NMSA 1978, § 7-19-18 — 7-19-18

Supplemental municipal gross receipts tax; use of
proceeds; restriction.

# A.

The proceeds from the supplemental municipal gross receipts tax shall be
deposited in a special improvement account of the municipality and shall be used only
for:
(1) the payment of the principal of, interest on, any prior redemption
premiums due in connection with and other expenses related to the supplemental
municipal gross receipts bonds issued pursuant to the Supplemental Municipal Gross
Receipts Tax Act;
(2) the funding of any reserves and other accounts in connection with such
bonds;
(3) refunding bonds; and
(4) to the extent not needed for those purposes, the improvement of the
municipality's water system.

# B.

When any issue of supplemental municipal gross receipts bonds is fully paid, the
supplemental municipal gross receipts tax shall cease to be imposed for that issue, but
may continue to be imposed for bonds enacted and approved pursuant to Section 7-19-
12 NMSA 1978 and thereafter issued, or for refunding bonds issued pursuant to Section
4 [7-19-17.1 NMSA 1978] of this 1997 act. Any money remaining in a special
improvement account after the obligations for supplemental municipal gross receipts
bonds and refunding bonds, are fully paid may be transferred to any other fund of the
municipality.