NMSA 1978, § 7-19D-14 — 7-19D-14

Quality of life gross receipts tax; authority to impose;
ordinance requirements; use of revenue; election.

# A.

Prior to January 1, 2016, the majority of the members of the governing body of a
municipality may enact an ordinance imposing an excise tax at a rate not to exceed
one-fourth percent of the gross receipts of a person engaging in business in the
municipality for the privilege of engaging in business. The tax may be imposed in one or
more increments of one-sixteenth percent not to exceed an aggregate rate of one-fourth
percent. The tax shall be imposed for a period of not more than ten years from the
effective date of the ordinance imposing the tax. Having enacted an ordinance imposing
the tax prior to January 1, 2016 pursuant to the provisions of this section, the governing
body may enact subsequent ordinances for succeeding periods of not more than ten
years; provided that each ordinance meets the requirements of this section and of the
Municipal Local Option Gross Receipts Taxes Act. The tax imposed pursuant to the
provisions of this section may be referred to as the "quality of life gross receipts tax".

# B.

The governing body, at the time of enacting an ordinance imposing the quality of
life gross receipts tax, shall dedicate the revenue to cultural programs and activities
provided by a local government and to cultural programs, events and activities provided
by contract or operating agreement with nonprofit or publicly owned cultural
organizations and institutions.

# C.

An ordinance imposing any increment of the quality of life gross receipts tax shall
not go into effect until after an election is held and a majority of the voters in the
municipality voting in the election votes in favor of imposing the tax. The governing body
shall adopt a resolution calling for an election within ninety days of the date the
ordinance is adopted on the question of imposing the tax. The question may be
submitted to the voters as a separate question at a general election or at a special
election called for that purpose by the governing body. A special election shall be called,
conducted and canvassed in substantially the same manner as provided by law for
general elections. In any election held, the ballot shall clearly state the purpose to which
the revenue will be dedicated pursuant to this section. If a majority of the voters voting
on the question approves the ordinance imposing the quality of life gross receipts tax,
the ordinance shall become effective in accordance with the provisions of the Municipal
Local Option Gross Receipts Taxes Act. If the question of imposing the quality of life
gross receipts tax fails, the governing body shall not again propose the imposition of the
tax for a period of one year from the date of the election.

# D.

The quality of life gross receipts tax revenue shall be used to meet the following
goals: promoting and preserving cultural diversity; enhancing the quality of cultural
programs and activities; fostering greater access to cultural opportunities; promoting
culture in order to further economic development within the municipality; and supporting
programs, events and organizations with direct, identifiable and measurable public
benefit to residents of the municipality. It is the objective of the quality of life gross
receipts tax that the revenue from the tax be used to expand and sustain existing
programs and to develop new programs, events and activities, rather than to replace
other funding sources for existing programs, events and activities.

# E.

The governing body of a municipality that imposes the quality of life gross
receipts tax shall, within sixty days of the election approving the imposition of the tax,
appoint a municipal cultural advisory board consisting of between nine and fifteen
members. Persons appointed to the board shall be residents of the municipality who are
knowledgeable about the activities eligible for quality of life tax funding. The members of
the board shall be appointed for fixed terms and shall not be removed during their terms
except for malfeasance. The terms of the initial board members shall be staggered so
that one-third of the members are appointed for one-year terms, one-third are appointed
for two-year terms and one-third are appointed for three-year terms. Subsequent
appointments to the board shall be for three-year terms. If a vacancy on the board
occurs, the governing body shall appoint a replacement member for the remainder of
the unexpired term. A board member shall not serve for more than two consecutive
terms.

# F.

The municipal cultural advisory board shall have the responsibility of overseeing
the distribution of the quality of life gross receipts tax revenue for the goals listed in
Subsection D of this section. The board shall:
(1) biennially submit recommendations to the governing body for expenditures
of revenue from the quality of life gross receipts tax that are allocated pursuant to this
section through contracts for services with appropriate organizations and institutions;
(2) establish and publicize the necessary qualifications for organizations and
institutions to receive quality of life gross receipts tax funding; and
(3) develop guidelines and procedures for applying for funding through a
request for proposals process and the criteria by which contracts will be awarded. The
evaluation process shall include a public review component.

# G.

The municipal cultural advisory board shall establish reporting requirements for
recipients of the quality of life gross receipts tax revenue. The board shall provide to the
governing body an annual evaluation of the use of revenue from the quality of life gross
receipts tax to ensure that it is meeting the goals listed in Subsection D of this section.

# H.

Every four years, the municipal cultural advisory board shall review and revise as
necessary:
(1) the guidelines and procedures for applying for funding; and
(2) the criteria by which applications for funding will be evaluated.

# I.

As used in this section:
(1) "cultural organizations and institutions" means organizations or institutions
that have as a primary purpose the advancement or preservation of zoology, museums,
library sciences, art, music, theater, dance, literature or the humanities; and
(2) "municipality" means an incorporated municipality except for an
incorporated municipality with a population in excess of two hundred fifty thousand
according to the most recent federal decennial census.