NMSA 1978, § 7-19-12 — 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 votes in the affirmative on each question, 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 fails to approve any of the
questions, 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.

Except as provided in Subsection G of this section, any ordinance enacted under
the provisions of this section shall include an effective date of the first July 1 after the
expiration of at least three 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
department 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 the first July
1 after the expiration of at least three months from the date the ordinance is repealed by
the governing body.

# G.

If the governor declares a state of emergency, or if there is an unforeseen
occurrence that would cause a municipality's reserves to drop below the amount
required by the local government division of the department of finance and
administration, as certified by the division, an ordinance imposing a tax or an increment
of a tax may become effective on the first January 1 after the expiration of at least three
months after such a declaration or event and notification to the department.