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 lodgings, 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.

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

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, short-term rental unit 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 ATTRACTIONS. 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 or their designee.

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.

(D) There is hereby imposed an occupancy tax of revenues of 5% of gross taxable rent for lodging within the municipality paid to vendors.

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

(2) For the purposes of fulfilling this requirement, the Treasurer shall review the information submitted in the vendor’s application for the issuance of a business registration pursuant to Section 110.04 as well as records provided pursuant to the requirements of this chapter.

(3) The Treasurer shall not issue a lodger’s tax license to any vendor whose records reflect any unresolved noncompliance with this chapter.

(4) The lodger’s tax license shall be valid for a period of one year from the date of issue.

(5) An applicant who is refused a lodger’s tax license 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 10 days prior to the meeting of the governing body, by certified mail, return receipt requested, and advertise notice of the meeting at least 10 days prior to the meeting of the governing body. The decision of the governing body made thereof shall be expressed in writing. The action of the governing body shall be deemed final.

(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 lodgings 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 the accommodations at summer camps operated by such institutions;

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

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

(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 in accordance with this section and shall be charged separately from the rent fixed by the vendor for the lodgings.

(3) Each vendor 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.

(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, shall be open to the inspection of the city or its auditors during reasonable hours, and shall be retained for three years.

(I) (1) The vendor is liable for the payment of the proceeds of any occupancy tax that the vendor failed to remit to the city due to the vendor’s failure to collect the tax or make a return or otherwise. A civil penalty shall be due in an amount equal to the greater of 10% of the amount that was not duly remitted to the city or $100. 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 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.

(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 district court 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, the cost of collections and reasonable attorneys’ fee incurred in connection therewith.

(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. The City Clerk or Treasurer shall furnish to any person applying for such a certificate a certificate showing the amount of all liens in the city records against any vendor pursuant to NMSA § 3-38-1.

(5) Under process or order of court, no person shall sell property of a vendor without first ascertaining from the Treasurer the amount of any occupancy tax due the city. 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.

(J) If a vendor believes the vendor has made payment of any lodger’s tax in excess of that for which the vendor was liable, the vendor 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 vendor’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.

(K) The Treasurer shall audit vendors, in accordance with the provisions of this subsection, to verify the amount of gross rent subject to the occupancy tax and to ensure that the full amount of occupancy tax on the rent is collected from and remitted by each vendor.

(1) For audits conducted pursuant to NMSA § 3-38-17.1 a minimum of two lodging vendors will be randomly selected for audit each year, to include one hotel/motel and one short-term rental.

(2) The Treasurer may at any time audit a vendor based on the reasonable belief that the vendor has failed to comply with the requirements of this chapter.

(3) Vendors selected for audit shall cooperate fully with the Treasurer and its auditors and shall comply with all requests for information or documentation made by the city or its auditors within 15 calendar days.

(4) The requested audit information or documentation shall be provided electronically unless otherwise specified by the city or its auditors.

(5) The Treasurer may issue a fine to the vendor not to exceed $100 per day of noncompliance with the requirement to cooperate with the provisions of this subsection. Failure to pay any fine imposed by the Treasurer within 15 days shall result in the revocation of the vendor’s license.

(6) Copies of audits completed shall be filed annually with the local government division of the Department of Finance and Administration.

(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.

(M) A lodger’s tax advisory board shall be appointed and shall have such duties and responsibilities as provided in Section 33.25.

(N) The governing body shall administer the lodger’s tax monies collected in accordance with relevant statutes to include NMSA §§ 3-38-15 and 3-38-21.

(O) Any person violating this chapter may be subject to the revocation of their lodger’s tax license and the penalty described in Section 10.99.

(Ord. 86-016; Am. Ord. 92-035; Am. Ord. 94-031; Am. Ord. 99-013; Am. Ord. 22-08; Am. Ord. 25-05; Am. Ord. 25-16)

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)