Chapter 37 TAXATION

CHAPTER 37
TAXATION

Section

37.03 Municipal infrastructure gross receipts tax

37.04 Environmental services gross receipts tax

37.01 GROSS RECEIPTS TAX.

(A) There is imposed on any person engaged in business in this municipality, for the privilege of engaging in business in this municipality, an excise tax equal to 1.25% of the gross receipts reported or required to be reported by the person pursuant to the New Mexico Gross Receipts and Compensating Tax Act, NMSA §§ 7-9-1 et seq., as it now exists or as amended. The tax imposed under this section is pursuant to the Municipal Gross Receipts Tax Act as it now exists or as amended and shall be known as the “Municipal Gross Receipts Tax.”

(B) This section hereby adopts by reference all definitions, exemptions and deductions contained in the Gross Receipts and Compensating Tax Act, NMSA §§ 7-9-1 et seq., as it now exists or as amended.

(1) The transmission of messages by wire or other means from one point within the municipality to another point outside the municipality;

(2) Transporting persons or property for hire by railroad, motor vehicle, air transportation or any other means from one point within the municipality to another point outside the municipality; or

(3) A business located outside the boundaries of a municipality on land owned by that municipality for which a gross receipts tax distribution is made pursuant to NMSA § 7-1-6.4(A).

(D) A portion of the revenue derived from the imposition of this special municipal gross receipts tax will be used for the purpose listed.

(Ord. 81-020; Am. Ord. 81-021; Am. Ord. 82-059; Am. Ord. 91-025; Am. Ord. 85-133)

37.02 LODGER’S TAX.

(A) This section shall be known as and may be cited as the “lodger’s tax section.” (’87 Code, § 7-8-1)

(B) The purpose of this section is to impose a tax which will be borne by persons using commercial lodging accommodations, which tax will provide revenues for the purpose of advertising, publicizing and promoting facilities authorized in subsection (M) of this section, tourist attractions, and acquisition, construction and maintenance of tourist attractions and recreational facilities. (’87 Code, § 7-8-2)

(C) For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning:

BOARD. The Advisory Board established herein to make recommendations to the governing body, keep complete minutes of its proceedings, and submit its recommendations, correspondence and other pertinent documents to the governing body.

GROSS TAXABLE RENT. The total amount of rent paid for lodging, not including the state gross receipts tax or local sales tax.

LODGING. The transaction of furnishing rooms or other accommodations by a vendor to a vendee who, for a rent, uses, possesses or has the right to use or possess any room or rooms or the units of accommodations in or at a taxable premises.

LODGINGS. The rooms or other accommodations furnished by a vendor to a vendee by a taxable service of lodgings.

OCCUPANCY TAX. The tax on lodging authorized by this section.

PERSON. A corporation, firm, other body corporate, partnership, association or individual, includes an executor, administrator, trustee, receiver or other representative appointed according to law and acting in a representative capacity, but does not include the United States of America, the state, any corporation, department, instrumentality or agency of the federal government, or any political subdivision of the state.

RENT. The consideration received by a vendor in money, credits, property or other consideration valued in money for lodgings subject to an occupancy tax authorized herein.

TAXABLE PREMISES. A hotel, motel, or other premises used for lodging that is not the vendee’s household or primary residence.

TEMPORARY LODGING. Lodgings for the purpose of housing a vendee within proximity of the vendee’s employment or job location.

TOURIST. A person who travels for the purpose of business, pleasure or culture to a municipality or county imposing an occupancy tax.

TOURIST-RELATED EVENTS. Events that are planned for, promoted to and attended by tourists.

TOURIST-RELATED FACILITIES AND ATTACTIONS. Facilities and attractions that are intended to be used by or visited by tourists.

TOURIST-RELATED TRANSPORTATION SYSTEMS. Systems that provide transportation for tourists to and from tourist-related facilities and attractions and tourist-related events.

TREASURER. The Treasurer of the city.

VENDEE. A natural person to whom lodgings are furnished in the exercise of the taxable service of lodging.

VENDOR. A person furnishing lodgings in the exercise of the taxable service of lodging.

(’87 Code, § 7-8-3)

(D) There is hereby imposed an occupancy tax of revenues of 5% of gross taxable rent for lodging within the municipality paid to vendors. (’87 Code, § 7-8-4)

(E)(1) No vendor shall engage in the business of providing lodging in the city who has not first obtained a license as provided in this section.

(2) Applicants for a vendor’s license shall submit an application to the Treasurer stating:

(a) The name of the vendor including identification of any person, as defined in this section, who owns or operates or both owns and operates a place of lodging, the name or trade names under which vendor proposes to do business, and the post office address thereof;

(b) A description of the facilities, including the number of rooms and the usual schedule of rates therefor;

(c) A description of other facilities provided by vendor or others to users of the lodgings such as restaurant, bar, cleaning, laundry, courtesy car, stenographic, tailor or others, and a statement identifying the license issued, to whom issued, the authority issuing, and the period for which issued and if applicable, also the identification number provided by the Bureau of Revenue of the state;

(d) The nature of the business practices of the vendor and to what extent, if any, his business is exempt from the lodger’s tax; and

(e) Other information reasonably necessary to effect a determination of eligibility for the license.

