
|
0018| authorities; and
|
0019| (5) furthering or implementing economic
|
0020| development plans and projects as defined in the Local Economic
|
0021| Development Act, and use of not more than the greater of fifty
|
0022| thousand dollars ($50,000) or ten percent of the revenue
|
0023| collected for promotion and administration of or professional
|
0024| services contracts related to implementation of an economic
|
0025| development plan adopted by the governing body pursuant to the
|
- 32 -0001| Local Economic Development Act and in accordance with law.
|
0002| D. An ordinance imposing any increment of the
|
0003| municipal infrastructure gross receipts tax in excess of the
|
0004| first one-eighth of one percent or any increment imposed after
|
0005| July 1, 1998 for economic development purposes set forth in
|
0006| Paragraph (5) of Subsection C of this section shall not go into
|
0007| effect until after an election is held and a majority of the
|
0008| voters of the municipality voting in the election votes in favor
|
0009| of imposing the tax. The governing body shall adopt a resolution
|
0010| calling for an election within seventy-five days of the date the
|
0011| ordinance is adopted on the question of imposing the tax. The
|
0012| question shall be submitted to the voters of the municipality as
|
0013| a separate question at a regular municipal election or at a
|
0014| special election called for that purpose by the governing body.
|
0015| A special municipal election shall be called, conducted and
|
0016| canvassed as provided in the Municipal Election Code. If a
|
0017| majority of the voters voting on the question approves the
|
0018| ordinance imposing the municipal infrastructure gross receipts
|
0019| tax, then the ordinance shall become effective in accordance with
|
0020| the provisions of the Municipal Local Option Gross Receipts Taxes
|
0021| Act. If the question of imposing the municipal infrastructure
|
0022| gross receipts tax fails, the governing body shall not again
|
0023| propose the imposition of any increment of the tax in excess of
|
0024| the first one-eighth of one percent for a period of one year from
|
0025| the date of the election."
|
- 33 -0001| Section 7. A new section of the County Local Option Gross
|
0002| Receipts Taxes Act is enacted to read:
|
0003| "[NEW MATERIAL] COUNTY INFRASTRUCTURE GROSS RECEIPTS
|
0004| TAX--AUTHORITY TO IMPOSE RATE--USE OF FUNDS--ELECTION.--
|
0005| A. The majority of the members of the governing
|
0006| body of a county may enact an ordinance imposing an excise tax
|
0007| at a rate not to exceed one-eighth of one percent of the gross
|
0008| receipts of any person engaging in business in the county area
|
0009| for the privilege of engaging in business. The tax may be
|
0010| imposed in increments of one-sixteenth of one percent not to
|
0011| exceed an aggregate rate of one-eighth of one percent.
|
0012| B. The tax imposed pursuant to Subsection A of this
|
0013| section may be referred to as the "county infrastructure gross
|
0014| receipts tax".
|
0015| C. The governing body, at the time of enacting an
|
0016| ordinance imposing a rate of tax authorized in Subsection A of
|
0017| this section, may dedicate the revenue for:
|
0018| (1) county general purposes;
|
0019| (2) payment of gross receipts tax revenue
|
0020| bonds issued pursuant to Chapter 4, Article 62 NMSA 1978;
|
0021| (3) repair, replacement, construction or
|
0022| acquisition of any county infrastructure improvements;
|
0023| (4) acquisition, construction, operation or
|
0024| maintenance of solid waste facilities, water facilities,
|
0025| wastewater facilities, sewer systems and related facilities;
|
- 34 -0001| (5) acquiring, constructing, extending,
|
0002| bettering, repairing or otherwise improving or operating or
|
0003| maintaining public transit systems or regional transit systems
|
0004| or authorities;
|
0005| (6) planning, design, construction,
|
0006| equipping, maintenance or operation of a county jail or
|
0007| juvenile detention facility; planning, assessment, design or
|
0008| operation of a regional system of juvenile services, including
|
0009| secure detention and nonsecure alternatives, that serves
|
0010| multiple contiguous counties; planning, design, construction,
|
0011| maintenance or operation of multipurpose regional adult jails
|
0012| or juvenile detention facilities; housing of county prisoners
|
0013| or juvenile offenders in any county jail or detention
|
0014| facility; or substance abuse, mental health or other programs
|
0015| for county prisoners or other inmates in county jails or for
|
0016| juvenile offenders in county or regional detention facilities;
|
0017| and
|
0018| (7) furthering or implementing economic
|
0019| development plans and projects as defined in the Local
|
0020| Economic Development Act, and use of not more than the greater
|
0021| of fifty thousand dollars ($50,000) or ten percent of the
|
0022| revenue collected for promotion and administration of or
|
0023| professional services contracts related to implementation of
|
0024| an economic development plan adopted by the governing body
|
0025| pursuant to the Local Economic Development Act and in
|
- 35 -0001| accordance with law.
