New Mexico SB 396: LOCAL GOV'T TAX DISTRIBUTION DEFINITIONS

Bill Text

SB0396 

SENATE BILL 396

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

Stuart Ingle

AN ACT

RELATING TO TAXATION; AMENDING THE DEFINITION OF "AVERAGE 
DISTRIBUTION OR TRANSFER AMOUNT" IN SECTION 7-1-6.15 NMSA 1978 
(BEING LAWS 1983, CHAPTER 211, SECTION 20, AS AMENDED BY LAWS 
2015, CHAPTER 89, SECTION 1 AND BY LAWS 2015, CHAPTER 100, 
SECTION 1).

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

 SECTION 1. Section 7-1-6.15 NMSA 1978 (being Laws 1983, 
Chapter 211, Section 20, as amended by Laws 2015, Chapter 89, 
Section 1 and by Laws 2015, Chapter 100, Section 1) is amended 
to read:

 "7-1-6.15. ADJUSTMENTS OF DISTRIBUTIONS OR TRANSFERS TO 
MUNICIPALITIES OR COUNTIES.--

 A. The provisions of this section apply to:

 (1) any distribution to a municipality 
pursuant to Section 7-1-6.4, 7-1-6.36 or 7-1-6.46 NMSA 1978;

 (2) any transfer to a municipality with 
respect to any local option gross receipts tax imposed by that 
municipality;

 (3) any transfer to a county with respect to 
any local option gross receipts tax imposed by that county;

 (4) any distribution to a county pursuant to 
Section 7-1-6.16 or 7-1-6.47 NMSA 1978;

 (5) any distribution to a municipality or a 
county of gasoline taxes pursuant to Section 7-1-6.9 NMSA 1978;

 (6) any transfer to a county with respect to 
any tax imposed in accordance with the Local Liquor Excise Tax 
Act;

 (7) any distribution to a county from the 
county government road fund pursuant to Section 7-1-6.26 NMSA 
1978;

 (8) any distribution to a municipality of 
gasoline taxes pursuant to Section 7-1-6.27 NMSA 1978; and

 (9) any distribution to a municipality of 
compensating taxes pursuant to Section 7-1-6.55 NMSA 1978.

 B. Before making a distribution or transfer 
specified in Subsection A of this section to a municipality or 
county for the month, amounts comprising the net receipts shall 
be segregated into two mutually exclusive categories. One 
category shall be for amounts relating to the current month, 
and the other category shall be for amounts relating to prior 
periods. The total of each category for a municipality or 
county shall be reported each month to that municipality or 
county. If the total of the amounts relating to prior periods 
is less than zero and its absolute value exceeds the greater of 
one hundred dollars ($100) or an amount equal to twenty percent 
of the average distribution or transfer amount for that 
municipality or county, then the following procedures shall be 
carried out:

 (1) all negative amounts relating to any 
period prior to the three calendar years preceding the year of 
the current month, net of any positive amounts in that same 
time period for the same taxpayers to which the negative 
amounts pertain, shall be excluded from the total relating to 
prior periods. Except as provided in Paragraph (2) of this 
subsection, the net receipts to be distributed or transferred 
to the municipality or county shall be adjusted to equal the 
amount for the current month plus the revised total for prior 
periods; and

 (2) if the revised total for prior periods 
determined pursuant to Paragraph (1) of this subsection is 
negative and its absolute value exceeds the greater of one 
hundred dollars ($100) or an amount equal to twenty percent of 
the average distribution or transfer amount for that 
municipality or county, the revised total for prior periods 
shall be excluded from the distribution or transfers and the 
net receipts to be distributed or transferred to the 
municipality or county shall be equal to the amount for the 
current month.

 C. The department shall recover from a municipality 
or county the amount excluded by Paragraph (2) of Subsection B 
of this section. This amount may be referred to as the 
"recoverable amount".

 D. Prior to or concurrently with the distribution 
or transfer to the municipality or county of the adjusted net 
receipts, the department shall notify the municipality or 
county whose distribution or transfer has been adjusted 
pursuant to Paragraph (2) of Subsection B of this section:

 (1) that the department has made such an 
adjustment, that the department has determined that a specified 
amount is recoverable from the municipality or county and that 
the department intends to recover that amount from future 
distributions or transfers to the municipality or county; 

 (2) that the municipality or county has ninety 
days from the date notice is made to enter into a mutually 
agreeable repayment agreement with the department;

 (3) that if the municipality or county takes 
no action within the ninety-day period, the department will 
recover the amount from the next six distributions or transfers 
following the expiration of the ninety days; and

 (4) that the municipality or county may 
inspect, pursuant to Section 7-1-8.9 NMSA 1978, an application 
for a claim for refund that gave rise to the recoverable 
amount, exclusive of any amended