2023 New Mexico Statutes › Chapter 7 - Taxation › Article 19 - Supplemental Municipal Gross Receipts Tax › Section 7-19-12 - Authorization to impose supplemental municipal gross receipts tax; authorization for issuance of supplemental municipal gross receipts bonds; election required.

A. The majority of the members elected to the governing body of a municipality may enact an ordinance imposing an excise tax on any person engaging in business in the municipality for the privilege of engaging in business in the municipality. This tax is to be referred to as the "supplemental municipal gross receipts tax". The rate of the tax shall not exceed one percent of the gross receipts of the person engaging in business and shall be imposed in one-fourth percent increments if less than one percent.
B. The governing body of a municipality enacting an ordinance imposing the tax authorized in Subsection A of this section shall submit the question of imposing such tax and the question of the issuance of supplemental municipal gross receipts bonds in an amount not to exceed nine million dollars ($9,000,000), for which the revenue from the supplemental municipal gross receipts tax is dedicated, to the qualified electors of the municipality at a regular or special election.
C. The questions referred to in Subsection B of this section shall be submitted to a vote of the qualified electors of the municipality as two separate ballot questions which shall be substantially in the following form:
(1) "Shall the municipality be authorized to issue supplemental municipal gross receipts bonds in an amount of not exceeding __________________ dollars for the purpose of constructing and equipping and otherwise acquiring a municipal water supply system?
For ____________ Against ____________"; and
(2) "Shall the municipality impose an excise tax for the privilege of engaging in business in the municipality which shall be known as the "supplemental municipal gross receipts tax" and which shall be imposed at a rate of ____________ percent of the gross receipts of the person engaging in business, the proceeds of which are dedicated to the payment of supplemental municipal gross receipts bonds?
For ____________ Against ____________".
D. Only those voters who are registered electors who reside within the municipality shall be permitted to vote on these two questions. The procedures for conducting the election shall be substantially the same as the applicable provisions in Sections 3-30-1, 3-30-6 and 3-30-7 NMSA 1978 relating to municipal debt.
E. If at an election called pursuant to this section a majority of the voters voting on each of the two questions vote in the affirmative on each such question, then the ordinance imposing the supplemental municipal gross receipts tax shall be approved. If at such election a majority of the voters voting on such questions fail to approve any of the questions, then the ordinance imposing the tax shall be disapproved and the questions required to be submitted by Subsection B of this section shall not be submitted to the voters for a period of one year from the date of the election.
F. Any ordinance enacted under the provisions of this section shall include an effective date of either July 1 or January 1, whichever date occurs first after the expiration of at least five months from the date of the election. A certified copy of any ordinance imposing a supplemental municipal gross receipts tax shall be mailed to the division within five days after the ordinance is adopted by the approval by the electorate. Any ordinance repealing the imposition of a tax under the provisions of the Supplemental Municipal Gross Receipts Tax Act shall become effective on either July 1 or January 1, after the expiration of at least five months from the date the ordinance is repealed by the governing body.
G. Nothing in this section is intended to or does alter the effectiveness or validity of any actions taken in accordance with Subsection G of Section 80 of Chapter 20 of Laws 1986.
History:
Laws 1979, ch. 397, § 3; 1980, ch. 106, § 2; 1986, ch. 6, § 1; 1986, ch. 20, § 80; 1997, ch. 219, § 2.
ANNOTATIONS
Compiler's notes.
— Laws 1986, ch. 20, § 80, referred to in Subsection G, amended this section. The reference to Subsection G of that law is a reference to Subsection G of this section as it read prior to the 1997 amendment by Laws 1997, ch. 219, § 2, when Subsection G provided that no ordinance would be effective under this article unless the ordinance is enacted and the required election is held prior to February 1, 1986.
The 1997 amendment,
effective June 20, 1997, deleted "authorization removed" at the end of the section heading, deleted "registered" preceding "electors" near the end of Subsection B and in the introductory paragraph of Subsection C, and made a minor stylistic change in Subsection C, inserted "municipal" preceding "gross receipts tax" in the first sentence of Subsection E, and rewrote Subsection G.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
68 Am. Jur. 2d Sales and Use Taxes § 1 et seq.