NMSA 1978, § 7-19D-17 — 7-19D-17

Federal water project gross receipts tax; authorization;
use of revenue; referendum.

# A.

A majority of the members of 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. The rate of the tax shall not
exceed one-fourth percent of the gross receipts of the person engaging in business. An
ordinance enacting the tax authorized by this section is subject to a positive
referendum.

# B.

The tax imposed pursuant to this section may be referred to as the "federal water
project gross receipts tax".

# C.

The governing body of a municipality, at the time of enacting an ordinance
imposing the rate of the tax authorized in this section, shall dedicate the revenue for the
repayment of loan obligations to the federal government for the construction, expansion,
operation and maintenance of a water delivery system and for the expansion, operation
and maintenance of that water delivery system after the loan obligation to the federal
government is retired or repaid. The revenue from the federal water project gross
receipts tax shall not be dedicated to repay revenue bonds or any other form of bonds.

# D.

An ordinance imposing the federal water project gross receipts tax shall not go
into effect until 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 within seventy-five days of the date the ordinance is
adopted on the question of imposing the tax. The question shall be submitted to the
voters of the municipality as a separate question at a regular local election or at a
special election called for that purpose by the governing body. An election shall be
called, conducted and canvassed as provided in the Local Election Act [Chapter 1,
Article 22 NMSA 1978]. If a majority of the voters voting on the question approves the
ordinance imposing the federal water project gross receipts tax, then the ordinance shall
become effective on July 1 in accordance with the provisions of the Municipal Local
Option Gross Receipts and Compensating Taxes Act. If the question of imposing the
federal water project 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.

# E.

As used in this section, "municipality" means an incorporated municipality that
has a population pursuant to the most recent federal decennial census of greater than
twenty thousand but less than twenty-five thousand and is located in a class B county.