(3) The Treasurer shall review applications for license within 10 days of receipt thereof and grant the license in due course if the applicant is doing business subject to the lodger’s tax.

(4) If the Treasurer finds the applicant not exempt under the terms of this section, the Treasurer shall, not more than ten days after receipt of the application, advise the applicant of the decision and give the reasons therefor.

(5) An applicant who is dissatisfied with the decision of the Treasurer may appeal the decision to the governing body by written notice of appeal to the City Clerk within 15 days of the date of the decision of the Treasurer on the application. The matter shall be referred to the governing body for hearing at a regular or special meeting in the usual course of business. The City Clerk shall notify the appellant of the hearing at least ten days prior to the meeting of the governing body, by certified mail, return receipt requested, and advertise notice of the meeting at least ten days prior to the meeting of the governing body. The decision of the governing body made thereof shall be expressed in writing and be communicated in the same manner as the decision of the Treasurer is transmitted. The action of the governing body shall be deemed final.

(6) If the governing body finds for the applicant, the Treasurer shall issue the appropriate license or other notice conforming to the decision made by the governing body.

(’87 Code, § 7-8-5)

(F) The occupancy tax shall not apply:

(1) If a vendee:

(a) Has been a permanent resident of the taxable premises for a period of at least 30 consecutive days, unless those premises are temporary lodging; or

(b) Enters into or has entered into a written agreement for lodging at the taxable premises for a period of at least 30 consecutive days, unless those premises are temporary lodging;

(2) If the rent paid by a vendee is less than $2 a day;

(3) To lodging accommodations at institutions of the federal government, the state or any political subdivision thereof;

(4) To lodging accommodations at religious, charitable, educational or philanthropic institutions, including without limitation the accommodations at summer camps operated by the institutions;

(5) To clinics, hospitals or other medical facilities;

(6) To privately owned or operated convalescent homes, or homes for the aged, infirm, indigent or chronically ill.

(’87 Code, § 7-8-6)

(G)(1) Every vendor providing lodgings shall collect the tax thereon on behalf of the city and shall act as a trustee therefor.

(2) The tax shall be collected from vendees and shall be charged separately from the rent fixed by the vendor for the lodgings.

(3) Each vendor licensed under this section shall be liable to the city for the tax provided herein on the rent paid for lodging at his respective place of business.

(4) Each vendor shall make a report by the twenty-fifth day of each month, on forms provided by the Treasurer, of the receipts for lodging in the preceding calendar month, and shall remit the proceeds of the lodger’s tax to the city and include sufficient information to enable the city to audit the report and shall be verified on an oath by the vendor.

(’87 Code, § 7-8-7)

(H) Vendor shall maintain adequate records of facilities subject to the tax and of proceeds received for the use thereof. The records shall be maintained in the city, and shall be open to the inspection of the city during reasonable hours and shall be retained for three years. (’87 Code, § 7-8-8)

(I)(1) If vendor makes a return as required by this section without paying the tax then due, he shall be liable for the tax and a penalty equal to 10% thereof, but not less than $10 penalty in addition to the tax, without notice from the city with regard thereto. Any penalty so assessed shall be added to the principal amount of tax due; the principal amount of tax due shall then accrue interest at the rate of 1% per month. This represents an annual percentage rate of 12%. Interest shall be assessed 15 days after receipt of the return, and shall be computed from the date of receipt. The Treasurer will give the delinquent vendor written notice of the estimated tax, penalty and interest, which notice shall be mailed to the vendor’s local address.

(2) If any vendor neglects or refuses to make a return and pay the tax as required by this section, the Treasurer or designee shall make an estimate based upon an examination of the vendor’s books and records, or upon any information in its possession, or that may come into its possession, of the amount of the rent of the delinquent vendor, for the period with respect to which vendor has failed to make return, and upon the basis of the estimated amount shall compute and assess the tax payable by the delinquent vendor, adding to the sum thus arrived at the penalty equal to 10% thereof, but not less than $10.

(3) If payments are not received within 15 days of the mailing of the notice, the Treasurer may bring an action in law or equity in a court of law for the collection of any amounts due, including without limitation, penalties thereon, interest on the unpaid principal balance at the rate of 1% per month. This represents an annual percentage rate of 12%. If the city attempts collection through an attorney or the City Attorney for any purpose with regard to this section, the vendor shall be liable to the city for all costs, fees paid to the attorney or City Attorney, and all other expenses incurred in connection therewith. Any sums so paid to an attorney or the City Attorney, and all costs and other expenses, shall accrue interest at the same rate, and in the same manner, as interest assessed on the tax-plus-penalty, and the vendor shall be liable to the city therefor. Interest shall be computed from the date of payment to the attorney or City Attorney.

(4) The amount of any unpaid balance, plus penalties and interest as stated above, shall constitute a lien on the subject property which, at the city’s option, may be foreclosed pursuant to NMSA § 3-36-6.

