2023 New Mexico Statutes › Chapter 7 - Taxation › Article 20E - County Local Option Gross Receipts and Compensating Taxes › Section 7-20E-9 - County gross receipts tax; authority to impose rate; county health care assistance fund requirements.

A. A majority of the members of the governing body of a county may impose by ordinance an excise tax on the gross receipts of a person engaging in business in the county or the county area. A tax imposed pursuant to this section shall be imposed by the enactment of one or more ordinances enacting any number of increments of one-hundredth percent; provided that the total increments do not exceed the maximum rate provided in Subsections C and D of this section; and provided further that, if at the time of enacting the ordinance the total county gross receipts tax rate is not an even multiple of one-hundredth percent, the county may impose an increment in an amount sufficient to bring the total rate to an even multiple of one-hundredth percent. The governing body may, at the time of enacting the ordinance, dedicate the revenue for any county purpose.
B. The tax authorized by this section is to be referred to as the "county gross receipts tax".
C. The maximum rate of the county gross receipts tax that may be imposed on the gross receipts of any person engaging in business in a county shall not exceed one and twenty-five hundredths percent. Of that one and twenty-five hundredths percent:
(1) a governing body may choose to require an election to impose increments up to a total of one percent; and
(2) the remaining increments, up to a total of twenty-five hundredths percent, shall not go into effect until after an election is held and a majority of the voters in the county voting in the election votes in favor of the tax. Increments approved by voters prior to July 1, 2019 shall be included in the increments approved by the voters, as provided in this paragraph.
D. In addition to the maximum rate that may be imposed on the gross receipts of any person engaging in business in a county, the maximum rate of the county gross receipts tax that may be imposed on the gross receipts of any person engaging in business in a county area shall not exceed one-half percent. Of that one-half percent:
(1) a governing body may choose to require an election to impose increments that total twelve hundredths percent; but
(2) the remaining increments, up to a total of thirty-eight hundredths percent, shall not go into effect until after an election is held and a majority of the voters in the county area voting in the election votes in favor of the tax. Increments approved by voters prior to July 1, 2019 shall be included in the increments approved by the voters, as provided in this paragraph.
E. A class A county with a county hospital operated and maintained pursuant to a lease or operating agreement with a state educational institution named in Article 12, Section 11 of the constitution of New Mexico shall provide not less than one million dollars ($1,000,000) in funds, and that amount shall be dedicated to the support of indigent patients who are residents of that county. Funds for indigent care shall be made available each month of each year the tax is in effect in an amount not less than eighty-three thousand three hundred thirty-three dollars thirty-three cents ($83,333.33). The interest from the investment of county funds for indigent care may be used for other assistance to indigent persons, not to exceed twenty thousand dollars ($20,000) for all other assistance in any year.
F. A county, except a class A county with a county hospital operated and maintained pursuant to a lease or operating agreement with a state educational institution named in Article 12, Section 11 of the constitution of New Mexico, shall be required to dedicate revenue produced by the imposition of a one-eighth percent gross receipts tax increment for the support of indigent patients who are residents of that county. A county that imposed up to two one-eighth percent increments on January 1, 1996 for support of indigent patients in the county or, after January 1, 1996, imposes a one-eighth percent increment and dedicates one-half of that increment for county indigent patient purposes shall deposit the revenue dedicated for county indigent purposes that is transferred to the county in the county health care assistance fund, and such revenues shall be expended pursuant to the Indigent Hospital and County Health Care Act [Chapter 27, Article 5 NMSA 1978].
History:
Laws 1983, ch. 213, § 30; 1986, ch. 20, § 84; 1989, ch. 169, § 1; 1991, ch. 212, § 16; 1978 Comp., § 7-20-3, amended and recompiled as 1978 Comp., § 7-20E-9 by Laws 1993, ch. 354, § 9; 1996, ch. 29, § 1; 1998, ch. 90, § 8; 2004, ch. 110, § 2; 2008, ch. 51, § 3; 2014, ch. 79, § 3; 2019, ch. 274, § 14; 2020, ch. 80, § 12.
ANNOTATIONS
Cross references.
— For class B county property tax levy for providing health care to sick and indigent persons,
see
4-38-17.1 NMSA 1978.
The 2020 amendment,
effective July 1, 2020, provided that increments of the county gross receipts tax shall be imposed in increments of one-hundredths percent; in Subsection A, added "enacting any number of increments of one-hundredth percent; provided that the total increments do not exceed the maximum rate provided in Subsections C and D of this section; and provided further that, if at the time of enacting the ordinance the total county gross receipts tax rate is not an even multiple of one-hundredth percent, the county may impose an increment in an amount sufficient to bring the total rate to an even multiple of one-hundredth percent"; in Subsection C, in the introductory clause, after "county gross receipts tax", added "that may be imposed", in Paragraph C(1), after "increments", deleted "that" and added "up to a", and in Paragraph C(2), added "the remaining"; and in Subsection D, in the introductory clause, added "In addition to the maximum rate that may be imposed on the gross receipts of any person engaging in business in a county", and in Paragraph D(2), after "increments", deleted "totaling" and added "up to a total of".
Temporary provisions.
— Laws 2020, ch. 80, § 13 effective May 20, 2020, provided that an ordinance imposing a local option gross receipts tax authorized by those sections of law that were repealed and consolidated with the municipal gross receipts tax or the county gross receipts tax by Laws 2019, Chapter 274 is deemed to be imposing an equal rate of the municipal gross receipts tax or county gross receipts tax, as appropriate, as was imposed by the ordinance when the ordinance was enacted; provided that the ordinance was in effect on the date of repeal and the ordinance has not been repealed by the governing body. Any dedication of revenue pursuant to the ordinance remains in effect until changed by the governing body; provided that, if the dedication were approved by the electorate, any change to the dedication must also be approved by the electorate.
