NMSA 1978, § 7-20E-26 — 7-20E-26

Water and sanitation gross receipts tax; authority to
impose; rate; election; use of revenue.

# A.

An excise tax imposed by a governing body pursuant to this section may be
referred to as the "water and sanitation gross receipts tax". The water and sanitation
gross receipts tax shall be imposed by a governing body as set forth in this section,
contingent upon a majority of the voters voting in an election on the question of whether
to impose a water and sanitation gross receipts tax voting in favor of the imposition.

# B.

Upon receipt of a resolution adopted and submitted by the board of directors of a
water and sanitation district that requests the governing body to impose a water and
sanitation gross receipts tax on behalf of the water and sanitation district, a governing
body shall enact an ordinance imposing a water and sanitation gross receipts tax in that
water and sanitation district. The ordinance shall impose the tax at a rate of one-fourth
percent on a person engaging in business within the area of the county located within
the water and sanitation district for the privilege of engaging in business within that
water and sanitation district within the county.

# C.

The governing body, at the time of enacting an ordinance imposing a water and
sanitation gross receipts tax authorized pursuant to Subsection A of this section, shall
dedicate the revenue only for the operation of the water and sanitation district for which
the tax is imposed. The tax shall be imposed for six years from the date on which the
water and sanitation gross receipts tax goes into effect.

# D.

Within sixty days of the date the ordinance is adopted by the governing body, the
governing body shall adopt a resolution calling for an election on the question of
whether to impose a water and sanitation gross receipts tax. The question shall be
submitted to the voters of the water and sanitation district requesting the county to
impose the tax. A special election shall be called, conducted and canvassed in
substantially the same manner as provided by law for general elections. If a majority of
the voters voting on the question approves the ordinance imposing the water and
sanitation gross receipts tax, then the ordinance shall become effective in accordance
with the provisions of the County Local Option Gross Receipts and Compensating
Taxes Act on the first July 1 following the election approving the imposition of the tax,
except as provided in Subsection E of this section. If the question of imposing the water
and sanitation gross receipts tax fails, a resolution from the board of directors of the
water and sanitation district initiating the request to the county to impose a water and
sanitation gross receipts tax may not again be submitted to the governing body for a
period of one year from the date of the election.

# E.

If the governor declares a state of emergency, or if there is an unforeseen
occurrence that would cause a district'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.

# F.

The proceeds from the water and sanitation gross receipts tax shall be
administered by the governing body and disbursed by the county treasurer to the
appropriate water and sanitation district in amounts and for the purposes authorized in
this section and as set out in the resolution submitted by the board of directors to the
governing body. An agreement shall be entered into between the water and sanitation
district and the governing body that sets out the responsibilities of both parties regarding
administration, distribution and use of the revenue from the water and sanitation gross
receipts tax.