us-nm/stat
NMSA 1978, § 7-19D-16 — Municipal higher education facilities gross receipts tax
A.
The majority of the members of the governing body of an eligible municipality
may impose by ordinance an excise tax at a rate not to exceed one-fourth of one
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 increments of one-
sixteenth of one percent not to exceed an aggregate rate of one-fourth of one percent.
The tax shall be imposed for a period of not more than twenty years from the effective
date of the ordinance imposing the tax.
B.
The tax imposed pursuant to this section may be referred to as the "municipal
higher education facilities gross receipts tax".
C.
The governing body, at the time of enacting an ordinance imposing a rate of tax
authorized in Subsection A of this section, shall dedicate the revenue only for:
(1) acquisition, construction, renovation or improvement of facilities of a four-
year post-secondary public educational institution located in the municipality and
acquisition of or improvements to land for those facilities; or
(2) payment of municipal higher education facilities gross receipts tax revenue
bonds issued pursuant to Chapter 3, Article 31 NMSA 1978.
D.
An ordinance imposing any increment of the municipal higher education facilities
gross receipts tax shall not go into effect until after an election is held and a majority of
the voters of the municipality voting in the election votes in favor of imposing the tax.
The governing body shall adopt a resolution calling for an election on the question of
imposing the tax at the next regular municipal election. The question shall be submitted
to the voters of the municipality as a separate question. If a majority of the voters voting
on the question approves the ordinance imposing the municipal higher education
facilities 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 municipal higher education facilities gross receipts tax fails, the governing
body shall not again propose the imposition of any increment of the tax for a period of
one year from the date of the election.
E.
For the purposes of this section, "eligible municipality" means a municipality that
has a population greater than fifty thousand according to the most recent federal
decennial census and that is located in a class B county having a net taxable value for
rate-setting purposes for the 2006 property tax year or any subsequent year of more
than two billion dollars ($2,000,000,000).
Source: official text