The 2019 amendment,
effective July 1, 2019, replaced the current seven-sixteenths percent maximum authority for the county-wide gross receipts tax local option with a maximum authority of one and twenty-five hundredths percent, and required any authorization over one percent to be approved by the local voters, and local authorities are authorized to allow local voters to approve any enactments of less than an aggregate one percent; in Subsection A, deleted "Except as provided in Subsection E of this section, a majority of the members of the governing body of a county may enact an ordinance imposing an excise tax not to exceed a rate of seven-sixteenths percent of the gross receipts of any person engaging in business in the county for the privilege of engaging in business in the county. An ordinance imposing an excise tax pursuant to this subsection shall impose the tax in three independent increments of one-eighth percent and one independent increment of one-sixteenth percent, which shall be separately denominated as 'the first one-eighth increment', 'the second one-eighth increment', 'the third one-eighth increment' and 'the one-sixteenth increment', respectively, not to exceed an aggregate amount of seven-sixteenths percent" and added the remainder of the subsection; added new Subsections C and D and redesignated former Subsections C and D as Subsections E and F respectively; in Subsection E, after "New Mexico", deleted "enacting the second one-eighth increment of county gross receipts tax"; in Subsection F, after "New Mexico", deleted "imposing the second one-eighth increment of county gross receipts tax", after "residents of that county", deleted "The revenue produced by the imposition of the third one-eighth increment and the one-sixteenth increment may be used for general purposes. Any" and added "A", after "county that imposed", deleted "the second one-eighth increment or the third" and added "up to two", after "1996, imposes", deleted "the second one-eighth increment or imposes the third"; and deleted former Subsection E.
The 2014 amendment,
effective March 12, 2014, authorized a county, except a class A county with a state educational institution, to impose an additional increment of county gross receipts tax for three years; in the catchline, after "rate", deleted "indigent" and added "county health care assistance"; in Subsection A, in the first sentence, added "Except as provided in Subsection E of this section", in the second sentence, after "pursuant to this", deleted "section" and added "subsection"; in Subsection B, after "authorized", deleted "in Subsection A of" and added "by"; in Subsection C, in the first sentence, after "pursuant to a lease", added "or operating agreement"; in Subsection D, in the first sentence, after "pursuant to a lease", added "or operating agreement", and in the third sentence, after "transferred to the county", deleted "after the distribution pursuant to Subsection C of Section 7-1-6.13 and Subsection C of Section 7-20E-7 NMSA 1978", and after "in the county", deleted "indigent hospital claims" and added "health care assistance"; and added Subsection E.
The 2008 amendment,
effective February 28, 2008, in Subsection D, required counties to deposit into the county indigent hospital claims fund revenue dedicated for county indigent purposes that is transferred to the county after the distribution pursuant to Subsection C of 7-1-6.13 NMSA 1978 and Subsection C of 7-20E-7 NMSA 1978.
The 2004 amendment,
effective July 1, 2004, amended Subsection A to change "three-eighths of one percent" to "seven-sixteenths percent" and to provide for an increment of one-sixteenth and amended Subsection D to add "one-sixteenth increment" after "one-eighth increment".
The 1998 amendment,
effective May 20, 1998, in Subsection B, inserted "authorized in Subsection A of this section" at the beginning; in Subsection C in the first sentence, deleted 'or third" following "second" and "for each additional increment of one-eighth percent enacted" following "in funds"; in Subsection D, deleted "Fifty percent of" at the beginning of the second sentence, deleted the former third sentence, rewrote the last sentence and made minor stylistic changes throughout the section.
The 1996 amendment,
effective May 15, 1996, made a stylistic change in Subsection A, rewrote the second sentence and added the fourth sentence in Subsection D, and deleted former Subsection E relating to counties that provided for indigent care in an amount equal to or greater than the amount anticipated in Subsection D.
The 1993 amendment,
effective July 1, 1993, renumbered this section, deleted "percent" following "one-eighth" throughout the section; designated the former final sentence of Subsection A as Subsection B; redesignated former Subsection B as Subsection C; deleted former Subsection C, stating that imposition of the county gross receipts tax shall not be subject to referendum; and deleted former Subsection F, pertaining to the effective date of any ordinance enacted under the provisions of Subsection A.
The 1991 amendment,
effective July 1, 1991, substituted "independent increments of one-eighth percent which shall be separately denominated as 'first one-eighth', 'second one-eighth' and 'third one-eighth', respectively" for "any number of increments of one-eighth percent" in the second sentence in Subsection A; in Subsections B and D, inserted "with a county hospital operated and maintained pursuant to a lease with a state educational institution named in Article 12, Section 11 of the constitution of New Mexico" and deleted "in excess of one-eighth percent" following "gross receipts tax" in the first sentence; in Subsection B, inserted "the second or third one-eighth percent increment of " in the first sentence, inserted "county" preceeding "funds" in the final sentence and made a related stylistic change; in Subsection D, substituted "the second one-eighth percent increment" for "an increment" in the first sentence, inserted "one-eighth percent" in the final sentence and made a minor stylistic change; in Subsection E, substituted "the first one-eighth percent increment" for "one-eighth percent" in three places; and deleted former Subsection G, relating to counties that had lawfully imposed a county sales tax pursuant to the County Sales Tax Act prior to the effective date of the 1986 act.