(5) Under process or order of court, no person shall sell property of a vendor without first ascertaining from the City Treasurer the amount of any occupancy tax due the municipality. Subject to the United States Bankruptcy Code, any occupancy tax due the municipality shall be paid from the proceeds of the sale before payment is made to any judgment creditor or any other person with a claim on the proceeds of the sale.

(’87 Code, § 7-8-9)

(J) If any person believes he has made payment of any lodger’s tax in excess of that for which he was liable, he may claim a refund thereof by directing to the Treasurer, no later than 90 days from the date payment was made, a written claim for refund. Every claim for refund shall state the nature of the person’s complaint and the affirmative relief requested. The Treasurer shall allow the claim in whole or in part or may deny it. Refunds of tax and interest erroneously paid and amounting to $100 or more may be made only with the approval of the governing body. (’87 Code, § 7-8-10)

(K) The audit of vendors shall be conducted in accordance with NMSA § 3-38-17.1.

(’87 Code, § 7-8-11)

(L) It is unlawful for any employee of the city to reveal to any individual other than another employee of the city any information contained in the return or audit of any taxpayer, except to a court of competent jurisdiction in response to an order thereof in an action relating to taxes to which the city is a party, and in which the information sought is material to the inquiry; to the taxpayer himself or to his authorized representative; and in a manner, for statistical purposes, the information revealed is not identified as applicable to any individual taxpayer. (’87 Code, § 7-8-12)

(M) The governing body shall administer the lodger’s tax monies collected. The Mayor shall appoint a five-member advisory board, with approval of the City Council, that consists of two members who are owners or operators of lodgings subject to the occupancy tax with the city, two members who are owners or operators of industries located within the city that primarily provide services or products to tourists and one member who is a resident of the city and represents the general public. The Board shall advise the governing body on expenditure of funds authorized hereunder for advertising, publicizing and promoting tourist attractions and facilities in the city or surrounding area. (’87 Code, § 7-8-13)

(N) Tax proceeds will be used in accordance with NMSA §§ 3-38-15 and 3-38-21. (’87 Code, § 7-8-14)

(Ord. 86-016; Am. Ord. 92-035; Am. Ord. 94-031; Am. Ord. 99-013; Am. Ord. 22-08)

Penalty, see § 10.99

37.03 MUNICIPAL INFRASTRUCTURE GROSS RECEIPTS TAX.

(A) There is imposed on any person engaging in business in this municipality for the privilege of engaging in business in this municipality an excise tax equal to 1/8% of the gross receipts reported or required to be reported by the person pursuant to the New Mexico Gross Receipts and Compensating Tax Act, NMSA §§ 7-9-1 et seq., as it now exists or as it may be amended. The tax imposed under this section is pursuant to the Municipal Infrastructure Gross Receipts Tax Act as it now exists or as it may be amended and shall be known as the “Municipal Infrastructure Gross Receipts Tax.” (’87 Code, § 7-10-1)

(1) The transmission of messages by wire or other means from one point within the municipality to another point outside the municipality;

(2) Transporting persons or property for hire by railroad, motor vehicle, air transportation or any other means from one point within the municipality to another point outside the municipality; or

(3) A business located outside the boundaries of a municipality on land owned by that municipality for which a gross receipts tax distribution is made pursuant to NMSA § 7-1-6.4(A).

(’87 Code, § 7-10-3)

(D) Revenue from the municipal infrastructure gross receipts tax will be used for all municipal government services, including, but not limited to administration, courts, public safety, planning, recreation, leisure services, streets, infrastructure and drainage.

(’87 Code, § 7-10-4)

(Ord. 92-017; Am. Ord. 92-018)

37.04 ENVIRONMENTAL SERVICES GROSS RECEIPTS TAX.

(A) There is imposed on any person engaging in business in this municipality for the privilege of engaging in business in this municipality an excise tax equal to 1/16% of the gross receipts reported or required to be reported by the person pursuant to the New Mexico Gross Receipts and Compensating Tax Act, NMSA §§ 7-9-1 et seq., as it now exists or as it may be amended. The tax imposed under this section is pursuant to the Municipal Environmental Services Gross Receipts Tax Act as it now exists or as it may be amended and shall be known as the “Municipal Environmental Services Gross Receipts Tax.” (’87 Code, § 7-11-1)

(1) The transmission of messages by wire or other means from one point within the municipality to another point outside the municipality;

(2) Transporting persons or property for hire by railroad, motor vehicle, air transportation or any other means from one point within the municipality to another point outside the municipality; or

(3) A business located outside the boundaries of a municipality on land owned by that municipality for which a gross receipts tax distribution is made pursuant to NMSA § 7-1-6.4(A).

(’87 Code, § 7-11-3)

(D) Revenue from the municipal environmental services gross receipts tax will be used for the acquisition, construction, operation and maintenance of solid waste facilities, water facilities, wastewater facilities, sewer systems and related facilities. (’87 Code, § 7-11-4)

(Ord. 91-022)