|
0002| D. An ordinance imposing the county infrastructure
|
0003| gross receipts tax shall not go into effect until after an
|
0004| election is held and a majority of the voters in the county
|
0005| area voting in the election votes in favor of imposing the
|
0006| tax. The governing body shall adopt a resolution calling for
|
0007| an election within seventy-five days of the date the ordinance
|
0008| is adopted on the question of imposing the tax. The question
|
0009| shall be submitted to the voters of the county area as a
|
0010| separate question at a general election or at a special
|
0011| election called for that purpose by the governing body. A
|
0012| special election shall be called, conducted and canvassed in
|
0013| substantially the same manner as provided by law for general
|
0014| elections. If a majority of the voters voting on the question
|
0015| approves the ordinance imposing the county infrastructure
|
0016| gross receipts tax, then the ordinance shall become effective
|
0017| in accordance with the provisions of the County Local Option
|
0018| Gross Receipts Taxes Act. If the question of imposing the
|
0019| county infrastructure gross receipts tax fails, the governing
|
0020| body shall not again propose the imposition of the tax for a
|
0021| period of one year from the date of the election."
|
0022| Section 8. Section 7-20E-9 NMSA 1978 (being Laws 1983,
|
0023| Chapter 213, Section 30, as amended) is amended to read:
|
0024| "7-20E-9. COUNTY GROSS RECEIPTS TAX--AUTHORITY TO IMPOSE
|
0025| RATE--INDIGENT FUND REQUIREMENTS.--
|
- 36 -0001| A. [The] A majority of the members of the
|
0002| governing body of [any] a county may enact an ordinance
|
0003| imposing an excise tax not to exceed a rate of three-eighths
|
0004| of one percent of the gross receipts of any person engaging in
|
0005| business in the county for the privilege of engaging in
|
0006| business in the county. [Any] An ordinance imposing an
|
0007| excise tax pursuant to this section shall impose the tax in
|
0008| independent increments of one-eighth percent, which shall be
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0009| separately denominated as "first one-eighth", "second
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0010| one-eighth" and "third one-eighth", respectively, not to
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0011| exceed an aggregate amount of three-eighths percent.
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0012| B. [This] The tax authorized in Subsection A
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0013| of this section is to be referred to as the "county gross
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0014| receipts tax".
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0015| C. [Any] A class A county with a county
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0016| hospital operated and maintained pursuant to a lease with a
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0017| state educational institution named in Article 12, Section 11
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0018| of the constitution of New Mexico enacting the second [or
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third] one-eighth increment of county gross receipts tax
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0020| shall provide, each year that the tax is in effect, not less
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0021| than one million dollars ($1,000,000) in funds [for each
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additional increment of one-eighth percent enacted], and that
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0023| amount shall be dedicated to the support of indigent patients
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0024| who are residents of that county. Funds for indigent care
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0025| shall be made available each month of each year the tax is in
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- 37 -0001| effect in an amount not less than eighty-three thousand three
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0002| hundred thirty-three dollars thirty-three cents ($83,333.33).
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0003| The interest from the investment of county funds for indigent
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0004| care may be used for other assistance to indigent persons, not
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0005| to exceed twenty thousand dollars ($20,000) for all other
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0006| assistance in any year.
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0007| D. [Any] A county, except a class A county with
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0008| a county hospital operated and maintained pursuant to a lease
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0009| with a state educational institution named in Article 12,
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0010| Section 11 of the constitution of New Mexico, imposing the
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0011| second one-eighth increment of county gross receipts tax shall
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0012| be required to dedicate the entire amount of revenue produced
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0013| by the imposition of the second one-eighth increment for the
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0014| support of indigent patients who are residents of that county.
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0015| [Fifty percent of] The revenue produced by the imposition
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0016| of the third one-eighth increment may be used for general
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0017| purposes. [The requirements of this subsection shall apply
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regardless of the combination or sequence of one-eighth
|
increments enacted.] Any county that has imposed the second
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0020| one-eighth increment or the third one-eighth increment, or
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0021| both, on January 1, 1996 for support of indigent patients in
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0022| the county or [imposes one or both increments] after January
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0023| 1, 1996 imposes the second one-eighth increment or imposes
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0024| the third one-eighth increment and dedicates one-half of that
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0025| increment for county indigent patient purposes shall deposit
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- 38 -0001| the revenue [from the second one-eighth increment, if enacted
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and at least one-half of the third one-eighth increment, if
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enacted] dedicated for county indigent purposes in the
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0004| county indigent hospital claims fund and such revenues shall
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0005| be expended pursuant to the Indigent Hospital and County
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0006| Health Care Act."
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