2023 New Mexico Statutes › Chapter 7 - Taxation › Article 24 - Municipal and County Gross Receipts Tax on Liquor › Section 7-24-1 - License tax imposed by municipalities.

Municipalities within or composing local option districts may, by duly adopted ordinance, impose an annual, nonprohibitive municipal license tax upon the privilege of persons holding state licenses under the provisions of the Liquor Control Act [60-3A-1 NMSA 1978 et seq.] to operate within such municipalities as retailers, dispensers, canopy licensees, restaurant licensees or club licensees. The amount of the license tax, which shall not exceed two hundred fifty dollars ($250), and the dates and manner of payment shall be fixed on or before June 1 of each year by the ordinance imposing the tax. In case any municipality permits the payment in installments, no bond shall be required to secure the payment of the deferred installments, but the remedy for the collection shall be that provided in Section 7-24-3 NMSA 1978.
History:
Laws 1939, ch. 236, § 1103; 1941 Comp., § 61-402; 1953 Comp., § 46-4-2; Laws 1969, ch. 163; 1981, ch. 39, § 124; 1990, ch. 76, § 1; 1993, ch. 68, § 1.
ANNOTATIONS
Cross references.
— For municipal local option gross receipts tax generally,
see
7-19D-1 NMSA 1978 et seq.
For state licensing requirements relating to alcoholic beverages generally,
see
60-3A-1 NMSA 1978 et seq.
The 1993 amendment,
effective July 1, 1993, deleted the Subsection A designation; deleted "Except as provided in Subsection B of this section" at the beginning; substituted "two hundred fifty dollars ($250)" for "one thousand dollars ($1,000)" in the second sentence; and deleted former Subsection B, pertaining to allocation of a portion of the license tax for purposes of funding a home free program to provide free rides home when requested by intoxicated persons.
The 1990 amendment,
effective March 2, 1990, designated the existing language as Subsection A; added Subsection B; and, in Subsection A, added "Except as provided in Subsection B of this section" at the beginning and made minor stylistic changes.
Section empowers municipalities
by ordinance to impose an annual license tax upon the privilege of persons holding state licenses to operate within a municipality as retailers, dispensers or clubs.
Sunset Package Store, Inc. v. City of Carlsbad
, 1968-NMSC-105, 79 N.M. 260, 442 P.2d 572.
Tax imposed by the ordinance is a privilege tax
imposed on a certain class of persons for the privilege of carrying on businesses for which a license is required.
Sunset Package Store, Inc. v. City of Carlsbad
, 1968-NMSC-105, 79 N.M. 260, 442 P.2d 572.
Section does not require adoption of new ordinance
each year in order to impose a valid license tax.
Eddie's Inferno, Inc. v. City of Albuquerque
, 1968-NMSC-155, 79 N.M. 512, 445 P.2d 389.
Amount, date and manner of payment fixed by ordinance
remain from year to year until such time as ordinance is modified or repealed by an ordinance of the legislative body enacting the same.
Sunset Package Store, Inc. v. City of Carlsbad
, 1968-NMSC-105, 79 N.M. 260, 442 P.2d 572.
Maximum tax rate applicable to preexisting ordinances.
— The City of Albuquerque was without authority to impose or collect any liquor license tax over $1,000 (now $250) after July 1, 1981, the effective date of the amendment of this section limiting such license taxes, notwithstanding the fact that an ordinance providing for a higher tax was enacted prior to July 1, 1981.
Waksman v. City of Albuquerque
, 1984-NMSC-114, 102 N.M. 41, 690 P.2d 1035.
Am. Jur. 2d, A.L.R. and C.J.S. references. —
45 Am. Jur. 2d Intoxicating Liquors § 208.
Effect of state regulation of liquor sales on municipal power to impose occupation license or tax for revenue, 6 A.L.R.2d 737.
48 C.J.S. Intoxicating Liquors § 91.